Investment Property for Sale in Calverton - Good Yield

This family home is situated in the popular village of Calverton.  A large village with plenty of amenities and good schools, Calverton offers good access to Nottingham city and also the Nottinghamshire countryside.

The property would make a good investment due to its relatively low asking price, and hence high rental yield of around 6%.  There may be some minor maintenance works to be done, and so would need to be viewed to make an assessment.

It is on the market with Gascoines of Calverton, with a current asking price of £129,950.

http://www.rightmove.co.uk/property-for-sale/property-38209932.html

£170,000 inheritance - Is buying Bingham Property still the best place for my windfall?

I had an interesting email from someone in Bingham a few weeks ago that I want to share with you (don’t worry I asked his permission to share this with you all). In a nutshell, the gentleman lives in Newton, he is in his mid 60’s and still working. He has a decent pension, so that when he does retire in a couple of years time, it will give him a comfortable life. He had recently inherited £170,000 from an elderly aunt. 

One option he told me was put it into a savings account. The best he could find was a 2 year bond with the Post Office which paid 1.9%; meaning he would get £3,230 in interest a year. One of his other options was to buy a property in Bingham to rent out and he wanted to know my thoughts on what he should buy, but he had concerns as he didn’t want to take a mortgage out at his time of life. He was also worried about all the tax changes for landlords he had read about in the news.

Notwithstanding the war on Bingham landlords being waged by George Osborne, the attraction of bricks and mortar endures for many. As my contact is a cash buyer, he would not have to deal with the intricate cut to mortgage interest tax relief that will diminish, or even eradicate, the profits of many Bingham landlords. It’s true he would face the extra 3% in stamp duty to buy a second property, but with some good negotiation techniques, that could soon be mitigated.

I told him that buying a Bingham buy to let property is all about the total return on investment. True, he could put the money in the Post Office bond and receive his interest of £3,230 a year or, as he rightly suggested, invest in property in Bingham. The average yield (yield being the equivalent of the interest rate on the property) at the moment in Bingham is 4.11% per annum, meaning our potential F.T.L (First Time Landlord) should be able to, depending on what he bought in the town, earn, before costs, £6,987 a year.

The bottom line is that the success of investing in Bingham buy to let property versus a savings account with the Post Office (or whatever Bank or Building Society is offering the best rate) will depend on the performance of those assets. Unlike with a savings account, with property the capital you invested can also go up (and yes, it can go down as well – more of that in second). Property values in Bingham have risen in the last twelve months by 4.7% meaning, that if our chap had bought a year ago, not only would he have received the £6,987 in rent, but also seen an uplift of £7,990 …meaning his overall return for the year would have been £14,977 (not bad when compared to the Post Office!).

..  but the doom mongers amongst you will say, property values can go down, as they did in 2008, and in 1988 and 1979. Yes, but after 1979 prices had bounced back to their ’79 levels by 1984 and went on to grow an additional 58% in the following four years. Then again, they dropped in 1988 and did take 13 years to reach back to those ’88 figures, but the following six years (between 2001 and 2007) they then increased by an additional 66%. Now, according to the Land Registry, average property values in Nottinghamshire currently stand 5.8% below the January 2008 level, and anecdotal evidence suggests that in the nicer parts of Bingham, we are well above these sorts of levels. Therefore, all this talk of property crashes is unfounded.

… and what would that £170,000 get you in Bingham? A brand new 2 bed semi on Bowland Road or a 3 bed terrace on The Paddock .. 

Modern Apartment in Eden Walk, Bingham - Perfect Investor Property

These apartments are so easy to let and with very little in the way of maintenance, they make a fantastic choice for buy to let investors.

On the market for £ 129,950, it is situated in a lovely residential development, with easy access to the A52 and A46 for Nottingham, Grantham, Leicester and Newark.

It should see a healthy return of over 5%.

See full details here:

http://www.rightmove.co.uk/property-for-sale/property-40376805.html

      

303 Bingham Homes bought by private landlords in the last 20 years – Is this the end for first time buyers?

I bumped into a local property investor and he wanted to know my thoughts on the future of the Bingham property market, and I would now like to share with you that conversation, my Bingham property Blog reading friends.

People are always going to need a roof over their heads – it’s a necessity for every single person. The 22 to 30 year olds of the town have a choice in what type of roof they have ... they can rent from the council, they can rent from a private landlord or finally they can get a mortgage and buy something. In the 70’s/80’s and 90’s, the expected thing was to save like mad for two years for the deposit (going without luxuries) whilst living at home or renting a cheap two up two down, then buy your first house. However, more recently, fewer young people of Bingham have been buying; choosing to rent instead – mainly from private landlords (as councils have been selling off council housing on the Right to Buy schemes).

