Tuesday 29 December 2015

Lovely 2 bed end terrace in Warrington for Buy to Let...7.6% yield

I saw this property this morning and thought it looked a little bit tasty, so I wanted to share it with you all.

It's a well presented 2 bedroom end terraced at the bottom of Fairclough Street, big ticks on the location front. Looking at the photos, the condition looks to be pretty good and well presented, another big tick on the letting front!

I would expect a property like this to be let for at least £475 pcm, which if you calculate it against the asking price of £75,000, could potentially generate you an annual yield of 7.6%. This would be an ideal rental for a small family or couple. 

Looking through the pictures I cant really see anything that starts to ring alarm bells. Maybe stuff may need stripping out int he bedroom however overall this looks like it is ready to let after a little bit of TLC.

The last two bedroom house in this area sold for £88,000 Below is a link to that property and the condition it was in when sold.

If you would like any advice on a particular property you have seen and wanted an honest opinion on what it would rent for, feel free to pop the web link on an e-mail to me. manoj@hamletwarrington.co.uk or give me a call on 01925 235 338

Happy hunting!

Thursday 17 December 2015

Has 2015 been a good year for Warrington landlords?

This is a question I have been asked often over the last few weeks by landlords.

I think most of you will give a resounding yes to this question!

Substantial property value increases have given good capital growth to most landlords, by tens of thousands of pounds in many cases.

 Improved income through increased rents and reduced void periods has benefitted most.

Further, many landlords have been able to reduce costs by re mortgaging and taking advantage of the many low fixed rates available in the mortgage market, protecting their cost base for the future against an impending rate rise.

Some landlords have taken advantage of the above positive factors and added to their portfolio through 2015.

However there are a few clouds on the horizon. Extra Stamp Duty for second home purchases, changes to tax relief for buy to let landlords, extra costs for landlords to meet the raft of new and pending legislation.

Many of these factors are not news… we are all aware and they have been much reported in the media. But what we are not sure of is the impact they will have on the market.

Miles Shipside Rightmove Director ‘this is December’s best post-financial crash performance, signalling another round of price rises in 2016. Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up. Although the average price of property coming to the market is already up by a hefty 7.4% compared to a year ago, Rightmove forecasts that prices will reach and breach new records next year’.

Rightmove’s 2016 forecast is for new seller prices to rise by 6%.

Will there be an assault on the market from landlords trying to buy before the new Stamp Duty regime applies in April?

Will first time buyers hold back from buying until after April in the hope prices will reduce once the new Stamp Duty puts landlords at a financial disadvantage and the competition for stock is reduced?

Will there be a rush of landlords through 2016 trying to sell and reduce their gearing in light of pending tax changes? Will this new stock be in sufficient volume to drive down prices as supply outstrips demand?

Will America put up interest rates and will we follow? Or will Janet Yellen back off at the last minute as previously?

I imagine we each have our own views. What we do about it will depend on our own prevailing circumstances and financial situation…I would love to hear from you with your opinions.

Some landlords I have spoken to recently have some interesting thoughts. One landlord intends to invest money into his existing portfolio by moving kitchens into the lounge and where possible turn the kitchen in to a bedroom making one bedroom units into two bedroom units and enhancing the rent (reflecting many of the new builds/conversions that have a similar layout).

Another is remortgaging his whole portfolio to fixed rate schemes with a view to driving his expenses down to offset any increase in his tax bill.

Interestingly I have not spoken to any landlord that intends to sell his portfolio, after all most of us bought a buy to let for the long haul…either to help our retirement income in years to come or in many cases to help  our children when the time comes.

Whatever your view as always it is essential to buy right. There are very few bargains to be had but buying a property that will let well and have a good chance of sensible value growth is essential. There are many new flats on the market and many more waiting to come to market, all at high prices. Whilst these will let well I struggle to see the option for capital growth being as good as a freehold house where supply is much more limited.

As always the Warrington Property Blog will keep you touch with market trends.

