Tuesday, 29 March 2016

This week's 3 best buy-to-let deals in Rutland and Stamford

Property 1: Welland Way, Oakham £195,000
3 bedroom semi-detached house for sale.  On the market with Murray Estate Agent.

 

Starting with an Oakham property, this home on Welland Way offers the full package when it comes to a sound rental investment. 3 bedrooms, good drive, garage and garden.
 
Expect to attract young families that will want a long term let and with a rental income of £695pcm capital growth is also an attraction.

Price: £195,000
Approx. rent: £695pcm
Call: Murray Estate Agents on 01572 366 021
 
 
 
Property 2: Caithness Road, Stamford £179,950
2 bedroom semi-detached house for sale.  On the market with Newton Fallowell.

 

The "Scottish estate" in Stamford always attracts rental investment. Great convenient location for A1 and town centre, fantastic build quality and highly sought-after, all contributes to making this property a very good purchase.  £650pcm - £695pcm even for a two bed is as good as it gets.

Price: £179,950
Approx. rent: £650-695pcm
Call: Newton Fallowell on 01780 695 024
 
 
 
Property 3: Cow Lane, Whissendine, Rutland.  Guide Price £329,950
4 bedroom detached bungalow.  On the market with UPP Property Agents

 

I’m throwing in this 'curve ball' because of the expected rental income.
 
The bungalow is presented in outstanding condition and would command c£995pcm also taking into consideration the lack of bungalows available.
 
This property is a true find, especially as you could move in to it yourself in a few years!!
 
 
 
Guide Price: £329,950
Approx. rent: £950pcm
Call: Adrian McCarthy, UPP Property Agents on 01572 725 825
 
For a free valuation and advice on an existing property you already own, or if you have seen another property and would like to talk it through with me, please call me on 01780 484 554 or email me via: david@upp-property.co.uk.  I look forward to hearing from you.

 

Saturday, 26 March 2016

Stamford buy-to-let sees returns of 8.82% in 2015

I recently got chatting with one of my ‘out of town’ landlords who was back in Stamford visiting his family.

Brought up in Stamford, he went to Stamford School in the 1970’s and is now a University Lecturer in central London.



To enhance his retirement, he has a small portfolio of 4 properties in the town and wanted my advice on where to buy the next Stamford property.  He lives in a college owned flat in Kensington and would never dream of buying there - the average value of a flat is £1.62m and a town house is £4.1m!

Before I could advise him, I reminded him that the most important thing when considering investing in property is finding a property with decent rental yields for income returns, yet at the same time, it must have the potential for capital growth.

This year, 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 many landlords often overlook is the propensity of how likely the rent will increase.  Interestingly, the average rent of a Stamford property currently stands at £775pcm, 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 Stamford property currently stands at £298,400, meaning the average yield stands at 3.12% p.a., which on the face of it, many landlords would find disappointing.  That is the problem with averages, if we look at 2 bed houses in Stamford which are the sort of properties a lot of landlords buy, the average value of a 2 bed house is £183,300, whilst the average rent for a 2 bed house is £705 per month, giving a yield of 4.62%.

However, if that isn’t high enough, there are a few landlords in Stamford 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 call 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, and that is what I told our landlord from Kensington.   Return on investment is everything.   So, property values in Stamford have risen in the last year by 4.2% which means the current annual return on investment in Stamford for a typical 2 bed house is 8.82% a year. Now that’s not bad!

Each week I post on this blog what I consider to be the week’s 3 best buy-to-let deals in the area, irrespective of which agent it is being marketed with.   But if you have an existing property, or have seen another great buy-to-let property and would like my opinion, please do get in touch.

David@upp-property.co.uk or call my office on 01780 484 554
 


Monday, 21 March 2016

This week's 3 best buy-to-let deals in Rutland and Stamford are...

Property 1: Finkey Street, Oakham. £189,000
2 Bedroom Terraced House marketed via Murrays Estate Agents 
 
 

Expected rental income of £625pcm. Located within a short walk to both the town centre and the train station; these terrace properties are a fantastic purchase.
 
This one appears to be in very good condition, so no refurbishment needed which should be an attraction.
 

Sale Price: £189,000
Approx. Rent: £625pcm
Call: Murrays Estate Agents on 01572 366 021



Property 2: Kings Road, Oakham. Guide Price £149,950
2 Bedroom Terraced House marketed via Moores Estate Agents
 
 
Another fantastic rental purchase. This property is located the other side of the train station off Cold Overton Road. The expected income with this property is c£595pcm and would appeal to the “young professional” sector of the market. A really sound investment.
 
