Thinking of investing in Norwich? Here we take a look through why ZebraInvest think Norwich is one of the UK’s hidden property investment hotspots.
Most investors look for one of four things from a property:
- Capital growth
- Rental yield
- Discount to market value on purchase
- Value that can be added
From these Norwich, and Norfolk, provides a great opportunity for Capital Growth and Rental Yields, depending on area.
Across the UK there’s 2185 postcode areas at NR5 (New Costessey, West Earlham and Bowthorpe) offers the 27th hottest postcode for yield at 6.2%.
The NR5 is located between the University of East Anglia and Norwich and Norfolk Hospital, providing great demand (and evidently returns) for local investors.
With an average house price (June 2021) of £244,471 it’s also in reach of most residential property investors too. The only downside being the NR5 postcode offers the lowest 3 year house price rise (historically) in Norfolk at 4%.
Just to the north of Norwich NR10 covers Horsham St Faith, Spixworth, Coltishall and Reepham (to name a few).
Over the last few years the NR10 area has seen a real boom in house prices, increasing by 23% over the last 3 years. With average house prices at £296,000 that’s an increase of £68,000 in 3 years.
Why are these statistics interesting? And can a local investor capitalise?
If you are focusing on long term rental income, rather than capital appreciation, it’s good to know where to look for your next investment.
At ZebraInvest we typically invest in HMOs (houses of multiple occupation) for University students, or areas with good quality (and close) employment opportunities. By investing in areas, such as NR5, purchased properties are appealing to both markets – ensuring there is always an option to continue renting out properties, delivering a strong return on investment.
You would have seen on our website – we also buy, refurbish and sell properties with investors. By targeting areas of capital appreciation, we can ensure that we purchase properties at the right price, refurbish and add value.
If you are considering investing in Norwich, get in touch – ZebraInvest are happy to help.