If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Warrington Property Market together with regular postings on what I consider the best buy to let deals in Warrington, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch!  email me on manoj@hamletwarrington.co.uk  if you are in the area feel free to pop into the office we are based on6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News. 

Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Tuesday 15 December 2015

Absolute Gem with multiple strategies for investors in Warrington

Good Afternoon, so I spotted this property a few weeks ago and I thought it would have been taken off the market immediately.

This is a large two bedroom terraced on Wellfield St (very popular rental street), close to schools shops and town. It is one of the most lucrative rental streets in Warrington. Usually a 2 bedroom house on this street will bring in around £495pcm.

The house does need completely gutting. You are looking at around £20k refurb. However take a look at a similar size property which sold for £120k on the same street.

If done to this standard (spending more than £20k) this can be a great project for an investor looking to flip, or a cracking btl investment spending around £20k and getting it to a let standard. It would achieve a yield of 8.4% with a rental income of £495pcm providing you purchase the property at £50k + £20k works. Providing the property is valued around £100k once the works are done, you can then remortgage leave 25% in (btl deposit) and use the money pulled out to find the next deal.

I know that Warrington has become very popular with the Rent to Rent practise - my opinion is there is a saturation of this strategy in Warrington and due to this the demand for room shares has dropped, you can look at this as an option by converting the reception rooms into bedrooms and building a small corridor through reception room two into the kitchen - also splitting the large front room upstairs into two small doubles. This can then become a 5 bedroom hmo each room achieving around £80pw/ £346pcm.I cant stress enough that if done to a basic level you will have a lot of void with this strategy, I have noticed that people who room share are now looking for en suites and will pay that bit extra to find these rooms.

If you would like to chat about any of the above in more detail then feel free to give me a call on 01925 235 338 or drop me and email on manoj@hamletwarrington.co.uk better still if you are in the area then feel free to pop into my office for a chat, we are based on 6 Bankside, Crosfield street, Warrington, WA1 1UP. The kettle is always on and there is plenty of free parking outside our offices.

Thursday 10 December 2015

The Warrington Property Market and £1,300,000,000,000,000,000 in loose change

The 5th of March 2009 was the date Mervyn King, the then Bank of England Governor, slashed UK interest rates to the unparalleled figure of 0.5%. In just under five months, starting on 8thOctober 2008, the rate had come down from 4.5% to that low figure, all in an attempt to ensure the British economy survived the worldwide credit crunch. Now as we deck the halls with bows of holly nobody expected that, over six years later, rates would still be at that low level.

In the summer, people were predicting a rise in the New Year, yet now, some forecast it may remain the same for years to come due to the issues in China. Now, I am not some City Whiz kid with a hotline to Mr Carney at Threadneedle Street, but merely a humble letting agent from Warrington, so I cannot profess to know what will happen to interest rates. However, what I do know, speaking to my Warrington friends and Warrington landlords is that these low interest rates have hit savers really hard.

If you added up everyone’s bank and building society savings in the UK, they would add up to £1,300,000,000,000,000,000 (that’s £1.3 trillion), most of which is earning a pittance in interest.  That is why more and more 40 and 50 year old Warrington landlords have been investing some of that cash into Warrington bricks and mortar, as they search for a low risk investment opportunity.

Buying an Warrington buy to let property is not risk free, but there are certainly things you can do to mitigate and lower exposure to risk. Buying a rental property potentially offers an enigmatically decent proposition in terms of being able to obtain attractive returns that beat inflation and savings accounts, yet without taking the levels of risk associated with stock markets.

The UK residential property market has long been the safest form of collateral for lenders of all varieties. Against a backdrop of a greatly changing economic environment, Warrington house prices have been extraordinarily robust, increasing by over 2148% between 1974 and today. Some will say there have been significant property price falls, namely in 1975, 1988 and 2008, yet each time this has been followed by an upturn in property values. For the record, the stock markets in the same time frame only rose by 432.5%!

