Monday, December 3, 2018

Investment property with rental income from day 1!

I have found an investment property for sale at the moment in Calverton with William H Brown. it is a 3 bed semi and looks to offer 6.5% return on this £120,000 investment ...

https://www.rightmove.co.uk/property-for-sale/property-57714108.html


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Saturday, November 24, 2018

5.4% potential return on at £110,000 investment

This one bedroom quarter house is being marketed by Newton Fallowell. It is on the market for £110,000 and would easily let for £500 pcm. These are popular with individuals and it looks to be in good order...

https://www.rightmove.co.uk/property-for-sale/property-56978163.html


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Thursday, November 22, 2018

What is happening to East Midlands House Prices?



HM Land registry have released this month the data for the House price index for England year to September 2018. It lists the annual price increases for the regions and the East Midlands have seen a 6% increase on house prices achieved 12 months ago.  This has to be a reflection of the South and London housing markets slowing down.

You may have seen the Daily Mail reports talking about the North / South divide in property inflation being over. While the West and East Midlands have had a 6.1% and 6% increase - outperforming all other regions - is it enough to say there is no longer a divide? It is certainly showing that the East Midlands is catching up!

We know that the East Midlands is in a great location and with the added economic investment near East Midlands Airport and in the major cities of Leicester, Nottingham, Derby, and Loughborough. 

Bingham is on the edge of Nottingham and has a good supply of excellent primary and secondary schools. It has always been a popular choice for families and sees a high demand for rental properties, the large new housing development currently being built here will certainly be sought after.

The Daily Mail article talked about people moving looking for a better value property. Bingham certainly offers a lot of house for your money for anyone moving up from the southern regions.
   
Personally I have seen friends returning to the area this year now they are looking to settle down after working in London since graduating. When they are ready to buy it is the East Midlands that can provide access to employment opportunities and is still close enough to easily see friends and visit London.

I believe the value of the properties in the Bingham area will continue to increase as the East Midlands continues to grow in strength economically and the town will provide a sound investment for anyone looking to purchase a property.

To get an up to date property valuation or honest opinion on the rental return of a buy to let please do not hesitate to contact me. Katie Archer 01949 714101
Katie.archer@belvoir.co.uk

Wednesday, November 21, 2018

Bingham investment property for £125,000 - 5.2% potential yield

This 2 bed has just been reduced to £125,000. It's on Brendon Gorve and would easily let for £550 pcm - a potential 5.2% return. 

The bathroom and Kitchen look to be in good order and it has a garden. It is marketed by Purple Bricks have a look at the link...

https://www.rightmove.co.uk/property-for-sale/property-56642685.html


View Of The Property   Bathroom

Tuesday, July 17, 2018

The performance of Bingham rents over the last 10 years...


The last few years have really felt like the rents have started to increase in Bingham and the surrounding villages. But what does the data show?  We have analysed our data for rental values across the whole of the East Midlands over the last 10 years.

When the recession hit in 2007 we started tracking the data across the region to pull together the rental figure analysis.  We caught it just in time to see the effect of the recession on the private rental sector in our area.

Many offices saw relatively flat rents during the recession. The figures show how the effect of the recession on the rents was not reversed until 2015 when we started to see rental levels higher than 2007.



The initial slump in rents when the recession first kicked in can be attributed to the increase in rental stock on the market as property owners were unable to sell property as easily.  Although we saw a quick increase in numbers of rentals on the market there were also a lot of tenants looking to rent as there were less mortgages on offer and a much steeper borrowing criteria.

As well as property supply affecting rental values, wages also have a large impact on what rent a property can achieve.  We believe that wages are the biggest driver of rent increases.

Unlike house prices, which can carry on rising irrespective of what is happening to wages, rents appear to flat-line when wages rise at less than inflation. We dont tend to see rents rise until wages are increasing at a faster rate than inflation. This means that in areas where there is a shortage of supply versus demand, we see rents rise for a few quarters, then they tend to flat-line again, even if demand remains higher than supply as tenants simply cannot keep paying more rent than their earnings.

This is also likely to be partly linked to tenant referencing / insurance companies requiring 2.5 - 3 times salary to pass affordability tests.

In the Bingham area, after the start of the recession we saw more properties come onto the market to let as property owners could not sell but the demand remained high.  This did mean rents dipped slightly then flat lined until 2014 and did not see a growth back to pre 2007 levels until 2015.

We are now seeing higher rents achieved each time a property is coming back onto the market to be re-let.  For example in 2014 a 3 bed semi detached property in good order with a garage would achieve around £695 pcm and in today's market we would expect to easily achieve £795 pcm - a 14% increase.

In the future I believe rents will continue to rise as the supply of rental property in the private rented sector is outstripped by demand from tenants and this should improve the yields available for investors.

If you have a property let out and you would like to discuss the rental value or are considering an investment property please feel free to give me a call or pop into our office on the Market Place in Bingham.
Katie Archer 01949 714101 

Saturday, July 14, 2018

6% return in Bingham for a £134,950 investment


These apartments on Eden Walk let for £675 pcm and this one is on the market with Hammond Property Services for £134,950. 

This is a lovely development and is popular with professional tenants.  You must remember to include any leasehold fees with apartments that will affect the yield. 

https://www.rightmove.co.uk/property-for-sale/property-54783018.html

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Thursday, July 12, 2018

2 bed ideal investment property in Bingham £165,000

This property has just been listed with William H Brown for £165,000 and it is a smart 2 bed on Rockingham Grove. 

This looks to require no work to get it ready to let and would easily achieve £675 pcm.


https://www.rightmove.co.uk/property-for-sale/property-66326935.html