NOW SOLD Deal 2 : SPRUCE UP : Northampton : Buy £100k, Rent £550

On a day of deals(!) this has also appeared and represents decent value. Offered at £100k, it's going to need some freshening up internally, but nothing major. As such I'm assuming that £100k is the all in price - you'll buy it for slightly less and spend the difference on the freshening up. I reiterate that we will do the freshening up for you if required.

This one is a 2 bed in St James - good access to town and the station. Easy renter at £550PCM - these things rent all day. 6.6% yield.

NOW SOLD Deal 1 : REFURB : Northampton : Buy £80k, Spend £15k, Worth £110k.

I visited this property yesterday and it's a definite opportunity for someone. As there were a handful of other people looking, I suspect it will disappear this weekend.

Situated in close proximity to the station, it's a 3 bed with downstairs bathroom. Needs updating, but will sell for £110k once done. The asking price of £80k is fixed - please don't make me look silly by offering less! 

As ever, we can assist with all refurbishment works if required on a fixed price basis - we're currently working on a property on an adjacent road that was bought in a very similar condition. 
It will rent for £595 when done - that's a 7.5% yield based on £95k for someone!!!

RUGBY - what can you buy for £100k?

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 £110k buy in Rugby?

The market opens up at this price - there's much more choice for investors, including most 2 bed apartments in town. You'll even get some new build apartments for £100k if you haggle hard, but be careful as you often find the service charge on modern units can be quite steep which doesn't help your yield. Buyers are often attracted to these as they look pretty, but i'd still be trying to pick something from the options below.

Rugby is full of little Victorian Terraces around the town centre - all different, all higgledy piggledy. It seems that town planning policy over the last 30 years has been to allow people to do whatever they want to their properties which means they all look different and the traditional Victorian kerb appeal is gone in a lot of places. They rent well and sell well though, so are the bread and butter of the Rugby rental market. Internal condition is paramount - make sure yours is nice or that you have plans to make it nice. There's actually shortage of nice ones, so it may be a case of buying at £90k and spending £10k beautifying it. £525 to £550PCM is about right for one of these. Be careful about an agent overvaluing it.

If you're crafty, you can also pick up something like this, which is in the Bilton area. They don't come up often, and in honesty they are probably £110k all in, but you'll get £595 for this 3 bed house, and it's a more modern property meaning you're less likely to have the maintenance problems that may occur with a Victorian one. We think they are some of the best buys in town if picked up at the right price. Very popular with families. This is the sort of thing I'd buy myself at the right price - it's a good balance between a decent yield and a decent area.

NOW SOLD 6.6% for £100k in Northampton

This has just come to the market and is sensibly priced, so be quick! Advertised slightly higher, you can buy it for £100k, and it will rent for £550PCM. It may need a little bit of minor work in places, but it could be done in 48 hours - it's not big stuff. It's in Hampton Street, NN1 - I own a property in this road myself, and it's fine for letting. All the fugures I've quoted are 100% realistic - you may even get slightly more in rent.
As ever, a sensibly priced freehold property like this will go quickly, so don't delay if you're interested - richard.baker@belvoirlettings.com.

Market Update : April 2013 : Keep Expectations Realistic Please!

THIS IS OUR UPDATE FOR THE NORTHAMPTON AND RUGBY LETTINGS MARKETS (APRIL 2013)

It's been a while since I updated landlords on the state of the lettings market in Northampton & Rugby, but now seems a good time to do so. The market in both towns is about the same currently, so it's possible to generalise. 

The reason I'm choosing to do this now is because the picture painted in the national media is very much that the demand for rented property is massive, and that rents are always up X% on previous months / years. I get landlords asking me when they are going to get their X% increase, and when their tenant gives notice if they can up the rent by £50 per month? Sometimes this is possible. Often it isn't. 