... and that is the best thing about buy to let property. Unlike the stock market, with its unfathomable equities, shares and bonds, that nobody really understands (apart from some faceless whizzkids in Canary Wharf!) with a buy to let property, landlords can take control and understand their investment .. in fact you can touch and feel the bricks and mortar investment.

...  but before you go out and buy any old Warrington property, plenty of landlords still get it wrong. You have to be aware of your legal responsibilities when it comes to tenant safety, tenants deposits, energy certificates and in the new year, landlords will have the added responsibility of checking the immigration status of prospective tenants. Get it wrong and big fines and even prison is an option – but that is why many agents use a letting agent to manage their property for them. Even then you need to be careful with your choice of agent!

Research is key before investing in a property in any town, finding a good local agent is key as they can point out where the high yielding in demand properties are and where the properties with future growths will be.

I have created an Area Analyser which breaks down towns by their postcode areas, using up to date information from Rightmove you can look at what areas in a town like Warrington are giving you the best return on investments, which size properties are in demand for rentals and sales and much more. Below is a link to the Area Analyser Article with a video on how to use the data.

Area Analyser Article

Area Analyser Video + Spreadsheet 

Using the Area Analyser will help you  buy the right property at the right price. Recently I have seen some situations in Warrington and the immediate area, where people pay way too much for a property, only to lose out when they come to sell.

I cannot stress enough the importance of doing your homework. One source of information and advice is the Warrington Property Blog where I have similar articles to this about the Warrington property market. If you have not visited and you are interested in the local property market in Warrington ... you are missing out!

If you need any more guidance on how to use the spreadsheet feel free to give me a call or better still pop into our office with your laptop and Me and my Colleagues will be happy to talk you through the whole spreadsheet. Our office is located at 6 Bankside, Crosfield St, WA1 1UP. (plenty of free parking available) you can call me on 01925 235 338 or drop me an email on manoj@hamletwarrington.co.uk

Don't forget to visit the links below to view back dated deals and Warrington Property News. 
Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Thursday 3 December 2015

Warrington Property Market - Asking Prices Drop but Values rise

Those of you who regularly read my weekly articles in the Warrington Property Blog will know I like to keep abreast of the Warrington property market. Something attracted my attention this week about the local property market, something I wanted to share with my many readers.

Over the last month, there appears to have been an anomaly in the local property market, whereby asking prices in the town have dropped, yet property values have increased.  The average asking price of a Warrington property, according to Rightmove, fell 1.4% this month yet the average value of a Warrington property rose by 0.7%.

So how does this relate in monetary terms?  This anomaly has driven the average asking price of a Warrington property down slightly to £140,300 whilst the average value is now £110,600.

So why the difference? Technically an ‘asking price’ can be any price that a homeowner wants to place his or her property on the market for. Unfortunately, many times this is done without research and can result in overpriced properties that don't sell. As the Summer months are normally slightly quieter those left on the market wanting to sell often temper their asking prices in these months to try and generate interest in their property.

On the other side of the coin, the property ‘value’ is the price that a willing buyer is prepared to pay and a willing seller is prepared to sell at.   Therefore, in a nutshell, Warrington property values are continuing to rise and those homeowners in Warrington who have properties on the market, last month on average, reduced their asking prices .. great news for property owners and buyers alike!

In previous articles, I have spoken about the continued fundamental shortage of property coming on to the market compared to buyer demand. That is especially true for homeowners wanting to upgrade to a better house/better location.  I can appreciate Warrington home owners are reluctant to put their own property on the market speculatively and wait for the right property to become available and some high demand locations can suffer from a property stalemate.

Most homeowners don’t want to sell and have nothing to buy.

But that’s the beauty of the much maligned English and Welsh house buying process. You can find a purchaser for your property, then ask them to wait. By agreeing a sale (subject to contract) before you try to buy sounds concerning to many, but with fewer properties for sale you need to have a buyer for your property or you will be treated as a less serious buyer yourself. If you cannot find the right home for you, you can slow the deal with your purchaser until it comes along. If nothing suitable does comes along and you lose your buyer then the worst outcome is that you have to find another purchaser or take your property off the market and stay put for now, and as long as you mention this at the start they must not commit to any costs until you have agreed your onward purchase.

