Investing in
Warrington buy to let property is different from investing in the stock market,
or depositing your hard-earned cash with the building society.
When you
invest money in the building society, this is considered by many as the safe
option. However, the returns you can achieve are awfully low (the best 2-year bond rate from Nationwide
is a whopping 0.75% a year!). While
the stock market can give good returns, it’s a very ‘hands off’ investment -
unless you are on the phone every day to your broker. It can also leave a
feeling of lack of control.
Investment Properties in
Warrington
“With buy to let, things can be more hands on.”
One of the
things many landlords like is the tactile nature of property – the fact that
you can touch the bricks and mortar. It is this factor that attracts many of
Warrington’s landlords. They are making their own decisions, rather
than allowing city whizz kids in Canary Wharf to play roulette with their
savings.
Investing in property is a long-term game. When you invest in
the property market, you can earn from your investment in two ways. When a property increases in value over time, it is known as 'capital growth/capital appreciation'. This has been strong in recent times
in Warrington. The value of property goes up as well as down, just like shares
do, but the initial purchase price rarely decreases.
Rental income is what the tenant pays
you – hopefully this will also grow over time. If
you divide the annual rent by the value (or purchase price) of the property, this is your yield/annual
return.
Over
the last 5 years, the average Warrington property has risen by £40,100 (equivalent to £21.97 a day), taking it
to a current average value of £205,600. Yields
range from 6% a year and can reach double digit percentages (although to
achieve those sorts of returns, the risks are higher).
Flips in Warrington
However, something I haven’t really spoken of in detail
before is the more specialist area of flipping property to make money.
“FLIPPING - buying a property, carrying
out some minor cosmetics and re selling it quickly.”
I have seen several investors recently who have made decent
returns from this strategy.
·
One Warrington investor paid £125,000 for a three bed semi on
Keyes Close in March 2016. It appears some cosmetic work was done to the
property and it was resold a few months ago (November 2016) for £150,000.
That’s a 20.00% return before costs! (Or a compound annual return equivalent of 34.42% AER.) http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43307643&sale=89153106&country=england
That’s a 20.00% return before costs! (Or a compound annual return equivalent of 34.42% AER.) http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43307643&sale=89153106&country=england
·
Another Warrington investor flipped a lovely three bed
detached property on St Bridgets Close, paying £159,950 in September 2016 and
selling it again after some doing some cosmetic works. It was sold for £179,950
a few months ago (December 2016)!
That’s a 12.50% return before costs! (or equivalent 10.22% AER.)
http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=56283706&sale=89152779&country=england
That’s a 12.50% return before costs! (or equivalent 10.22% AER.)
http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=56283706&sale=89152779&country=england
This
demonstrates how the Warrington property market has not only provided very
strong returns for the average investor over the last five years, but how it
has permitted a group of motivated buy to let Warrington landlords and
investors to become particularly wealthy.
As I have
mentioned before, more and more Warrington people may be giving up on owning
their own home and are instead accepting long term renting. This leaves buy to
let lending to grow from strength to strength. If you want to know what (and
what would not) make a decent buy to let property in Warrington, then one place
for such information would be the Warrington Property Blog.
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.
Follow The Buy-To-Let Property Investment Market in Warrington
Warrington Property Market LinkedIn Page
Hamlet Homes Letting Agents Warrington Facebook Page
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Warrington Investment Property Specialist Hamlet Homes Website
Warrington Property Market LinkedIn Page
Hamlet Homes Letting Agents Warrington Facebook Page
Hamlet Homes Letting Agents Warrington Twitter Page
Warrington Investment Property Specialist Hamlet Homes Website
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