 
Guide Price: £149,950
Approx. Rent: £595pcm
Call: Moores Estate Agents on 01572 366 023
 
 
 
Property 3: Churchill Road, Stamford. Guide Price £190,000
3 Bedroom Semi-Detached House marketed via Knight Partnership.

The Stamford market offers a lack of good rental property, but this one stands out because of the location, yield return and capital growth. A really good 'all rounder' at £695pcm and with the demand for this type of property particularly strong in Stamford, it is the best investment I can find this week.

Guide Price: £190,000
Approx. Rent: £695pcm
Call: Knight Partnership on 01780 695 019


Alternatively, if you have spotted another interesting investment property and would like my opinion and rental valuation, please contact me via david@upp-property.co.uk

Friday, 18 March 2016

Stamford buy-to-let sees returns of 8.82% in 2015


I recently got chatting with one of my ‘out of town’ landlords who was back in Stamford visiting his family.
 
Brought up in Stamford, he went to Stamford School in the 1970’s and is now a University Lecturer in central London.

To enhance his retirement, he has a small portfolio of 4 properties in the town and wanted my advice on where to buy the next Stamford property. 

He lives in a college owned flat in Kensington and would never dream of buying there - the average value of a flat is £1.62m and a town house is £4.1m!

Before I could advise him, I reminded him that the most important thing when considering investing in property is finding a property with decent rental yields for income returns, yet at the same time, it must have the potential for capital growth.

This year, 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 many landlords often overlook is the propensity of how likely the rent will increase.  Interestingly, the average rent of a Stamford property currently stands at £775pcm, 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 Stamford property currently stands at £298,400, meaning the average yield stands at 3.12% p.a., which on the face of it, many landlords would find disappointing.  That is the problem with averages, if we look at 2 bed houses in Stamford which are the sort of properties a lot of landlords buy, the average value of a 2 bed house is £183,300, whilst the average rent for a 2 bed house is £705 per month, giving a yield of 4.62%.

However, if that isn’t high enough, there are a few landlords in Stamford 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 call 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, and that is what I told our landlord from Kensington.   Return on investment is everything.   So, property values in Stamford have risen in the last year by 4.2% which means the current annual return on investment in Stamford for a typical 2 bed house is 8.82% a year. Now that’s not bad!

Whether you are a soon to be new landlord or existing seasoned landlord in Stamford, you might be interested in a blog about the Stamford Property market, where you will find similar articles to this one about what is happening in the Stamford Property market.

The web address is www.rutlandandstamfordpropertyblog.co.uk  .... and to answer the question on what he should buy, on the same blog I post what I consider to be the week’s 3 best buy-to-let deals in the area, irrespective of which agent it is being marketed with. 

Maybe you should visit the blog as well?

Monday, 14 March 2016

This week's 3 best buy-to-let deals in Rutland and Stamford...

Property 1: All Saints Place, Stamford.  £199,950
2 bedroom character property for sale.  Goodwin Property Services.

 
Focusing on the Stamford rental market, we start with this period town house. Located opposite All Saints Church and in the heart of the market square, this property would make a fantastic buy-to-let investment. Expect a return of £695pcm with this property and longevity with young professional tenants. Excellent purchase.

Purchase Price: £199,950
Approx. rental: £695pcm
Call: Goodwin Property Services on 01780 695 007
 
 
Property 2: Cromarty Road, Stamford.  OIEO £200,000
3 Bedroom semi-detached home for sale.   Sharman Quinney.

 
Another sound investment has popped onto the market this week. These semi-detached properties are a great investment and we expect to let this style of property to young families. Ideally located for local schools and within walking distance to the town. Market rate at present is £695pcm but could creep up to £750-795pcm purely because of the shortage of rental properties available at present.

Purchase Price: OIEO £200,000
Approx. rental: £695pcm - £795pcm
Call: Sharman Quinney on 01780 695 010


Property 3: Sculthorpe Close, Oakham.  Guide Price: £159,950
2 Bedroom penthouse for sale.  UPP Property Agents.

 
"Location, location, location" as they say!! Available with contented, respectful tenants in place and with an expected rental income of £575pcm this property has come onto the market this week.
 
It is being sold by a small time investor and would love for the current tenant to remain at the property, purely because of how well they looked after the property in their 3 years of occupation.
 
A rare find in the Oakham rental market.
 