However, for the landlord/buy to let investors, these potential problems are nothing further from the truth. As I write this article, there are 189 flats for sale, 357 terraced houses and 353 semis for sale in Warrington.  Landlord/Buy to let investors can normally pick up some bargains in the Autumn months, as sellers who are selling their homes often have a pressing need to sell by this time.

The types of houses a Warrington landlord typically buys, are not the same types as the homeowners wanting to move to a posh area of the town as they are attracted by larger semis and detached properties. The best types of properties for buy to let are the smaller flats, terrace and semis (not the big detached ones). There are in fact many of these smaller properties for sale .. just look at the numbers of properties for sale (mentioned in the previous paragraph).

If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Warrington Property Market together with regular postings on what I consider the best buy to let deals in Warrington, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch!  email me on manoj@hamletwarrington.co.uk  if you are in the area feel free to pop into the office we are based on6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News. 
Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Thursday 26 November 2015

Wellfield Street property out performs Castle Green in Warrington by nearly 45%

Last week, a couple from the Appleton area came to discuss potentially investing in Buy To Let property. They were in town starting their Christmas Shopping when they decided to take me up on my offer of popping in for a chat. I really do enjoy it when people take me up on this offer especially if the person is a first-time investor. There is a lot to consider before investing in property.

One of the most important considerations you will make before investing is the balance between annual return/yield and the annual value increase/capital growth. Castle Green on the Kingswood Estate was built by McLean Homes in the early 1990’s, as one of Warrington premier roads to live on. It is one of the most sought after places to live on the West side of Warrington. The average three bedroom semi-detached house sells at around £220,000 and rents are roughly £900 per calendar month.

With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Wellfield Street, in Warrington, have outperformed those on Castle Green. This is because a three bedroom semi-detached house on Wellfield Street just off Lovely Lane can be bought for around £85,000) and the achievable rents can be around £550 per calendar

The yield which could be achieved from a property on Wellfield Street is around 7.7% per year. When we compare this to the possible 4.9% on Castle Green, it is nearly 45% higher on Wellfield Street. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bedroom semi-detached house on Wellfield Street in 2000 was £49,950 which has since risen by 41% in the last 15 years. A three bedroom semi-detached house on Castle Green in 2000 was £104,000, meaning the value has increased by an impressive 111% in the same 15 years.

If you would like to know more about the Warrington Property Market, then for more articles like this, please keep visiting my Blog weekly - if you would like to join my monthly email list email me on manoj@hamletwarrington.co.uk and I will send you a pdf newsletter once a month with research I have wrote regarding the Warrington property market, if you are in the area feel free to pop into the office we are based on6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view backdated deals and Warrington Property News. 

Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Thursday 19 November 2015

Warrington Tenants Pay 36.35% of their Salary in rent

I had an interesting chat with a local Warrington Accountant yesterday about my thoughts on the Warrington property market. The subject of the affordability of renting in Warrington came up in conversation (there’s a surprise) and how that would affect tenant demand. Everyone wants a roof over their head, and since the 1940s, owning your own home has been an aspiration of many of us.  However, with rents at record highs, many are struggling to save enough for a house deposit.

Let’s be honest, it’s easy to get stuck in a cycle of paying the rent and bills and not saving, but even saving just a small amount each month will sooner or later add up.  George Osborne announced such schemes as the upcoming Help to Buy ISA, where the Government will top up a first-time buyers deposit.

I thought I would do some research into the Warrington property market and share with you my findings.  Warrington tenants spend on average just over a third of their salary to have a roof over their head.  According to my latest monthly research, the average cost of renting a home in Warrington is £650 per month.  When the average annual salary of a Warrington worker stands at £21,458 per year, that means the average Warrington tenant is paying 36.35% of their salary in rent.  I doubt there is much left to save for a deposit towards a house after that, and that my Warrington Property Blog reading friends is such a shame for the youngsters of Warrington.

