The Warrington
buy to let market has been quiet over the past few weeks. Sellers have not been
keen to sell at levels that would be interesting to investment buyers, who lack
confidence in the current market or bought earlier in the year to avoid Stamp
Duty changes. But some sellers have come to realise that unless they take
action on their pricing they will not be selling this year.
If you do
not buy now, the New Year will bring the usual inflated prices that come with
the optimism of the turn of the year, even if it is not warranted. April then
represents the next opportunity to invest if the first quarter does not deliver
for sellers. In my experience April is always the first month that you can call
the market for the year. If the first quarter has been strong, all will be
fine. If it has not, it will be April before sellers react and start to take
action to get sold.
Top Tips for
Investing in Warrington
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.
Investing in
new-build flats, old houses or purpose-built halls of residence and pods all
have merit in different ways in Warrington. It depends on your investment
objectives, time frames and budget.
Warrington
is a great place to invest, especially close to the town, university, or even
near the hospital on Lovely Lane as there are many doctors and nurses,
students, professionals and commuters to and from Manchester and Liverpool
looking for accommodation. If you do go down the HMO route, always
make sure that the property has sufficient bathroom and kitchen facilities to
match the number of likely occupants.
Size and Location
Two bedroom
properties seem to be the most popular, houses OR apartments, with larger
bedrooms better than singles. Good nearby transport links are also useful and
double-glazing is becoming a requirement for most tenants.
However,
three bedroom properties have grown in popularity. I am noticing more requests
for three bedroom properties by Warrington tenants; however the supply just is not there. I understand in most cases the
yields are very similar to that of a two bedroom, but the initial cost is more
for the larger property. However, you have fewer void periods with a larger three
bedroom property and if you purchase at the right price the chance of growth
will be greater than that of a smaller property.
As mentioned
above, location of the property is vitally important in Warrington. The main
drivers are access to train stations, local shops and restaurants… local schooling
can also be a factor.
Think
carefully about the size and layout of the accommodation too. Most tenants will
dislike small living spaces and odd shaped rooms.
Condition
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 about
the age of the property. The younger the property, the fewer maintenance issues
you will have. If you purchase a character property, 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, potentially, the cost of rectifying
the issues could come off the agreed sale price.
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.
When Should You Buy?
So if you
are buying to let in the next six months, it is worth getting out now and
looking for those motivated sellers. Or you can keep watching the market (and
this blog!) with a view to buying in April or beyond. There is of course the
possibility that the economic news will be sufficiently good through the first
quarter to encourage others to buy… then you will have to go with higher market
values!
If you are looking for an
agent that is well established, professional and communicative,
then contact us to find out how we can get the best out of
your investment property.
Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area,
feel free to pop into the office – we are based on 6 Bankside,
Crosfield St, WA1 1UP. There is 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.
Twitter, https://twitter.com/HHWarrington
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