Wednesday, December 21, 2016

Lovely Langar - Potential Investment Property for Sale

Langar is a sought after village within the Vale of Belvoir.  The village itself has many amenities including a primary school, post office and pub. With great transport links to Bingham, Nottingham, Grantham and Leicester, the village offers a rural base for any commuter.

The property is neutrally decorated, though there is no photo of the kitchen and so that would need investigating.  Assuming no major works are required, a landlord could see a rental yield of around 5%, which is a good return on any investment currently.

See the property details here, it is on the market for sale with Frank Innes Bingham:

Friday, December 16, 2016

Uncertainty in the 2017 Bingham Property Market

I have been reading lots of articles in the media about uncertainty in 2017, if 2016 is anything to go by who knows what will happen!!

It got me thinking about the Bingham property market, employment levels and the availability of credit?

We have to realise that the chronic shortage of housing will keep prices buoyant even if lending does become more difficult.

We have seen lots of changes in Bingham since 1998.  If there has ever been a problem for people to borrow money or to secure a mortgage, it has always increased the numbers of people looking to rent a property.

The increased demand, and shortage of rental available, only results in rents increasing.   Perhaps it will become more viable for a landlord to invest if they can see the returns on a rental property grow.
The government do seem keen to keep increasing the taxation levels on landlords.   Without people investing in property there would be no Private Rented Sector to cater for those who choose to and need to rent.   It’s often their only option or the best option for their current circumstances.

I believe we will see those with some cash to invest still buying property, especially if the yields become more favourable, as the returns from savings are expected to remain low.  The increasing yields would offset the increasing taxation levels for landlords but it is not going to help the tenants of Bingham – many who are just about managing at the moment.

If you are already a landlord and concerned about the effect of a potential unsettled period there are things you can do to minimise your exposure to risk.   The main things are ensuring your property is well maintained and regularly inspected.   Make sure you have a comprehensive Buildings insurance with reasonable excesses – you don’t want any nasty surprises from an escape of water for example.

It seems very unlikely, but should employment levels in Bingham ever be affected, Landlords could consider taking out a Rent Guarantee.   If a tenant becomes unable to pay then the rental income will be protected and the costly eviction process will also be covered.   I do believe here in Bingham we are well placed geographically for people to be able to find work.

If you would like to discuss anything about the Bingham Property Market please call me on 01949 714101

Thursday, December 8, 2016

Investment Property Over 6% Yield - Calverton

This property, situated on a great plot, could bring in a yield of over 6%, which is a fantastic return for any investor.  While it may need some cosmetic work to bring it up to the current rental market standard it looks as though the big jobs have already been done.

On the market with Martin & Co at an asking price of £110,000, it is the most reasonably priced 3 bedroom property on the market in the area so I don't imagine it will be around for long.

Frontage  Lounge  Kitchen  

Wednesday, December 7, 2016

2016 - The Bingham Rental Market

The rental market has been very different for us during 2016.   At any one time we would normally have around 25+ properties to let, but this year has seen the average be around 8 available at any given time.   This has resulted in great competition for rental properties amongst tenants and an increase in the rent the properties can achieve.

I did some investigations and of the current live tenancies on our system (let only and managed) 47% have been in their tenancy for over 2 years.   Our longest standing tenant will be celebrating her 16th year in her property this month! 

The rental market has changed so much since she moved in.   It suits many investors that tenants are now staying longer but means that fewer properties are coming onto the market for re letting and thus reducing the numbers of property available.
December too has been a strange month - with double the number of notices coming in from tenants.  These re-let properties are letting quickly so our residual stock remains around the 15 mark.

What will happen in 2017?  I think rents will continue to increase as the availability of property remains low and the demand from tenants is still high.   Bingham will always be a popular place to live as there are plenty of employment opportunities in the area , along with good schools.   

If you are considering an investment during 2017, please feel free to give me a call or pop into my office in the Market Place, Bingham.