Roll the clock back 20 years and Bingham was a different place. There were 2,900 households in Bingham and 2,248 of those were owner occupied. Move to the present, and with all the building in the town, the total number of households has increased by 34.1% to 3,889 and quite surprising (to me at least), the number of owner-occupiers has increased to 2,969.

However, it's the rented sector that is truly fascinating … twenty years ago, only 111 properties were privately rented in Bingham ... and now its 414!

The twenty-somethings of Bingham haven’t been helped by the local authority selling off council housing, with the number of council houses dropping from 365 to 119 over the same twenty year period. Demand for decent rented property remains high, as Cameron’s much vaunted house building program is years away and has decades of under investment to catch up on before it starts to affect demand. Even with the Buy to Let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing the people of Bingham and those who educate themselves and treat it as a business will survive and prosper.

The best way Bingham landlords can protect their property investment (and mitigate the affects of the tax rises) is to keep the homes they let out in Grade A condition. I have found, especially over the last three or four years, tenants have ever growing demands from their rental property, but many are prepared to pay ‘top dollar‘ for houses and apartments that meet their high expectations. You must not forget, letting property in Bingham (in fact anywhere) is a business, so all private landlords should also seek the advice, opinion and commentary of property professionals.

I have also been asked ‘What of the news of Stamp Duty changes for Landlords coming in April?’ My thoughts are, that with such low supply (numbers of property for sale), and high demand, it is hard to imagine Bingham property values will see much impact – but I predict, ever so slightly, the proportion of owner occupiers should increase slightly compared to buy to let landlords in the coming decade as the the housing market should return to balance.

Bingham Buy to let £134,950 - 4.9% return

This 2 bed is an ideal investment opportunity as it is only on the market for £134,950 with Rex Gooding.

Popular with professional couples and being conservative I would expect to achieve £550 pcm which would give a potential yield of 4.9% if purchased for the asking price.

http://www.rightmove.co.uk/property-for-sale/property-58059749.html

Bingham Buy to Let sees returns of 8.01% in 2015

I got chatting with one of my out of town landlords who was back in Bingham visiting his family the other day.  Brought up in Bingham, he went to Toothill School back in the 1970’s and is now a University Lecturer in central London.  He has a small portfolio of four properties in the town and wanted my advice on where to buy the next property in Bingham.

I reminded him that the most important thing when considering investing in property is finding a Bingham property with decent rental yields for income returns, yet at the same time, having the potential for capital growth from rising house prices over time. Going into 2016, Bingham landlords will be under more pressure to find the best permutation of yields and capital growth, as extra stamp duty charges for buying properties and a squeeze on mortgage interest relief will raise their costs.

Before we look at yield and capital growth, one important consideration that often many landlords tend to overlook, is the propensity of how likely the rent will increase. Interestingly, the average rent of a Bingham property currently stands at £614 per month, which is a rise of 6.2% compared to twelve months ago (although it must be noted this rise in rents is for new tenancies and not existing tenants).

Anyway, back to yield and capital growth, the average value of a Bingham property currently stands at £234,100, meaning the average yield stands at 3.15% per annum, which on the face of it, many landlords would find disappointing.  That is the problem with averages, so if I were to look at say 2 bed houses in Bingham which are the sort of properties a lot of landlords buy, in Bingham, the average value of a 2 bed house is £142,400, whilst the average rent for a 2 bed house is £511 per month, giving a yield of 4.31%.   However, if that wasn’t high enough, there are landlords in Bingham who own some specialist properties with specialist tenancies, that are achieving nearly double that yield – again it comes down to your attitude to risk and reward (give me a tinkle if you wanted a chat about those sorts of properties – although they can be fun and games!).

Ultimately investors want to be making gains from both rent and house price growth. When combined, the rental yield and capital growth gives you the return on investment. Return on investment is everything.   So, looking at property values in Bingham, these have risen in the last year by 3.7% …. which means the current annual return on investment in Bingham for a typical 2 bed house is 8.01% a year .... not bad.

To answer the question on what he should buy, once or twice a week, I post what I consider to be the best buy to let deals in Bingham, irrespective of which agent they are being marketed with.   

Cracking Family Home in East Bridgford Would be a Great BTL Investment

This is a fab family home in the popular village of East Bridgford.  Full of amenities, including a primary school, the village itself has a semi-rural feel, yet still being only 10 miles from Nottingham. Its up for sale with Richard Watkinson for £159,950.

The house looks good to go, with little maintenance needed to bring it up to letting standard.

http://www.rightmove.co.uk/property-for-sale/property-40121628.html