Thursday, January 26, 2017

Investment Property in Newton - 5.3% Yield

A popular area for commuters, being close to Bingham station, and with good transport links to Nottingham, Leicester and Newark.

This is a great property for investors who are perhaps making a tentative dip into the property market, or for seasoned landlords expanding their portfolio.

With 2 double bedrooms and modern kitchen and bathroom, it is just what tenants are looking for in a rental property.

The property is being marketed by Newton Fallowell Bingham, at an asking price of £134,950.  I would expect to achieve a monthly rent of around £595 PCM, making the yield an attractive 5.3%.

Full details can be found here:

Monday, January 23, 2017

Hope for Better Rented Housing

Despite government changes and fresh challenges in the ‘buy-to-let’ market, the future for rented property will continue to be one of the best bets for the country’s growing number of tenants as well as landlords.

Although the market is likely to be slowed down by the threat of stricter ‘buy-to-let’ rules - including tougher affordability checks for buy to let mortgages and the withdrawal of tax relief on mortgage interest – we are still reporting an increase in demand for houses to rent.

If you are a cash investor, or perhaps an ‘accidental landlord’ who has inherited a property with no mortgage repayments, you can expect a very healthy return on your investment – far better than you could achieve from mainstream savings products.  

A priority in 2017 will be to carry on sourcing more local, good quality rental accommodation to satisfy both landlord and tenant client demand across the board.

Recent figures suggest an encouraging rise in the number of rental properties coming onto the UK market in nearly 60 per cent of UK towns and cities. And although rents are rising modestly they are, nevertheless, rising. 

A Labour-backed inquiry into the nation’s housing crisis revealed that almost two-thirds of UK tenants don’t expect to afford a mortgage in the next five years either.

Meanwhile, government house building targets have let them down again. A House of Lords committee called for 300,000 new homes to be built in England each year - but in 2015-16 just under 190,000 new properties were added to the housing stock.

The private rented sector plugs a serious gap and provides essential good quality, affordable housing for a modern generation of tenants while opening up new opportunities for people who can invest in ‘buy-to-let’ properties.

New property investors will need to have a very clear strategy, in terms of what they expect from rental returns and capital growth. Renting in 2017 is expected to be an increasingly real alternative to home ownership but landlords need to buy property at the right price and thoroughly research its marketability.

If you are considering investing, then Bingham may offer the type of returns you are looking for. In the long term it is prime placed for good levels of capital growth due to its close proximity to Nottingham and commuter routes and good schools.

For an honest opinion on rental values please do not hesitate to give me a call on 01949 714101 or pop into our office on the Market Place in Bingham. 

Wednesday, January 18, 2017

Lovely 3 bed Investment Potential £199,950 - Mallow Way, Bingham

Another great investment property on this popular development.  As mentioned in my post last week, if you have a little more money to invest, you could see higher capital growth.

This property is ready to let and would let very easily, leaving very little void period. Being marketed by Richard Watkinson & Partners, bingham, see full details here:

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Image 2 of 15: Breakfast kitchen

Image 3 of 15: Sitting / dining room

Image 6 of 15: Bedroom 1

Wednesday, January 11, 2017

Capital Growth in Bingham


If you are thinking of investing in property you need to consider not only the monthly yield but also the growth on the capital invested.  I was really pleased to see high levels of capital growth seen in many Bingham properties.

I concentrated my research on my preferred type of investment – the ones that will let on the first viewing and appeal to the right type of tenant – modern 2 and 3 bedroom properties.

There are a lot of properties in Bingham that were built around 10 to 15 years ago.  Built with efficiency in mind and which should continue to offer a low maintenance option for the next 10 years.

I found modern 2 and 3 bed properties that had been bought in 2005 and sold again in 2016 had seen an average of 28.75% growth in the capital over this time. When you consider during this 10 year period we have also had a double dip recession I think that’s pretty good going.

The rental income on these has also increased over this time.  Back in 2005 we would be getting £650 PCM for these 2 beds and now we are getting nearer to £800 PCM.

In Bingham itself you do need to be looking at investing between £175,000 - £200,000 in a property to see these levels of returns.

Looking further afield to, say Calverton, you can achieve a good yield on an investment of around £125,000.

The difficulty for investors is getting hold of these types of properties. They don’t come on to the market very often and they sell quickly.