Are you an overseas investor seeking to make a strategic move into the UK property market?
A UK-based property investor looking for the next place to invest?
Look no further than County Durham, a hidden gem in the Northeast of England. Property Guru, your dedicated partner in property investment, is here to unveil the potential of this remarkable region. With its unique blend of history, growth, and investment opportunities, County Durham offers a canvas for lucrative returns and long-term success.
Investing in County Durham: The Pros and Cons
Nestled within the North East Local Enterprise Partnership (LEP) region, County Durham stands as a beacon of investment potential. Encompassing local authority areas such as Gateshead, Newcastle, Sunderland, and more, this region boasts a collective population of two million people and a highly skilled workforce. The strategic location of County Durham positions it as a prime destination for property investors seeking both solid rental yields and capital appreciation.
The Power of County Durham's Towns and Villages
Within County Durham, a cluster of towns and villages presents unique opportunities for property investment. Let's explore some of the notable areas that have captured the attention of savvy investors:
Stanley: Where Convenience Meets Potential
Stanley, strategically located between Durham and Newcastle, has emerged as a hub of convenience and potential. Its recent redevelopment has transformed it into a favoured choice among tenants. While a train station might be absent, Stanley is conveniently located equidistant between Durham and Newcastle and as such it remains a commutable choice for professionals working in nearby cities.
Stanley Town Centre offers a wealth of major supermarkets and amenities while there are also a number of highly regarded schools such as: East Stanley School, St Joseph's Catholic Primary School.
Property prices are affordable in Stanley and here at Property Guru we tend to source properties between £40,000 and £65,000 dependant on their condition.
Chester-le-Street: A Gem of Desirability
With excellent schools, seamless transport links, and proximity to Durham and Sunderland, Chester-le-Street has solidified its place as a sought-after investment destination. Its array of amenities, including Riverside Park, hospitals, major supermarkets, and reputable schools, contributes to its desirability among families and professionals.
While property is more expensive than nearby Stanley, the town is going from strength to strength so taking a lower rental yield for higher capital growth may appeal to some.
Bishop Auckland: Rising through Redevelopment
Bishop Auckland, in the midst of an ambitious redevelopment phase bolstered by government funding, offers investors a unique opportunity. This revitalisation effort is expected to drive property values up, making it an area to watch closely for potential appreciation.
Here at Property Guru, we are already seeing the effects of the regeneration reflected in property prices. Having risen steadily along with rents, Bishop Auckland has proven to be a popular choice for our investors looking for good rental returns and capital appreciation.
Investment Insights: Your Path to Prosperity
County Durham's property investment landscape is rich in promise. The region predominantly features terraced houses with 2 or 3 bedrooms, catering to a diverse rental market. The affordability of these properties, ranging from £40,000 to £80,000, makes them an attractive option for investors. Rental income potential also shines brightly, with rents ranging from £495 to £650 per month.
A Recent Investment Example
The Property Guru recently secured a property on Pine Street, Stanley for an investor based in Hong Kong. The main figures are outlined below:
Negotiated purchase price £40,000
Refurbishment £11,000
Cash invested (without SDLT and fees) £51,000
The property rented out within a week of marketing at £495pcm
Gross yield 11.65%
When the new owner comes to mortgage the property, they can expect the below figures:
Property valuation £65,000
75% LTV (£48,750 mortgage)
Cash left in the property (not including SDLT and fees) £2,250
Images of the property:
This is just one of many properties we have secured in Stanley this year for investors based in the UK and overseas. Like the sound of these figures? Contact the Property Guru team to arrange a free, no obligation consultation call today.
At Property Guru, we take it a step further by offering a distinctive advantage: transforming terraced houses into 5 or 6-bed House in Multiple Occupation (HMO) setups. This strategic move unlocks the potential for fixed income and reduced maintenance risk, thanks to our partnership with a social housing provider. County Durham is in high demand for the social housing provider and we have a fantastic working relationship with them along with architects and build teams in place to handle the conversions. We are able to obtain 5-year contracts with the provider where they guarantee the rental income and handle basic maintenance at the property. Interested? Contact the Property Guru team today to find out more.
