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

Fab Price, Fab Location, Fab BTL Investment!

This property came on to the market today, with Newton Fallowell Bingham.  It is situated on a lovely cul-de-sac on a development popular with families and commuters.  I can't imagine it will be on the market for long, and it would let just as fast.

With a yield of around 5.2% this is a great investment property.  Click for details below and arrange a viewing today:

http://www.rightmove.co.uk/property-for-sale/property-53136151.html

24.4% of Bingham tenants in the private rented sector are on Housing Benefit

“What does the ideal Bingham tenant look like?”, asked one of my landlords the other day, to which he carried on before I could reply, “Let me guess, a professional couple, both in their 30’s, flawlessly tidy, pays their rent early, doesn’t complain or fuss, who has no plans to move and cheerfully accepts annual rent rises”.

Tenants tend to fall into several groups ... 20 something professionals; young and middle aged families; corporate tenants (ie their employer finds their employee a house to live in); students; older singles/couples and housing benefit claimants – and they come with different needs and wants. So choosing who best suits your Bingham property – and steering clear of bad tenants – is a big factor in making property investment a success.

One topic that I am often asked is should they, as a landlord, accept tenants on housing benefit?

It might interest the landlords of Bingham that of the 5,595 private rented properties in the local council area, 24.4% of the tenants of those properties are on some form of housing benefit. (1,368 properties to be exact). I know many landlords have suffered late rent payments with tenants on benefit, especially since 2008, when local authorities started paying housing benefit to tenants rather than directly to the landlords, but you can’t ignore the fact that housing benefit tenants make up a significant proportion of the Bingham rental population. My opinion is that the final choice of accepting such tenants has to be the landlords but you can’t tar every tenant with the same brush (I will always give you a balanced opinion if ever asked).

Interestingly, when we compare the Bingham area to the national picture, 24.4% is much lower than the national figure. Nationally 39.2% of the tenants of the 3,891,467 rental properties in Great Britain claim some form of housing benefit (ie 1,526,915 properties).

Looking at the occupations of Bingham tenants, of the 5,595 privately rented properties in the Bingham area, 4,499 head tenants (the head tenant being classified as the head of the household) are in employment (the other 1,096 rental property head tenants either being retired, long term sick, students or job seekers).

Splitting those 4,499 head tenants down into their relevant professions, 2,425 of them are Managers, Directors, Senior Officials, Professional or Technical Professions, 430 in Administrative and Secretarial occupations, 453 in Skilled Trades, 277 in the Caring, Leisure and other Service occupations, 325 Sales and Customer Service Occupations, 232 Process, Plant and Machine Operatives and finally, 357 in Elementary Occupations.

The one thing I have always known anecdotally, but until I did my research, never had anything to back it up with, was the high proportion of professionals and skilled trades renting property in Bingham – intriguing!

If you are considering investing in property in the area please feel free to give me a call for honest opinion on potential rental returns or keep an eye on the Blog as I like to post good buy to let investments that come on the market.

Easy to let apartment in Bingham - great investment opportunity

These apartments let so easily, this should not be on the market for long, it would make a great investment as there is little to go wrong in an apartment of this age.  The area is very popular with professionals and families alike, due to the proximity to good schools and transport links.

There will be a service charge on this, but that should include buildings insurance, plus any maintenance on the communal areas, roof etc, which can all add up.

Snap up this great BTL today, before the new stamp duty taxes come in (1st April).

http://www.rightmove.co.uk/property-for-sale/property-57704573.html

Bingham Landlords Count the Cost of a Conservative Election Win

Can you remember 10.05pm on Thursday, 7^th May 2015 ... with the shock news that BBC Exit Polls suggested the Conservatives would be returned with majority? The middle classes in Aslockton and Scarrington exhaled a huge sigh of relief, as Bingham landlords, faced with rent controls from the Labour Party, now had something to cheer about.  The Conservatives were always considered to be a political party that accepted the importance of the rental market, supported its development while properly targeting the lawbreaker landlords renting out below standard rental accommodation.

Since May though, George Osborne announced future rises in stamp duty for buy to let landlords and a change in the interest relief on buy to let mortgages, some people have started to question that loyalty. 

The loss of higher rate tax relief on mortgages will mean that a number of properties do not stack up financially. The new rules are likely to slow demand in the Bingham housing market, which is in fact good news for the other landlords, as there is less competition from 'amateur' landlords offering too much.

Just a thought, but making Bingham landlords think twice and run their numbers more cautiously is not such a bad thing.

So looking at the numbers, the November figures have just been released and they show a slight drop of property values in Bingham of 0.3% over the month of November. That figure doesn’t surprise me due to the time of year. It’s quite dangerous to look at one month in isolation, so looking at a more medium term view, over the last 12 months, property values in Bingham have risen by 3.7%, not bad when you consider inflation is running at -0.1%.

However, regular readers of the Bingham Property Blog know my passion for looking deeper into the stats. The really interesting information is the value growth; but which types of property are actually selling in Bingham?  Looking at all the properties sold, as recorded by the Land Registry, within 1 mile of the centre of Bingham in September 2015 (this data always runs a couple of months behind the house price data) compared to September 2007 (a couple of months before the credit crunch started to bite and the subsequent property crash).

	Sept 2007	Sept 2015	Difference
Detached in Bingham	7	5	- 29%
Semis in Bingham	5	2	-60%
Terraced Houses in Bingham	1	5	+400%
Apartments / Flats in Bingham	2	0	-100%

Now I have mentioned in previous articles that the numbers of properties selling in the town has certainly dropped post 2008, but what amazed me were the drop in the number of detached, semis and apartments selling in Bingham compared to the rise in sales of terraced properties, which rose considerably.

Less properties are selling than last decade in Bingham and the types of properties selling have changed ... interesting times ahead for the Bingham Property market!

Therefore, all I can say to the landlords of Bingham is do your homework, make sure the numbers do stack up, take advice and opinion from professionals and above all, for those of you planning to add to your portfolio, buy the right property at the right price.

If you would like to discuss the Bingham property market or the viability of a potential investment please feel free to pop into our office on the Market Place in Bingham or give me a call on 01949 714101.