The market in both towns is actually as healthy as it has been since we started trading. In Northampton this was 2006, and in Rugby the business actually opened in 2003 under the previous owners. This means that landlords who have a well presented and sensibly priced property are rarely without a tenant. It also means that some landlords have been able to squeeze rents up to higher levels than they've managed previously. It doesn't mean that rents have gone silly and you can charge what you want though - the national media rarely looks outside London when writing these articles, so offers a distorted view of reality when it comes to the bright lights of the East Midlands!

For instance in Northampton, the sheer number of 2 bed flats on the rental market stops prices moving significantly. If you ask for an extra £50, it's fairly easy for a tenant to find a landlord who doesn't. In Rugby, the average income of tenants restricts prices - there's no point raising the rent to a level where your tenant can't afford to pay.

Some landlords have enjoyed an increase though - houses are generally trading at £25 or £50 per month more than they were a few years ago, which is good. The inherent danger here is that landlords come to expect these levels of rent - just as a few years ago people assumed property prices could only rise, the mistake they will make now is assuming that rents can never fall. They can. And at some point they will.

But although I sound negative, there's no reason to be concerned! Just be realistic. The long term demographics of the rental market remain VERY good - a chronic shortage of housing, a growing population, large funds needed to purchase property, etc etc. I chose to open a lettings agency and am a landlord myself which shows that in the medium to long term I think investment property is good place to be. 

Our advice to all Belvoir landlords is hence to charge the best rent you can, but fundamentally to AVOID THE VOID. I have one large landlord who for a number of years has insisted that his properties are marketed about 5% under the market value - going against the advice I initially gave him. However when we look back at his portfolio over a number of years, we see his average void between tenancies is less than 7 days - his properties are hardly EVER empty. Compare that to the landlord of a property who let it sit empty for 3 months because the previous rent was £700 and he wanted to wait until he was offered that again. He did get it eventually, but he's lost £2100 by the time he did. Had he accepted our advice to market at £650 from day 1, he would have lost a lot less. Incidentally, he doesn't think he lost - he's happy that he won because he got his £700!

It's also worth remembering that if we're managing your property, we're on a cut of the rent you receive. As such it's in our interests to charge a tenant as much as we can, as well as yours. Hence if we're recommending not moving a rent, or even dropping it, we usually have a valid reason for suggesting this. 

NOW SOLD - BARGAIN in Northampton - must be CASH

A bargain here for someone, but it requires a full refurbishment. I haven't seen the property myself as the selling agent has "blacklisted" me apparently! However assuming it's got no structural issues, you can't go wrong at this price - yes it will need everything, but it's a small 2 bed that's worth at least £115k once done, and there's less than £20k of work here. The asking price is £87.5k. In a way, buying them when they need everything is good, as there are no surprises. It's in Kingsley - one of the nicer Victorian areas which makes this a really good bet. It's not going to be mortgageable and you'll need to have cash. One of the deals of 2013 for someone, and we'll do the work for you if required.

Buy Tenanted - £112k, £575 rent, 6.2% yield.

I saw this property on Saturday. There's an opportunity to buy it with a tenant in situ paying £575PCM. 
It's a Victorian Terrace close to the mainline railway station and offered in pretty excellent order - recently re-plastered throughout, with new kitchen, bathroom, etc. When the tenancy changes there will be the need to make some cosmetic changes - living room carpet has some stains on etc, but that's about it. Owner seeks £112k with the tenant in. 

RUGBY - what can you buy for £80k?

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 £80k buy in Rugby?

There's the odd freehold property at this price, but you're still mainly looking at leasehold, all be it a higher standard of leasehold than at £60k and presumably a higher standard of tenant too.

The gems, if you can find them, are properties like this. £75k in Long Lawford or similar for a 1 bed house that will rent for £450PCM, delivering you over 7%, without a service charge deduction. They are relatively modern too meaning that running costs are more predictable than with a period property.

The alternative is a more modern flat, somewhere like this one in Lawford Bridge Road. This will rent for £525PCM, but can often be acquired for less than £80k if there's a repossession involved, so a starting yield of £7.8%.