There’s a variety of reasons why people look to invest in the cheapest properties they can find. It may sound like the perfect concept for flipping properties in Tameside or even just to find an inexpensive roof to put over your head. But where can Tameside’s inexpensive properties really be found?
Given the number of properties being constructed in the borough with price tags north of £200,000, you’d be forgiven for thinking there’s a driving force aiming to push the concept of affordability out of Tameside.
After all, first-time buyers certainly can’t afford those numbers; landlords and buy-to-let investors aren’t going to entertain those figures either as the returns simply won’t add up unless the properties are suitable for HMO conversions.
It’s worthwhile to note that typically, Tameside first-time buyers and buy-to-let landlords look in the £80,000 to £120,000 range for affordable properties suited to their needs; of which there are many properties in Tameside that cater to this.
There are however a host of streets in the borough that present even cheaper properties than the typical budget pitched by investors and first-time homeowners. During my research of the top 20 inexpensive streets in Tameside, I discovered that even the twentieth inexpensive street in the borough only just tips the scales over £70,000:
Based on transactions since 1995, Tudor Avenue in Stalybridge is Tameside’s most inexpensive street with an average property purchase price of £44,850; that’s cheaper than a brand new BMW 4 series.
The remaining 19 streets see incremental increases from £49,000+ upwards to the £70,000 mark. Furthermore there are still a vast quantity of streets in the borough that remain under the £100,000 mark that many homeowners and investors look around.
However, it is never as simple as buying cheaply.
There are a wealth of considerations to take when buying properties at such prices. The first and foremost is the condition of the property itself. Many sellers throw properties onto the market in states of dilapidation which are simply uninhabitable; they tend to require substantial amounts of money to make safe and to return to desirable living conditions.
Then there’s the actual location of the property itself. Properties in area riddled with crime, poor amenities, under-performing schools and generally seeing no investment or care from local authorities are prime candidates for low property prices.
There is however a curveball to be thrown into my results, particularly regarding Tudor Avenue. All of the above reasons I stated that drive property prices down are not actually contributing factors to why the average property price on the street are so low.
In fact it’s quite the opposite. A great location with great local amenities, schools and a lower crime rate on average to the rest of the borough poses the street is desirable when it comes to property investment. The majority of homeowners actually purchased their properties in the years running up to the credit crunch and have remained in their properties ever since. The low number of transactions since contributes to the low data of property prices, where values will have inevitably have increased.
So there you have it; buying cheaply isn’t always as simple or as easy as it seems. I’m a huge advocate that when buying property, whether as a homeowner or an investor, to take a huge number of considerations to make sure you’re getting the best value or return of your investment.
For more information on where to find the best properties in the borough for investing, particularly without breaking the bank, give me a call on 07709 505442.