Economic Prowess and Population Pull
County Durham's economic vibrancy is underpinned by significant employers like Amazon and their fulfilment centres. Additionally, cities such as Durham, Sunderland, and Newcastle house universities and large hospitals, fostering a dynamic and resilient economy that attracts a skilled workforce.
With the surrounding towns offering affordable housing, they have become very popular among tenants and are happy to commute to work making the most of this saving.
Quality vs. Quantity: A Thoughtful Approach
Investors face a crucial decision: prioritise quality over quantity. While smaller villages might offer cheaper properties, the allure of higher rental yields must be weighed against tenant quality and property maintenance. Areas like Stanley, Houghton-le-Spring, Chester-le-Street, and Bishop Auckland present a favourable balance with better tenant care and lower turnover rates.
All too often we see new and unexperienced property sourcing agents offering deals that look too good to be true. Well, that is because they are! It is very easy to package up a £40,000 terrace property in a small village with a 10% rental yield however, experienced agents like Property Guru know all to well the importance of securing a property in the best possible area for the price. This is why we avoid the small villages in County Durham as well as towns such as: Hartlepool, Darlington, Teeside, and Middlesborough.
Comparative Advantage: A Global Perspective
For investors, County Durham stands tall in comparison to other regions, including bustling cities like Manchester. The Northeast offers attractive rental yields coupled with an advantageous initial investment, allowing investors to secure multiple properties for the price of just one or two elsewhere. While the capital appreciation may not match other major cities, if you are looking for impressive returns on investment and monthly income then County Durham could be the place for you.
In Conclusion: Your Journey Begins Here
As an investor, the County Durham landscape beckons with promise. With high rental yields, strategic locations, ongoing redevelopment, and a strong economic foundation, these areas are primed for investment success. Property Guru serves as your guiding light, offering expert counsel and a curated portfolio of properties poised for investment excellence. From buy-to-lets, to BRRR and HMOs, we can source the right property for your budget and goals.
Expanding on County Durham's Heritage and Culture
County Durham isn't just a destination for smart investors; it's also a place steeped in history and vibrant culture. From the magnificent Durham Cathedral, a UNESCO World Heritage Site, to the captivating Beamish Museum that brings the region's past to life, County Durham is a treasure trove of cultural experiences.
Investing in County Durham's Future
As County Durham undergoes ambitious redevelopment efforts, investors have a unique chance to contribute to the region's growth story. The infusion of government funding into projects like Bishop Auckland's transformation signals a commitment to creating vibrant, modern communities while preserving the area's rich heritage. This is also creating more demand for serviced accommodation in the area, providing yet another income stream/strategy for savvy investors.
Community Resilience and Support
One of County Durham's standout qualities is its strong sense of community. The people of this region are known for their resilience, warmth, and neighbourly spirit. For investors, this translates into a reliable tenant base and a positive atmosphere for property ownership.
Navigating the Pros and Cons
As with any investment endeavour, it's important to consider both sides of the coin. County Durham's many strengths—high rental yields, strategic location, ongoing redevelopment, and cultural richness—should be weighed against potential challenges. These might include market fluctuations, evolving tenant demands, and the need for prudent property management. Property Guru offer lettings and management services throughout the northeast and are here to answer any questions you may have before entrusting us to manage your portfolio.
Seizing the Opportunity: Connect with Property Guru
Unlock the potential of County Durham's property market. Contact Property Guru today to explore a world of investment opportunities, backed by expertise, experience, and a commitment to your success. Property Guru Director, Simon has a portion of his buy-to-let portfolio in County Durham so is a great source of real-world information on how best to navigate the area and your investment.
Disclaimer:
This blog post is not be be construed as investment advice. Its purpose is to provide more information on the area of County Durham from a property investor's perspective but in no way is placed to provide advice or recommendations. You must always carry out your own due diligence and seek professional advice prior to making any investment decision.
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