Wednesday, May 25, 2016

'Project' in Brendon Grove, Bingham, Could See a Return of Around 6%

This property is being advertised on rightmove as 'coming soon'.  The price is very low so I imagine there will probably be an amount of work to be done in order to bring the property up to current lettings standards!  However, it could bring in a yield of around 6% to an investor once it has been renovated.  See the (very brief) details below, or better still arrange a viewing to see for yourself.

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Thursday, May 19, 2016

What Would Brexit Mean to the 3,000 Bingham Property Owners?

If you read all the newspapers, the Brexit debate seems to be focused solely on central London. Many commentators have said Brexit would mean central London would have a lower standing in the world, meaning less people would be employed in Central London, with the implication of lower wages, fewer jobs etc., in Central London ... but we are in Bingham, not Marylebone, Mayfair or any part of Zone 1 London.

Now on the run up to the vote on the 23rd of June, I predict the ‘in’ camp will start to scare homeowners with forecasts of negative equity, and the ‘out’ camp will appeal the 20 somethings, who have been priced out of the property market with the prospect of a new era of inexpensive housing, should the fears of central London estate agents and developers (who believe the bottom will fall out of the market if we do leave) become real. The only reason the Mayfairs, Knightsbridges, and Kensingtons of central London are attractive to foreign buyers are political and economic steadiness, an open and honest legal system and a lively cultural life. None of that is threatened by Brexit.

... But again, we are in Bingham and central London is 128 miles away. We are hometown to Bingham Cricket Club and have been a popular location for various film and television scenes, and whilst the central London property market exploded after 2009, that explosion really and honestly didn’t affect the Bingham property market. So, putting central London aside, what would an ‘in’ or ‘out’ vote really mean for the 3,000 property owners of Bingham?

Initially, over the coming months, on the run up to referendum, I believe it will be like the run up to last year’s General Election. With the short-term uncertainty in the country, quite often, big decisions are put on ice and people are less likely to make big money purchases i.e. buy a property. However, in the four months up to last year’s Election, property values in Bingham increased by 0.66%, not bad for a country that thought it would get a hung parliament! So that argument doesn’t hold much weight with me.

I believe that a vote to stay in the EU would see the Bingham property market return to a status quo very quickly, but the contrasting result could lead to some changes. The principal menace to the Bingham (and UK) housing market could be variation (in an upwards direction) in interest rates as a result of a Brexit, which could theoretically see the cost of mortgages grow swiftly, pricing many out of the market … but then two thirds of landlords buy without a mortgage, so that won’t affect them.

I suspect whatever decision the electorate of Bingham and the country as a whole makes, over the long term it won’t have a major effect on the Bingham property market. We have seen off ‘the end of the world’ credit crunch of 2008/9 and subsequent property crash, the 1988 Nigel Lawson induced post dual-MIRAS property crash, the 1979 Winter of Discontent property crash, the 1974 oil crisis that stimulated another property crash ... hell, we can even go back nearly a century with the 1926 post General Strike slump in property prices...

Today, property prices are 127.87% higher than 21 years ago in Bingham and are 3.6% higher than 12 months ago. So, make your own decision on 23rd of June 2016 safe in knowledge that whatever the result, there might be some short term volatility in the Bingham property market, but in the long term (and property investment is a long term strategy) there aren’t enough houses in Bingham to live in either to buy or rent … and until the Government allow more properties to be built – the Bingham property market will be just fine ... even if it has a little blip in the summer, there could be some property bargains on the run up to Christmas to be had!

For honest advice on the potential of any investment property or a performance review of a current property portfolio please feel free to come in and see me in our office on the Market Place or give me a call on 01949 714101

Wednesday, May 18, 2016

Fab Family Home, Hill Drive Bingham, Could See 5.6% Return

This is a fab family home in a popular area of Bingham.  With good proportions, the property is in good decorative order and has a neat, easy to maintain garden and so will appeal to lots of tenants. With this in mind it could see a return of around 5.6%.

Have a look today at what could make a fantastic investment:

Thursday, May 12, 2016

21% of Bingham People Rent - Is that 'Healthy'?

Home owning often makes less financial sense than renting and as the rate of homeownership is starting to drop substantially, as we roll the clock forward to today, there is no stigma at all to renting .. everyone is doing it. In fact, of the 9,100 residents of Bingham, 1,926 of you rent your house from either the local authority/social provider (ie council house or housing association) or private landlords – meaning 21.16% of Bingham people are tenants.

The idea of homeownership is deeply embedded in the British soul, in fact 7,057 Bingham people live in an owner occupied property (or 77.54%). Housing is at the heart of Government policy, as George Osborne has promised 200,000 new properties a year so first time buyers can buy their first home whilst recently changing the tax laws for buy to let landlords. To get votes, Thatcher (and everyone since) ran election campaigns promising everybody their own home, and as a country, we seem to equate homeownership the goal of British life.