You see one of the reasons for rents being so high is property prices being high.  As I have mentioned before, there is a lack of new properties being built   It’s the classic demand vs supply scenario, where demand has increased, but the number of houses being built hasn’t increased at the same level.  Also, Warrington people aren’t moving home as often as they did in the 80’s and 90’s, meaning there are fewer properties on the market to buy.  If you recall, a few weeks ago I said back in Winter 2007, there were over 1,600 properties for sale in Warrington and since then this has steadily declined year on year, so now there are only 354 for sale in the town.

So, the planners in Warrington haven’t allowed enough properties to be built in the town and existing Warrington homeowners are not moving home as much as they used to, thus creating a double hit on the number of properties to buy.  This is a long term thing and the continuing diminishing supply of housing has been happening for a number of decades and there simply aren’t enough properties in Warrington to match demand. These are the reasons houses prices in Warrington have remained quite buoyant.

However, things might not be all doom and gloom as originally thought, as a recent Halifax Survey  (their Generation Rent 2015 Survey) suggested  more and more people may be long-term, if not lifelong tenants. In fact there is evidence in the report to suggest that the perception of how difficult it is to get on the housing ladder is vastly different between parents and people aged 20 to 45.  It seems from this survey that the state of the UK economy has shifted priorities quite significantly in quite a short space of time.  With fewer people able to save up the deposit required by mortgage lenders, more and more people are continuing to rent.  This delay in moving up the property ladder has driven rents across the UK up as more people are seeking rental properties.

 It is often said that more people in central Europe rent for longer or never own their own property. The last two census in 2001 and 2011 show that proportionally the percentage of people who own their own home in Britain is slowly reducing and, as a country, we are becoming more and more like Germany.   That isn’t a bad thing as Germany is considered to have a more successful economy, one of the main stays, often quoted,  is because they have a much more flexible and mobile workforce, (which renting certainly gives) and from that, they have a higher personal income than in the UK.

Therefore, if we are turning into a more European model and the youngsters of Warrington and the Country have changed their attitudes, demand for rental properties will only and can only go from strength to strength, good news for Warrington tenants as wages will start to rise and good news for Warrington landlords, especially as property values in Warrington are now 8.8% higher than a year ago!

If you would like to know more about the Warrington Property Market, then for more articles like this, please keep visiting my Blog weekly - if you would like to join my monthly email list email me on manoj@hamletwarrington.co.uk and I will send you a pdf newsletter once a month with research I have wrote regarding the Warrington property market, if you are in the area feel free to pop into the office we are based on6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News. 

Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Wednesday 18 November 2015

Cartwright Street Warrington potentially yielding 7.4%

Good Afternoon Warrington property hunters, take a look at this property up with our friends over at Ashtons in Great Sankey.

This is a 2 bedroom mid terraced on Cartwright Street in Warrington - this street is just off Lovely Lane and about 5minutes walk to the Hospital. So this gives you a good idea of location. The property is 10 minutes walk to town and has a co-op and spar in 5 minutes walking distance, the house is also close to schools.

Other than laying some carpets on a few of the floors the house is pretty much in a ready to let state. A property in this area will let for around £495pcm and as the property is on the market for £79,995 you will achieve a yield of 7.4% however (always a however) a property on the same street finish to a much higher standerd sold for £76,500 althought the property is slightly smaller it has some perks for examaple a large kitchen downstairs and an upstairs bathroom rather than a downstairs bathoom.

It is worth negotiating the the price before you purchase, dont be expecting much capital growth with this property in the future (peak around £93k - in 2004) so if your after some cashflow then this is your property providing you negotiate a good price with the vendor.

Like always feel free to drop me an email or give me a call and I can guide you much more clearer that way - I am happy to attend viewings with you to give you my thoughts on this particular property or any other properties you have seen around Warrington.

If you are in the area then feel free to pop in for a chat we are based at 6 Bankside, Crosfield St, Warrington, WA1 1UP the kettle is always on! you can also send me any property links you have to my email address which is manoj@hamletwarrington.co.uk I will be able to give you my opinion on them before you arrange viewings.