Purchase Price: Guide Price £159,950
Approx. rental: £575pcm
Call: Adrian McCarthy, UPP Property Agents on 01572 725 825
 
Alternatively, if you have seen another great buy-to-let property and would like my opinion, please contact me via david@upp-property.co.uk or call me on 01780 484 554.
 
 
 
 

Friday, 11 March 2016

958 Stamford homes bought by private landlords in the last 20 years. Is this the end for first time buyers?


There I was, out with the family at Burghley House last weekend, when a smart gentleman approached me. “Hello”, he said, “You’re the writer of the Stamford Property Blog aren’t you? We met at the local Business Networking event in Stamford a few months ago”.
 
I then recognised him and, whilst I won’t mention his name, he runs a small but perfectly formed and well-known independent retailers in the town ... It’s amazing who you see when out walking!
 
Anyway, whilst the other half was sorting out things with the family and the dog, we seized the opportunity for a chat.

He wanted to know my thoughts on the future of the Stamford property market, and I would now like to share with you that conversation…

People are always going to need a roof over their heads – it’s a necessity for every single person. The 22-30 year olds of the town have a choice to what type of roof they have; they can rent from the local council, they can rent from a private landlord or finally they can get a mortgage and buy their own home. In the 1970’s/80’s and 90’s, the expected thing was to save like mad for a few years for the deposit (going without luxuries) whilst living at home, or rent a cheap terraced home for a few more years and then go on to buy their first house.

However, more recently fewer Stamford youngsters have been buying, choosing to rent instead – mainly from private landlords (as councils have been selling off council housing on the ‘Right to Buy’ Schemes).

Twenty years ago Stamford was a different place. There were 7,623 households in Stamford and 4,892 of those were ‘owner occupied’. Move to the present day, and with all the building in the town, the total number of households has increased by 17.9% to 8,994 and quite surprisingly (to me at least), the number of owner-occupiers has increased to 5,881 (although as a proportion, it is only 65.3% compared to 64.1% twenty years ago).

However, it’s the rented sector that is truly fascinating.  Twenty years ago, only 539 properties were privately rented in Stamford, and now there are 1,497, a rise of 958.

The twenty-somethings’ housing difficulties haven’t been helped by the local authority selling off council housing, with the number of council houses dropping from 1,534 to 1,170 over the same twenty year period.

Demand for decent rented property remains high, as Cameron’s much vaunted house building program is years away and has decades of under investment to catch up on before it starts to affect demand.

Even with the Buy-to-Let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing Stamford residents and those landlords who educate themselves and treat it as a business will survive and prosper.

The best way Stamford landlords can protect their income from property (and mitigate the effects of the tax rises) is to keep the homes they let out in ‘Grade A’ condition. I have found, especially over the last 3 or 4 years, Stamford tenants have ever growing demands from their rental property, but many are prepared to pay ‘top dollar’ for houses and apartments that meet their increasingly high expectations.

You must not forget, letting property is a business, so all private landlords should also seek the advice, opinion and commentary of property professionals who are talking to prospective tenants on an hourly basis, and who can share their valuable feedback before costly errors are made.

And just as the other half had sorted the family, my smart retailer friend asked “What about the Stamp Duty changes for Landlords coming in April”? My thoughts are that with such low supply (i.e. numbers of property for sale), and high demand it is hard to imagine Stamford property values will see much impact – but I predict, ever so slightly, the proportion of owner occupiers should increase slightly compared to ‘buy-to-let’ landlords in the coming decade and the housing market should return to balance.

For more in-depth thoughts on our local property market, please look at the archive library of articles on this blog. 

Monday, 7 March 2016

This week's best Buy-to-let deals on the Rutland and Stamford property market..


Property 1)
4 Bedroom Detached House - Harriers Close, Cottesmore  £205,000
 
Family homes are hugely popular in today’s market. This property is brilliantly placed in Cottesmore which is highly sought after by the military rental sector. Currently achieving £740pcm and with a market for this property to achieve c£775pcm - £795pcm which would bring in a yield of 4.7% and the added benefit of capital growth. A solid investment for all first time landlords out there.

Purchase price: £205,000
Rental: £740pcm currently, could achieve £775-£795pcm
Call: Murray Estate Agents on 01572 366 021



Property 2)
2 Bedroom Semi-Detached House, Withers Close, Oakham £175,000
http://www.rightmove.co.uk/property-for-sale/property-40351146.html
 
Positioned within a good walking distance to the town centre and train station, these modern semi-detached properties are an excellent investment. They are modern, low maintenance and attract long term tenants which is is worth an extra £50pcm in their own right. Generating an income of c£595pcm - £625pcm this property is definitely one to consider.

