Don't be scared of REFURBISHMENT

The majority of investors I encounter are nervous about properties that don't look pretty and the thought of "works" makes their face go pale. For most, it's not the money that bothers them - it's the thought of hassle, dealing with tradesmen, getting their hands dirty, etc. I explain that we'll sort all that out for them, quickly and at a fixed price - so they don't need to get involved. But that requires a leap of faith on their part which I understand, so maybe I should feedback more often on this blog about refurbishment works we've undertaken.

So here's one we've just completed - a Victorian terraced property that the owner was managing herself and which came back in fairly basic order. 4 weeks later, and all for a fixed price, everything is done and we've managed to raise the rent by £150 per month due to the better condition. The owner isn't UK based so we've chosen the spec etc.

If you're buying a property to let, picking one that needs refurbishment is often a good idea - especially when the alternative is buying a fairly average one at the 'market rate'. By the time you've spent money on refurbishment you may end up having paid the 'market rate' for your property, all in. But yours is now is really good condition, with many things under guarantee, and as it's sparkling you can try for a premium rent. You're in a far better position than if you'd bought the average one, found out that it needed a few things you hadn't factored in, and ended up paying ABOVE the "market rate" by the time you'd sorted all the problems out.  

6.4% return after charges, £72,500

There's not much you can buy in Northampton for £72,500 so this studio flat should tick a few boxes for investors who are tight on budget but want a decent return. It's in Lumbertubs which isn't the most celebrated of postcodes, but is perfectly lettable to a decent tenant - it seems like there's one there already paying £450PCM which is about right.

It will be a Local Authority lease here which means charges are generally reasonable and there looks to be just under 100 years left on this property. The property itself looks like it might benefit from some nominal updating between tenancies but nothing that should break the budget or fundamentally change the figures above.

http://www.rightmove.co.uk/property-for-sale/property-63937981.html Here's the flat. You need to view it through the agent that's advertising it. But I'm more than happy to answer general questions about lettability etc. richard.baker@belvoir.co.uk.

PREFER TO SHOP IN LONDON? Here's what you could have instead! http://www.rightmove.co.uk/property-for-sale/property-48671689.html

BULK PURCHASE - Potential 10% discount

I have a corporate investor who's looking to sell a number of apartments in Northampton - all in the same ALPHA HOUSE building. They'll sell individually over the next few months for about £115,000 (1 bed) and £135,000 (2 bed) but I sensed from a conversation today that there might be a deal on the table if someone takes multiple units.

All apartments are tenanted and have been managed by us since built 10 years ago. There are no problems with any of the tenancies. 1 beds will be achieving £575 and 2 beds £675.

These are nice modern apartments, well finished, building is 5 mins walk from the mainline station. We rent many in the building - they rent constantly and consistently - void periods are almost non-existent.

Leases will be around the 115 year mark and annual charges will be around £1400 (1 bed) and £1700 (2 bed).

There are 5x 1 beds which we would sell individually for £115,000
There are 5x 2 beds which we would sell individually for £135,000
If someone would take 5+ units in one go, a saving of £10,000 per unit may be achievable. 

If you're interested in these, get in touch as the number available (and the potential for a price reduction) will diminish as individual units are sold. richard.baker@belvoir.co.uk

APARTMENTS WITH STRONG RENTAL HISTORY

When I first opened my lettings agency in 2006 I was fortunate to pick up a number of apartments in a newly built block close to my office. I think at one point I sat outside the block for 4 days solid waiting for unsuspecting landlords to appear!
Fast forward 12 years and the rental experience of these owners has been really good. The apartments are largish, well built, well located and very attractive from a tenants perspective. They have gas central heating (many modern ones don't) and tenants can walk to town in 5 minutes. We calculate that the ones we've managed have been empty for around 7 weeks in 12 years which is WAY above average for apartments of that type.

I'm aware that a couple of owners intend to sell their flats soon. I await full details but would expect figures to be roughly as follows:

• 2 bed, 2 bath apartment - £145,000, rented at £700PCM, total annual charges about £1200, lease of 113 years.
• 1 bed apartment - £115,000, rented at £600PCM, total annual charges about £1000, lease of 113 years. 

These are in the SOUTHBRIDGE area of town, which runs along the side of the river near the town centre. We sell a number in the area every year - again our location helps - but the flats in this blog are in one of the better blocks due to size and specification. If you're looking at modern apartments in the price range above, these are probably a good bet in comparison to what else you could have locally. 

I await full details of what, when and how much, but am expecting to have this soon. If you're interested and want me to contact you when I'm instructed to sell, email me and let me know. richard.baker@belvoir.co.uk.