Dont forget to visit the links below to view back dated deals and Warrington Property News. 

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents

Thursday 12 November 2015

How EU Migration has changed the Warrington Property Market

The argument of migration and what it does and doesn’t do for the Countries economic well being is something that had been hotly contested over the last few years. More so as the EU referendum closes in on us. In my article today, I want to talk about what it has done for the Warrington Property market.

Before we look at Warrington though, let us look at the some interesting figures for the country as a whole. Between 2001 and 2011, 971,144 EU citizens came to the UK to live, and of those, 171,164 of them (17.68%) have bought their own home. It might surprise people that only 5.07% of EU migrants managed to secure a council house. However, 676,091 (69.62%) of them went into the private rental sector. This increase in population growth in the country has from the EU, no doubt, has added fuel to the UK housing market.

Looking at the figures, the housing market which undoubtedly is the strongest effected by migration has been the private rented housing sector, especially in those areas where migrants come together and indeed, I have seen that many EU migrants often compete for such housing not with UK tenants, but with other EU migrants. In 2001, 3.68 million rented a property from a landlord in the UK. Ten years later and by 2011, whilst EU migration added those additional 676,091 people who rented a property from a landlord, an additional 4.14 million people who become tenants were not EU migrants, but predominately British!

As a landlord, it is really important to gauge the potential demand for your rental property, especially if you are a landlord who buys property in areas popular with the Eastern European EU migrants. To gauge the level of EU migration (and thus demand), one of the best ways to calculate the growth of migrants is to calculate the number of people who ask for a National Insurance number (which EU members are able to obtain).

Interestingly, in Warrington, migration has been steady over the last few years. For example, in 2007 there were 1,502 migrant national Insurance cards (NIC) issued and the year after in 2008, 938 NIC cards were issued. However, in 2014, this had risen to 1,425 NIC’s. However, if the pattern of other migrations since WW2, over time there will be increasing demand for owner occupied property, which may affect the market in certain areas of high migrant concentration. On the other hand, over time some households move into the larger housing market, reducing concentrations and pressures.

In essence, migration has affected the Warrington property market, it couldn’t fail to because of the additional 12,584 working age migrants that have moved into Warrington area since 2005. However, it has not been the main influence on the market. Property values in Warrington today are in fact 1.3% lower than they were in 2005. According to the Office of National Statistics, rents by tenants in the Warrington area have only grown on average by 0.69% a year since 2005 .... I would say if it wasn’t for the migrants, we would be a fair worse position when it came to the Warrington property market. This is backed up by the then Home Secretary Theresa May back in 2012, that more than a third of all new housing demand in Britain is caused by inward migration and that there is evidence that without the demand caused by such immigration, house prices would be 10% lower over a 20 year period.

If you would like to know more about the Warrington Property Market, then for more articles like this, please keep visiting my Blog weekly - if you would like to join my monthly maillist email me on manoj@hamletwarrington.co.uk and I will send you a pdf newsletter once a month with research I have wrote regarding the Warrington property market, if you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News. 

Website, http://www.hamlethomeswarrington.co.uk/

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors

Thursday 5 November 2015

Warrington property market review for October 2015

It's that time again for a review of what has been happening in the sales & lettings market in the Warrington area throughout October 2015 (figures obtained from Rightmove and do not include private lets):

From the October rental figures above, all types and sizes of property have either the same or fewer available right now when compared to this time last year, with the exception of 1 beds of which are almost 27% more numerous now than last year - however, anyone looking for such a property will also know that smaller, cheaper properties such as these get snapped up virtually instantly, so although there were more available, they were off the market in record time (we often let such properties within a week or 2 at the most). Houses with 2 & 3 bedrooms continue to dominate the market at virtually the same ratio as last year, but at the top end it is the larger properties that have really fallen, with 12% fewer 4 beds and an amazing 30% fewer 5+ beds (just 7 were even listed across the whole of the market).