So as more and more people are renting nowadays, are we turning to a more European way of living? Well, I believe, as a country, we are. In fact, homeownership could be affecting your health! The UK, according to Bloomberg, is only the 21st most healthy country in the world. Germany is at No.10 and Switzerland at No.4 and homeownership is at 52.5% and 44% respectively in those countries (in the UK it is 64.8%).

In the Rushcliffe Borough Council area, 76.15% of homeowners who own their house outright said they were in ‘very good’ or ‘good’ health whilst, at the other end of the scale, 5.41% said their health was ‘bad’ or ‘very bad’. Looking at renting, the census splits tenants into two types – 66.51% of Rushcliffe local authority/social tenants said they were in ‘very good’ or ‘good’ health and 12.05% were in ‘bad’ or ‘very bad’ health …

… whilst ‘private rented tenants’ in Rushcliffe, were the healthiest, as 88.61% of them described themselves in ‘very good’ or ‘good’ health and only 3.01% were in ‘bad’ or ‘very bad’ health

I am not suggesting that low homeownership rates in Switzerland and Germany are directly linked to health, nor, do I expect Brits to all go to Berlin, Interlaken or Düsseldorf and realise how happy people are when they don't need to worry about all the stresses which accompany homeownership. The numbers for Bingham do go some way to back up the argument (and they are the same across the whole of the UK). Nonetheless I do think that substantially all of the upside to homeownership in recent years has been a function of monumental rising house prices. Now that's come to an end, it's hard to see why anybody would want to buy?

Renting is here to stay in Bingham and it’s growing incrementally each year. Even with the new tax rules for landlords, buy to let is still a viable investment option for most people in the town. There has never been a better time to buy an investment property in Bingham, but buy wisely. Gone are the days that you would make profit on anything with four walls and a roof. Take advice, take opinion, do your homework. 

Wednesday, May 11, 2016

Cute Cottage in Sought After Woodborough - Unique Investment Property?

This charming cottage, situated in the sought after village of Woodborough, is being marketed by Gascoines in Calverton and is currently on the market for £124,950.  At that price it could see a healthy return of 5%.

The property could be in need of a lick of paint (I have not personally viewed the cottage) but looks to be in good general order.  It should attract a long term tenant due it its location and style.

See full details here: 

Friday, May 6, 2016

Fab Investment Could See a Return of 6% - East Bridgford

This 3 bed semi would make an excellent family home.  Situated in the sought after village of East Bridgford, which has a thriving community and excellent primary school.  The property would make a great investment as it would let very easily (maybe needs new carpets?) and could see a return of around 6%.

With summer approaching, and tenants looking at school places, this could be the perfect time to purchase your first buy to let.

View the details here:

Thursday, May 5, 2016

Rents in Bingham rise by 2.4% in the last year

Recently it was announced UK inflation had increased to its highest level in a year. Inflation, as calculated by the Government’s Consumer Prices Index, rose by 0.3% over the last 12 months.  The report said the rise was due to by smaller falls in supermarket and petrol prices than a year ago. If you recall, in early 2015, we had deflation where prices were dropping!

So what does this mean for the Bingham property market ... especially the tenants?

Back in November, the Office of National Statistics stated average wages only rose by 1.8% year on year, so when adjusted for inflation, Bingham people are 1.5% better off in ‘real’ terms.   Great news for homeowners, as their mortgage rates are at their lowest ever levels and their spending power is increasing, but the news is not so good for tenants.

The average rent that Bingham tenants have to pay for their private rental properties in Bingham (i.e. not housing association or council tenants) rose by 2.4% throughout 2015, eating into most of the growth.  2015 wasn’t a one off either.  In 2014, rents in Bingham rose by 1.3% (where salaries only rose by only 0.2%) However, it’s not all bad news for Bingham tenants, because in 2013 rents rose by 1.0%, (but salaries rose by 2.2%).

… and it must be noted that the private rents Bingham tenants have had to pay for Bingham property since 2005 are only 15.0% higher, not even keeping up with inflation, which over the same time frame, rose at 27.8% (although salaries were only 22.3% higher over the same time period)

More and more, talking to 20 and 30 somethings who rent – it’s a choice.  Gone are the days where owning your own property was a guaranteed path to wealth, affluence and prosperity.    

Whilst we in the UK stand at 64.8% homeownership, only 52.5% of Germans own a home and only 44% of Swiss people are homeowners.  Looks like eating chocolate, sauerkraut, renting and good economic performance go hand in hand.  Yet, joking aside, home ownership has not always been the rule in the UK.   In 1918, only 23% of people were homeowners, with no council housing, meaning in fact, 77% were tenants.

Tenants have choice, flexibility to move, they don’t have massive bills when the boiler blows up, it’s a choice.  Bingham rents are growing, but not as much as incomes. To buy or not to buy is an enormously difficult decision.   For while buying a Bingham home is a dream for the majority of the 20 and 30 something’s of Bingham have, it might not leave them better off in the long run and it isn’t necessarily the best option for everyone.  That is why, demand for renting is only going in one direction – upwards.