Check out this property, Perfect for a first time Investor 7.5% yield.

Happy Monday folks, hope you all had a good weekend. So i thought i would spend a few hours this afternoon looking at what has come available onto the Warrington property market. 

There has been too many properties to choose from however this lovely 2 bedroom on Sharp Street stood out as a perfect first time investor house. It is at great value and i'm sure they would negotiate on the purchase cost, It has been well maintained and house like this are in high demand from tenants so voids would not be a big problem.

Although im styling this as a first time btl this is a strategy many landlords i speak to stick to as its always a safe return on your investment. Property similar to this in Warrington are on the market for around £75k to £85k and if maintained to a good standard and are ready for tenants to move in, then they can start giving you a great yield. Depending on the property you're looking at 6% - 8% sometimes slightly more. This particular property will rent around £495pcm bringing a yield of  7.4%

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If you would like a chat about this in more detail, please feel free to email me on tpatel@hamlethomsproperty.co.uk or give me a call on 01925 235338, our office is just off crosfield street, 6 Bankside - next to Aldi and Icelands opposite Bank Park, if you are in the area then pop in, the kettle is always on.

Finding A Good Deal In Warrington

I was talking to one of my landlords the other day, when he explained there were no property bargains for him to buy in Warrington. We don’t sell property and don’t charge for our advice, but we can give impartial advice without any conflict of interest to our landlords.

Here is what I discovered recently about finding bargains and this is what I shared with him.

A two bedroom apartment in Chapleford Village, on Washington Drive, sold in 2007 for £155,000. In September 2011, it sold again for £130,000, a drop in value of 16.13%!

When new these were marketed as high spec properties so it just shows that to pick up a bargain you don’t need to buy a ‘doer upper’.

Back in January 2013 a three bedroom terrace on Longshaw Street sold for £65,000. In February 2008, it had sold for £95,000 making it a very good deal now.

Of course, the beauty of this particular deal is that as a landlord you would be benefiting both from a great yield and also owning a freehold property which in the long term is only ever a good thing when it comes to capital appreciation.

Whether you are a landlord of ours or not, give me a call on 01925 235 338 or email tpatel@hamlethomesproperty.co.uk  if you would like any help or advice or just a general chat about the Warrington Property Market.

Ready to go Buy To Let Investment in Warrington...

It doesn't get much easier than this... This 2 up 2 down is being sold by Edwards Grounds with the added benefit that it is a ready for tenants! This is great, as one of the worries of landlords is 'how long will it be empty before a tenant moves in' with this one, you can see it won't be a huge worry as i have daily enquiries from potential tenants looking for 2 bedroom houses.

This 2 bedder is in great condition, the carpets need a clean but other than that its ready for tenants to move straight in, which is good as this house is in a great location, opposite Warrington hospital and very close to town. It's on the market for £75,000 and expected rent would be £500, so without even breaking a sweat, you are looking at an annual yield of 8%... Happy days!

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I have found several deals just like this that can offer you around 7-10% yield If you would like any information about them or any advice on BTL properties in Warrington, feel free to pop into my office on 6 Crosfield Street, Bankside, WA1 1UP or email me on tpatel@hamlethomesproperty.co.uk

Monopoly in Warrington... How would you play?

A couple of local landlords and I had a discussion about the property market in Warrington, when the subject of risk against returns arose.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan. For a low risk investment, you could buy property in the newly developed areas of Warrington which are perceived as being more desirable, such as Sankey Bridges or Walton Locks, where you may be able to achieve an annual yield of around 6-7%.

If you don't mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 7-10%. This level of risk can be typically taken with areas such as Fox Street (whitecross), Longshaw Street (bewsey) or Hume Street (Warrington town).

If you are after annual yields of 12% or over, you could take more of a risk with houses of multiple occupancy such as in the student areas of Fearnhead or for that matter properties Wilderspool Causway.

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Warrington rental market for the first time, please email me on tpatel@hamlethomesproperty.co.uk  or pop into our office on 6 bankside, crosfield street. Free parking available outside the office.

The basics on buy-to-let in Warrington

Working in a Warrington lettings agents really does help when it comes to choosing the right property to invest in, I have the opportunity to see which properties in what areas are in high demand, which bring in the biggest yields and which properties give me capital gains, i also understand my market and know what my tenants are looking for, all this helps when i have first time investors looking to purchase their first buy-to-let like Paul who popped into the office yesterday after reading my previous articles. We chat about the basics on choosing an investment property in Warrington.

Size is not always the main consideration, quality and location are more important. Investing in new-build flats, old houses or typical suburban terraces all have merit in different ways, it depends on your investment objectives, timeframes and budget. Before investing there are numerous things you need to research including – but not limited to – cash amounts, mortgages and rates, fixed costs (such as service charges in flats), potential repairs and improvements, furnishings, gross and net yields, plus likely returns on capital employed. 