The size of the rental market is virtually the same size as it was a year ago however demand has increased significantly as private renting is fast becoming the default option for almost all of the next generation - they know what they want and how much to pay, but they won't be taken for fools and just rent any old thing.

So, as an investment property, what should you buy to maximise your exposure to the broadest possible market?  Isn't it better to look for trends in the current market and see where to hit demand head on?

Demand is always strong for rentals consisting of up to 3 bedrooms, with this end of the market accounting for 75% of everything that is out there right now. If you had money to spend on a buy-to-let property I would certainly not invest in anything larger than a 3 bed house, demand just is not there. In fact, 2 bedroom houses and flats alone accounted for over 36% of the total by themselves, and this is consistently the peak of the market for rental demand, month in and month out. Rents on most 2 beds are now in excess of £475 PCM, significantly more so for really well appointed properties which can approach and now in some cases exceed £525 PCM. Even 1 beds are now regularly advertised at around £425 PCM and many are achieving above this without a problem. Now summer is behind us, there will be a push for the next 6-8 weeks as people try to move before Christmas, as nobody wants to risk not being moved or worse still, being homeless at that time of year. 

On the sales side of the market, there was an increase of 53 (7%) for sale, with more or the same number available in all sizes except for 1 beds which increased by a staggering 33%. This is partly due to the meteoric resale price rises, and landlords or owners wanting to release the cash, with 1 bed houses shooting from around £55k to £65k in a little over a year, with the whole market now seeing an average rise across all house sizes of 8.1% year on year. We are still seeing a continuation of the drought of decent properties that started in the new year, and the chances of finding a below market value (BMV) property right now virtually nil but not impossible, with projects, renovations and poorly presented houses still selling for what many would consider to be 'silly money', because right now everyone wants to be back on the property ladder and will pay pretty much whatever it takes in order to do so.   

If you are one of the hundreds of potential investors reading this blog daily and would like advice about what to buy next, where to buy it and what to pay, then call us now on 01925 235 338 or pop into our offices on 6 Bankside Crosfield St, WA1 1 UP for impartial and friendly advice.

Don't forget to visit the links below to view back dated deals and Warrington Property News. 

Website, http://www.hamlethomeswarrington.co.uk/

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Monday 2 November 2015

Check out the Yield and Capital in this Warrington Terrace 9.6%

Good Afternoon readers - I know the deal have not been as frequent however thats about to change, I will be posting 2 deals of the week every week. To start it off take a look at this GEM of a property.

On the market at £50k which is a steal, the location is extremely popular for renters, this is due to a selection of local schools in walking distance from each other, town centre is also a 10 minute stroll.

Anyway let's get to the nitty gritty, as I know the void on a property in this area is very low and you will get the pick of a lot of enquiries.

This is a very big 2 bedroom terraced, not just your usual two up two down. It has two reception rooms and a large kitchen to the rear. What I usually find with these properties are the bathroom tends to be downstairs and right at the back of the house which can put a lot of people off however in this case the bathroom is upstairs, as well as an extra toilet room.

As you can see from the photographs this will need a full refurb - I estimate around £10k-£15k will need to be spent on this, It may need be a case of taking it back to brick and starting again with the electrics and plumbing. So you will be looking closer to the £15k it may even be slightly more.

I believe if this refurb is done correctly then the property will achieve around £525 pcm  so if we use the figure of £15k refurb cost then you can achieving a yield of 9.6%

Take a look at another property on the same street which is very similar in terms of size and layout although there bathroom is downstairs. Sold for £120k earlier this year. This shows you that even if you spent a good £20k on getting this property to a high standard not only are you going to achieve great yields you will also achieve good capital growth.

This is a no brainer. Give the agents a call and arrange a viewing. Remember im always here to share my knowledge, if you would like me to pop along on the viewings to do my own pricing on what i think needs doing and what i think it will cost then feel free to give me a call on 01925 235 338 or drop me an email on manoj@hamletwarrington.co.uk sometimes an extra set of eyes will spot something you may have missed. I will always give you my honest opinion whether thats good news or bad news. 

