OFF TO AUCTION : Multiple Properties

The healthy housing market in Northampton over the last few years means that very little property has gone to auction - even the ones that have been very grubby have sold locally without any issue. It's hence a surprise that a number of local properties have appeared in the catalogue for Barnard Marcus' next Hammersmith Auction in early February - whether this a single owner with multiple properties who's gone bust, or whether it's a new tactic from the Sequence group (who own Barnard Marcus and a couple of local estate agents) I don't know. 

The guide prices on the properties are VERY low. I suspect they are all in pretty rubbish condition and need £15-£20k spending, but even so the guide prices remain VERY low. Here's an example - http://www.rightmove.co.uk/property-for-sale/property-63648712.html - this must be worth £150k in tip top order. The tactic here is probably to generate LOADS of interest and fill the room, getting the price bid up way over the indicated £95,000. But you never know - private purchasers may be put off by auction conditions or won't have time to sort a mortgage out. So there MAY be an opportunity to pinch a bargain if things don't go as expected in the auction room on the day.

Full auction list here: http://www.barnardmarcusauctions.co.uk/Current_Auction.html

CHEAP FLATS, Cash Only, £80k, 7% after charges.

Properties in Northampton House have appeared on this blog on multiple occasions over the years. They come with a high service charge, and can only be purchased with cash, so it's all about when they are being offered for sale at a suitably attractive price. From a rental perspective, they rent extremely well, enjoy a prime town centre location, and generally cause no issues.

There are a couple of 2 beds for sale at the moment which have recently been dropped so they DO now make good buys. Advertised at £80,000 and with a rental potential of £650PCM, they offer a return of 9.75% before charges. That is going to get hit by the service charge (not confirmed but probably about £170 a month) but will still leave you in excess of 7% with the charges factored in.
This won't appeal to everyone, but for the more commercially minded of you it's a fairly straightforward way to get a headline return of 7% on a cash investment of £80,000.
The properties are advertised on property portals with a local agent, who you would need to contact for viewings. I'm more than happy to answer further queries as required. richard.baker@belvoir.co.uk.

BUY TO LET GUIDE 2018 NOW RELEASED!

Better late than never, we're pleased to release our buy to let guide for 2018! This has been updated to reflect current market trends and provides a starting point for anyone who wants to buy an investment property in Northampton, but doesn't know where to start. If you're looking for property and want a copy, please get in touch - richard.baker@belvoir.co.uk - and I'll be happy to email one over.

WHY BUY THIS : Town Centre flat with negligable service charge, £117,500

The new year has seen some fresh impetus in the buy to let market with renewed interest from investors - clearly people have been doing their sums over the Christmas break! We're also aware from conversations other estate agents that at the lower end of the market - maybe £140k and below - a lot of stuff is selling without advertising. So whilst I say on this blog that there's not much around, what I really mean is there's not much that's making it as far as Zoopla.

One thing that will be coming on the market very soon is this flat close to the town centre and about 300m from the general hospital. It's a converted Victorian terrace, so unlike its more modern equivalents the management arrangements are more informal and the service charges are greatly reduced. We are advised there's a lease of 97 years, and service charges are only £50 per annum. I'm guessing there must be a little more than this as £50 wouldn't cover the buildings insurance - but this is certainly one of those split Victorian properties where lease charges are going to be nominal.

The property is in good order and should rent for at least £575PCM. It's very rentable due to location and condition - void periods for smaller units in this area are almost zero over the last 5 years. At an asking price of £117,500 that's around 6% return which is good considering that it will hardly be reduced at all by lease charges.

No pictures yet - you'll have to trust me that internally it's in good order!

This will be advertised, but not until early next week. Viewings will be through ourselves, so please contact richard.baker@belvoir.co.uk quickly if you're keen to have a look (or just buy it!).