You may want to consider a few things when selling a property to make a profit.
Understand Timing Is Key
According to the Zoopla Senior Property Researcher, Izabella Lubowiecka:
‘Generally, the longer someone lives in [or owns] a property, the more money they stand to make.
‘However, those who bought when property prices last peaked, just before the 2007 financial crisis, saw more modest gains than those who bought after, when house prices dipped.’
As such, homeowners who have resided in their properties for a decade to fifteen years garnered around £89,000 on average.
Discover More: Check out our guides on buying a rental property and how to build a property portfolio for more property investment insights.
Think About Location
The average home value in your neighbourhood also influences the amount you’ll earn from a sale, so investing in an area amid regeneration could see you make a more significant profit on your initial outlay.
Sellers in the capital, who had owned properties for over 15 years, made more than £250,000 between sales. However, they would have needed to spend a lot more money on the property in the first place. For many investors, this is simply out of the question.
Beyond London, homeowners who purchased their properties after the 2007 financial crisis, which instigated a correction in house prices, experienced the most significant increases in value.
This plays into one of the most common investment strategies: buy cheap and sell for a profit.
As you’d expect, doing this in areas with good-value properties and high capital growth potential is easier. So, while London offers an alluring potential profit, more savvy investors look further north.
For instance, the North West has a capital growth prediction of 20.2% by 2028 – almost 7% higher than in London. In addition, the region is expected to see buy-to-let returns of 9.2% during the following year. It also has a higher average yield than London, which means investors will earn a more significant profit percentage based on their monthly rental income.
If you want to dive into some buy-to-let area guides, check out the following:
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