Thursday 29 October 2015

Could your Warrington property save you from Pension oblivion?

If you were born in the early 1970’s or late 1960’s, if you haven’t started to think about it yet, retirement is closer than you think. In fact the number of years you have left to work is less than the number of years you have worked. The basic state pension is worth £115.95 a week for a single person in 2015/16 (or £6,029 a year) and £231.90 a week for a couple (£12,118 a year) as long as your partner has paid their stamp (although there are certain get out of jail cards if they have not). 

As a household, could you live on just over £12k a year?

However, could the property you are living in in Warrington save you from a life of financial difficulty when you reach retirement? You see, a regular income is vital in retirement, and the bricks and mortar you own in Warrington could provide a way for you to finance life when you retire.

If you are in your 30’s, instead of saddling yourself with bigger and bigger mortgages, going from your first time buyer flat, to a terraced, to the semi and then the large detached house, you could instead keep your terraced or small semi, turning it into a buy to let property. Let the rent pay the mortgage and then rely on capital growth to provide you with a lump sum when you sell the property and retire.  One of the biggest plus points of buy to let is what is known as leverage. Let me explain ... say you have a deposit of 25% and the value of the property rises by 3% a year, your gains in fact multiply to 12%.  However, if property prices drop, 'leverage' can be catastrophic, as losses will also be multiplied. Property values have dropped a number of times in the last 50 years, but they always seem to bounce back ... property must be seen as a long term investment. Equally if prices did fall you would choose not to sell ( so would not make a loss ) and continue instead to benefit from the monthly gain made from rent.

Let me explain how leverage could work for you. If you had bought an Warrington house in Spring of 1983 for £75,000, using a 75% mortgage and 25% deposit, (meaning your deposit would be £18,750). Today, that Warrington property would have risen in value to £542,842, a rise of 623.8%. However, when you look at the growth on just your deposit, the rise is even better ... instead of 623.8%, we see a rise of 2795% (remembering that the mortgage would have been paid off).

However, buy to let is not all about capital growth and in retirement, income is more important than capital growth, as rent is the key to a steady income.

So surely the best strategy is to buy those Warrington properties with the high rents (when compared to the value of the property). These are called high yield properties in the buy to let world because the monthly return is so much greater. So surely they are the best in Warrington? Possibly, but the properties that offer these higher yields (in the order of 7% to 9% per year) tend to be in areas that are not particularly desirable to live in. Historically these areas have not offered such good capital growth when compared to the town average and have a higher tendency for void periods. 

Therefore, if a high maintenance rental portfolio wasn’t for you, another strategy could be buy a property with relatively smaller rental returns of 4% to 6% per year (i.e. Chapleford Village), but in a more up desirable area. Properties such as these tend to suffer from fewer void periods (i.e. when there is no tenant in the property paying you rent) and they historically have had better long term capital growth when compared to the town average.

Every landlord is different and every property is different. All I suggest to you is do your homework. It is essential that you are buying property in areas that suit your needs, goals and desires. Talk to someone who knows the patch. This really is a key point…even as I am typing this I have broken off to speak to a local landlord who has been given advice by an agent who does not live locally and only recently has worked the Warrington market. Frankly the advice on achievable rents in certain locations he had been given were laughable!

As regular readers will know, I am happy to share my knowledge and experience of the Warrington property market, high yields, high capital growth, what to buy, what not to buy and where to buy. News and views on the Warrington Property market can always be found on the Warrington Property Blog www.warringtonpropertyblog.co.uk or you can email me on manoj@hamletwarrington.co.uk If you are in the area then feel free to pop in and meet my team over a brew we are based on 6 Bankside, crosfield street WA1 1UP the kettle is always on

Don't forget to visit the links below to view back dated deals and Warrington Property News. 

#warrington #investments #property #warrington #landlords #buytolet #property-buy #capital-growth #investments #property #property-capital-growth #warrington  #letting-agent #lettings-agent #letting-agents #lettings-agents #Investors