Houses seem to be more popular than flats in Warrington, larger bedrooms are better than singles, good nearby transport links are also useful and double-glazing is becoming a requirement for most tenants. Location of the property is also vitally important - the main drivers are access to train stations, good shops and restaurants and in the case of growing families, good schools.

The condition of property should also be considered. Tenants want dry, structurally sound properties in good condition (cracked fittings, marked walls, damaged appliances, grubby kitchens and bathrooms are all a turn off). Think carefully about the size and layout of the accommodation too. Most tenants will dislike small living spaces, odd shaped rooms and bathrooms without natural light. And remember, tenants have a strong sense of rental values so the days of landlords setting the rent to cover their mortgage are gone and they must therefore buy wisely.

A BTL property should look good from the outside (kerb appeal). If the inside is immaculate but the outside isn’t, you will struggle to get people through the door. Ideally the property should be semi-detached and have gas central heating and a shower. Double-glazing is another benefit.

Think about the age of the property. The younger the property, the less maintenance you will have. If you purchase a Victorian property it is likely you will have to rewire the property, therefore I would strongly suggest that BTL landlords have the gas and electric checks done on the property before Exchange of Contracts. If problems are found the cost of rectifying the issues could potentially come off the agreed sale price.

2 and 3 beds are the most popular (with 2 beds usually giving a better return on an investment), but it is essential that you understand the BTL market and complete all your homework before purchase. I would urge all BTL landlords to carry out a cost analysis before committing and have sufficient funds set aside for potential void periods and major repairs (a new boiler could cost around £1000, if you cannot afford to replace it then don't buy the property).

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Warrington rental market for the first time, please email me on tpatel@hamlethomesproperty.co.uk  or pop into our office on 6 bankside, crosfield street. Free parking available outside the office.

Is the Warrington Property market a runaway train?

Some of my landlords invest for yield, some invest for capital growth (and some for a bit of both). Everyone is different; if you are a landlord in Warrington, who invests for capital growth as opposed to yield, it is crucial to look to build in capital growth in a property by getting a property at a discount or by finding a way to add value.

So, how can you get a discount in this property market, with Warrington property values alight and property being snapped up over night? Achieving capital growth in Warrington is going to be tough over the coming few years isn't it? Well yes and no. Looking at the headline figures, of the 1,908 properties available for sale today in Warrington, 653 of them are sold subject to contract, an impressive 34.2% which is obviously a sign of a runaway Warrington property market? Well, no it isn’t. Don't get me wrong it is a lot better than it was a few years ago, but there are still good property deals to be had.

We asked Right move for all of the properties that had come on to the market in the last 28 days (363 to be precise), after one month, how many of those 363 had found buyers, less than one in five. Look at the last 56 days (2 months) and of the 601 properties that have come on to the market in Warrington, only 279 have a sale agreed on, the property market is good but it’s not a runaway train, is it?

The main thing is that landlords must take as much advice as possible. They will need to take a long and serious look at any existing properties or new ones to make sure they can achieve capital growth and that this increases in line with inflation.

We are able to look at the whole of the Warrington property market. There are good estate agents and bad ones, but one thing is always the same, they are all paid by a vendor to sell you a property, not paid by you to help you buy. Therefore, when they show you that bargain, don’t get pressured into buying a property until you have a good feel for the market. We have many landlords who send me a web link of any Warrington properties they are interested in and I always give my honest opinion. (It might not be what you want to hear, but it will always what you need to hear!).

If you would like to discuss my thoughts on the rental markets Warrington, feel free to pop into our offices on Crosfield street, 6 Bankside or email me on tpatel@hamlethomesproperty.co.uk

Warrington apartment gives Instant 8.1% yield

This is an opportunity where you can get quite a large apartment for a decent sum of money. Located in Great Sankey, this 2 bed apartment has been updated quite considerably and would make quite a nice investment property.

It has come to the market with Fast Move Properties for £81,500 and you would be looking to achieve around £550 rental for this type of property in this condition. The bonus is there is already a tenant in the property so the when you work out all the figures, you are looking at an annual return of 8.1%, not taking into account any service charges or ground rent which may be due, however you won't be facing a void.

It is a little bit further out of the town centre, and may not necessarily be an area that comes straight to mind when thinking about buying an investment property in Warrington, but it's not all about the city centre. This property would attract a slightly different tenant, someone who wants a bit more of a quiet life as opposed to the hustle and bustle of the town centre.

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If you have any questions about buying to let, feel free to e-mail me on tpatel@hamlethomesproperty.co.uk