RUGBY - what can you buy for £60k?

When most people look for a buy-to-let investment, they have a budget. With that in mind, over the next few weeks, I’m going to look at what a given sum should buy you in  Rugby. In doing this, I’m talking about properties in good lettable order, so if a property needs works doing, this is what you should budget INCLUDING works.  Have a read, and if you want a chat about properties you've seen, EMAIL ME! richard.baker@belvoirlettings.com.

What will £60k buy in Rugby?

At this price band, you’re really restricted to leasehold properties, and deals are few and far between. You will find things though if you search hard enough. You'll also find some of the best yields on offer, as pretty much every 1 bed property will rent for a certain sum, by buying inexpensively, you're keeping the yield high.

Something like this doesn't look like, but will make you good money. This particular flat was in pretty poor order, and needed full renovation, but at about £45k all done, and a rent of £395PCM, gave a yield of  over 10%.

Or there are a few blocks in town where flats are inexpensive, mainly because they are quite small. This one is on Wood Street, and 1 beds generally sell for less than £60k, studios a bit less. Again the rental will be £395PCM or thereabouts, so the yield is 8.5%+.

NOW SOLD 10%+ in RUGBY - you need £40k cash

Now here's something you don't see often - a 10% yielding property in Rugby. And it's all in at £40,000 cash (or there abouts). 
It certainly isn't pretty. It's not in the best area of town, but we'll still let it privately for at least £350.00. You're never going to fall in love with this property, but it's one to add to the portfolio and let it earn you some money. 
And although occupied currently, it's in a pretty shocking condition, so the safest assumption is you're going to have to everything to it internally. I actually prefer them like this, as there's no hidden cost - you know from the start that the whole lot is required. I'd say £12k or so would be right on this one - it's small, but everything is required. It's advertised at £35k - I'm not sure it will get that, but you never know these days. As such I'm assuming an offer will be in order.

Purchase	£30k
Refurbishment	£12k
Monthly Rent	£375
Yield	10.70%

What do you want for £40k?

Are You Insured?

PAYOUT TO TENANT COSTS INSURER MILLIONS

There's a story below which should be of interest to landlords. Essentially, a tenant has fallen downstairs, sued the landlord, and his insurer has paid out a small fortune in compensation.
The important thing here is that the landlord WAS insured - things like this can happen in any property, and tenants WILL sue! Because this landlord had LANDLORDS buildings and contents insurance, he was covered, as these policies include an element of public liability insurance which picks up issues like this.
If the landlord had normal residential buildings insurance, he would NOT have been covered, and would be facing huge bills himself.
http://www.lettingagenttoday.co.uk/news_features/Fall-down-stairs-in-rental-flat-could-cost-insurers-millions
The key question here for all landlords is "does my buildings insurer know that my property is rented out?" If they don't know, you need to make them aware quickly, and change insurer if necessary. Email us : rugby@belvoirlettings.com or northampton@belvoirlettings.com if you need more information.

Job Lot - 5 Flats, Already Tenanted, 15% Discount Available

I have a vendor who is looking to dispose of 5 tenanted flats as a job lot. It in an investor with a sizeable portfolio who is simply 'tidying up loose ends' - nice work if you can get it!

Cambridge Court	2 bed	£585.00	£104,995.00
Cambridge Court	2 bed	£575.00	£104,995.00
Cambridge Court	2 bed	£585.00	£104,995.00
Henry Bird Way	2 bed	£595.00	£104,995.00
Henry Bird Way	1 bed	£450.00	£79,990.00
TOTAL		£2,790.00	£499,970.00

All flats have over 100 years on the lease. All are in the same area (Southbridge) which is very close to the town centre and one of Northampton's rental hotspots - no problems with finding tenants here. These are modern units (10 years old?) that will rent privately to decent tenants.
You can see from the table above what the market values are. I'm happy that these are pretty much accurate - if the vendor sells individually and sticks it out, he should get this for the properties.
I also understand that if someone was prepared to buy all 5 as a job lot there is a deal to be done, and a figure of around £420,000 may be considered. Clearly this would need to be someone who could move quickly.

RUGBY - easy renter - £115k / £575PCM / 6.0% yield

A very decent bet in a Rugby market where it's often difficult to find genuine value. This is a modern property, that's pretty much ready to go - kitchen and bathroom are fine, so is the internal presentation. Smart 2 bed houses are very much at a premium in the town centre, so finding a tenant at £575PCM won't really be too difficult at all. 

Purchase	£115,000
Upgrade Cost	£minimal
Rent	£575.00
Yield	6.0%

I'm aware I have a number of buyers looking solely at Rugby. Yields are never massive in this town, but this is as sensible a little purchase as I've seen for a few months.

richard.baker@belvoirlettings.com for full details.

8.0% Yield - Tenant in Situ - £94,000

About as easy as it gets. 2 double bed apartment, already tenanted @ £575PCM, nicely presented and well maintained - no known expenditure or upgrading required. Current landlord favours a quick sale and as such a sensible price of £94,000 is quoted - please don't come along and haggle - assume this is the price you're paying - it's perfectly sensible. The lease is over 100 years also.

It's in Southbridge, Town Centre, close to the river nene and walking distance to the town and the station. We've had this flat under our management for 3 years and have never been without a tenant.

Pictures below. Please contact me for details.

HENRY BIRD WAY, SOUTHBRIDGE

IMPORTANT : Council Tax Changes

YOU WILL BE CHARGED FOR COUNCIL TAX WHEN YOUR PROPERTY IS EMPTY

This affects all landlords who rent a property in Northampton, excluding Grange Park.

From 01 April 2013, Northampton BC will be charging Council Tax on empty properties in the borough. Currently, if a property is empty and unfurnished, no Council Tax is charged for the first 6 months. This is changing so Council Tax will be payable by the LANDLORD, for any period where the property is empty. This includes if the property is undergoing refurbishment.

Further details on this can be found on the Council Website: http://www.northampton.gov.uk/ct-exemption-discounts2013

As far as we understand South Northants Council (Grange Park) do not intend to go down this route at this stage.

NOW SOLD IMMACULATE - EASY RENTER, £110k

This property has recently become available and is ideally presented for rental - nothing really that a landlord would have to do, and a VERY EASY introduction to the rental market. 

Price	£110,000
Rental	£575 per month
Yield	6.2% yield

It's a 2 bed house in St James, so offering excellent access to the station and town centre. Really well presented internally, so will attract a decent quality tenant without too much trouble. The rental price quoted is sensible. Because of the condition, the sales price is unlikely to reduce - if an investor doesn't take this property, a first time buyer will certainly step in given the property condition.
The agent is michael.haig@horts.co.uk - as this is likely to sell quickly you should contact him direct for details.