Purchase price: £175,000
Rental: Approx. £595pcm - £625pcm
Call: Spencers Estate Agency on 01572 366 022
 

 
Property 3)
3 Bedroom Semi-Detached House, Kesteven Road, Stamford £189,950
 
A magnificent purchase for both the rental market and capital growth. The property itself could be extended very easily to provide 4 bedrooms but it is still a very big 3 bed semi detached as it stands.

I’d expect a return of £750pcm on this property and with the added benefit of a recently replaced boiler, double glazing and new conservatory the cost of owning this property long term would be low in comparison to other properties available. 


A hidden gem in the market at the moment.
 
Purchase price: £189,950
Rental: Approx. £750pcm

Call: Adrian McCarthy
UPP Property Agents on 01572 725 825
 
 

Friday, 4 March 2016

£200,000 inheritance - Is buying Oakham property still the best place for a windfall?


I had an interesting email from someone in Oakham a few weeks ago that I want to share with you (don’t worry I asked his permission to share this with you all).

In a nutshell, the gentleman lives in Oakham, is in his mid-60’s and still working. He has a decent pension, so that when he does retire in a couple of years’ time, it will give him a comfortable life. 
 
He has recently inherited £200,000 and told me one option was to put the amount into a savings account.
 
The best he could find was a 2 year bond with the Post Office which paid 1.9%; meaning he would get £3,800 in interest a year. Another consideration was to buy a property in Oakham to rent out and he wanted to know my thoughts on what he should buy, but he had concerns as he didn’t want to take a mortgage out at his time of life. He was also worried about all the tax changes he had read about in the papers for landlords.
 
Notwithstanding the war on Oakham landlords being waged by George Osborne, the attraction of bricks and mortar endures for many. As our man is a cash buyer, he would not have to deal with the intricate cut to mortgage interest tax relief that will diminish, or even eradicate, the profits of many Oakham landlords. It’s true he would face the extra 3% in stamp duty to buy a second property, but with some good negotiation techniques, that could soon be mitigated.

I told him that buying an Oakham buy-to-let property is all about the total return on investment. True, he could put the money in the Post Office bond and receive his interest of £3,800 a year or, as he rightly suggested, invest in property in Oakham. The average yield (yield being the equivalent of the interest rate on the property) at the moment in Oakham is 3.95% per annum, meaning our potential first time landlord should be able to, depending on what he bought in the town, earn before costs £7,900 a year. However, I told him there are plenty of landlords in Oakham earning half as much again (if not more) if he was willing to consider more specialist investment types of properties.  Again, if you want to know where, please look at my blog or drop me an email.

The bottom line is that the success of investing in Oakham buy-to-let property versus a Post Office savings account (or whatever Bank or Building Society is offering the best rate) will depend on the performance of those assets. Unlike with a savings account, with property the capital you invested can also go up (and yes, it can go down as well – more of that in second).

Property values in Oakham have risen in the last 12 months by 1.6% meaning, that if our chap had bought a year ago, not only would he have received the £7,900 in rent, but also seen an uplift of £3,200 … meaning his overall return for the year would have been £11,100 (not bad when compared to the Post Office!).

Ah, but the doom mongers amongst you will say property values can go down, as they did in 2008, and in 1988 and 1979. Yes, but after 1979, prices had bounced back to their 1979 levels by 1984 and went on to grow an additional 58% in the following 4 years. Then again, they dropped in 1988 and did take 13 years to reach back to those 1988 figures, but the following 6 years (between 2001 and 2007) they then increased by an additional 66%.

Now, according to the Land Registry, average property values in Rutland currently stand 0.14% above the January 2008 level, and anecdotal evidence suggests that in the nicer parts of Oakham, we are well above these sorts of levels. Therefore, all this talk of property crashes is unfounded.

So, what would that £200,000 windfall get you in Oakham? A decent 2 bed semi in Barleythorpe, a really nice 3 bed end terrace in Oakham or a fantastic 3 bed detached in Cottesmore.

In fact, the world is your oyster. But which Oyster? Well, my blog reading friends, if you want to read similar articles like this and what I consider to be the very best of buy-to-let deals in the area, irrespective of which agent is selling it, then you need to visit the Oakham Property Blog  www.rutlandandstamfordpropertyblog.co.uk