Wednesday, February 22, 2017

2 Bed Investment in Bingham - Could See Yield of Around 5%

This 2 bedroom property is a fab investment opportunity.  With the all-important 2 DOUBLE bedrooms, it should appeal to a broad range of tenants.  

Close to good schools and with easy access to the A46, A52 and station, it is situated in a fantastic location.

The property itself is in good order, but see for yourself here:

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Tuesday, February 21, 2017

Mortgages - Interest Only or Repayment?

I had a landlord visit me last week in my office on the Market Place in Bingham; she was interested in purchasing a property in Newton.    

We had an interesting discussion about the best way to borrow funds for a property investment.

She had £50,000 for use as a deposit on a 2 bed semi with a purchase price of £140,000. She had set aside £4,500 for the stamp duty and any solicitor’s fees and was planning to secure a mortgage for the remaining £90,000.  The property should see a rental income of £595 pcm.

An independent mortgage broker had searched the market and come up with a few options - one of which came with no lender arrangement fee, 2 year fixed rate 2.39% and worked out at:

25 year repayment mortgage £398 per month or interest only £179 per month.

She wondered which would be the best type of mortgage to go for.   My instinct would be to say a repayment mortgage but we have to consider an individual’s circumstance and exactly how they would like their investment to perform.

In this landlord's case she was looking for an income from her inheritance, already in early retirement she never planned to own the property.   So an interest only mortgage would suit her for the next 10 years of property rental.   This would maximise the monthly income she would receive until she sold.

With an interest only mortgage she would need to repay the mortgage when she sold it.  If property prices have remained the same over 10 years then she would be able to repay the original sum borrowed and retrieve the cash invested.

There is a risk that house prices may fall over that time and the value it is sold for will not cover the mortgage.

The history of sale prices is readily available on the Land Registry site or Rightmove and Zoopla websites so it is possible to track how these have performed over many years.

By discussing your options and researching your local market you are more likely to get the type of returns you are looking for.

When planning any investment it is important to understand tax liabilities that may be due when you come to sell the property.   We advise anyone looking to invest to seek independent financial advice.   

Figures supplied by Thomas Nicholas Financial Services in Melton Mowbray 8th Feb 2017.

Wednesday, February 8, 2017

Modern Apartment in Calverton - 6% Yield

I have posted about these apartments before, and here is another on the market with David James Estate Agents.  They are great buy to let investments - modern, inexpensive, easy to maintain.  This one has the added bonus of no chain, so the buying process should be fairly quick.  

Located on a popular, quiet development in the thriving village of Calverton, this apartment also has a garage, so would take no time to let.

I would expect to achieve a monthly rental of £550, thus giving the investor a healthy yield of 6%.

See the full details below, make an offer and then let me know when you would like me to let it for you!