5.8% Yield on this Chelmsford Apartment

http://www.rightmove.co.uk/property-for-sale/property-50144075.html

Not so pretty on the outside, but the location is great for buy to let. They are a great size size these flats, being an older build. This one has just come on the market for £155,000 with McCartney's. This is a pretty good price for a property of this size. It's hard to tell from the photos the exact condition, but it might benefit from a freshen up with the paint work and the flooring.

Similar properties in this area have rented recently for around £750 pcm, so you would be looking at an annual yield of 5.8%

This week has seen some pretty good properties for buy to let, with quite high yields. Prices for sale are on the up though, so I would suggest buying earlier in the year to try and make sure you can get yourself a property bargain. 

An Expert ‘Buy-To-Let’ Checklist when looking for Property in Chelmsford

Buying to Let - popularly hailed as an alternative to badly performing pension funds - was slowed down by a recession that squeezed mortgage deals and discouraged housing investment. But a reviving market is now generating more attractive mortgages, stimulating property prices and generally raising rent levels again.
We have found that advice for new Buy-To-Let investors can still be contradictory and confusing, like most things if you’re Buying-To-Let, you need to do it right and when a considerable amount of your own money is involved it becomes absolutely critical.

We thought, to try and make the process of buying to let simpler and more successful for you, we would prepare a definitive checklist. So here we go...

•  Research your market – the area, the people you want to rent to, the available property, the benefits and the risks – and keep up with letting industry news.
• Choose your preferred tenant type. Students? Young professionals? Families?
• Find the right property that will appeal to them – houses, flats, older properties, newer builds? Students may not need anything particularly stylish but a young professional might.
• Then pick the right area where they want to live – parents may want to be close to schools and shops; wage earners need to commute to work; students have to be near to their college or university. Look outside your own area if necessary.
• If local crime statistics are available, take a look and bear them in mind.
• Study the condition of any property you are interested in – from roof, guttering and windows on the outside to condensation, leaks and electrical wiring on the inside. Be conscious of fire risks. Check whether extensions or conversions have met planning permission or building regulations.
• Don’t accept the first mortgage offer you get. Shop around. Gather information. Compare.
• Get the maths right – your investment might give a better return in some other way. How much is the right property going to cost? Is the rent you expect to get enough to cover the mortgage and give a profitable return? Does the potential capital growth add up to a good investment?
• Talk to an independent lettings agent before you buy. Most mistakes involve either wrong location or wrong price paid for a property.
• Don't be greedy – Buying-To-Let should be approached as a long-term investment, not a quick fix.
• Be prepared for costs that can upset your calculations – ongoing maintenance, small and major repairs, advertising, future rate rises, mortgage costs, agents fees, tax, falling house values, periods when you can’t find tenants and the property is empty.
• Get the right insurance cover – and that can include insuring yourself against tenants who fail to pay rent.
• If you’re going to manage the let yourself, be prepared to sacrifice your evenings and weekends! If this is likely to be more of a drain than you are prepared for, seek out a professional, fully accredited lettings agent who, for a fee, will look after your property, your interests and your tenants on your behalf.

This checklist offers a selection of do’s and don’ts, but, it is only for guidance purposes, we prefer to sit down, face-to-face, with a new potential investor and offer more solid professional advice, since everyone’s circumstances and expectations are very different. Why not come in and see us in our office on Duke Street

Property in Springfield with a potential 6.6% yield!

http://www.rightmove.co.uk/property-for-sale/property-33384543.html

As most of my regular followers will know, I spend a lot of time going through the property portals looking for great Buy To Let opportunities for landlords, experienced, or first timers. 

The average yields in Chelmsford can be around the 4.5 - 5.2%, so when a property comes up with the potential to generate an annual yield in excess of 6%, i have to shout about it.

This property has just come to the market with Hamilton Piers for a price of £119,995, it could maybe do with a little TLC, updating the carpets and decor, but the major things like kitchen and bathroom are perfectly fine. I would always recommend making a rental property look the best that it possibly can, not only will it attract a higher rent, but also a higher quality tenant.  Even if you went crazy spending on this apartment and spent £5k making it look fresh and clean, this would make your total investment £125k. With apartments like this renting for £695 in tip top condition, this would give you a potential annual yield of 6.6%!

One thing to bear in mind with this property is that it is being sold with a short lease, as many of the properties in this location are, as an investor,this isn't something I would say you need to worry about straight away, you could buy it, rent it out for a few years and then look to extend the lease before you sell it on. This way, you can then maximise the price you sell it for when the time comes

If you would like any advice on the buy to let market, please feel free to drop me a line at stephen.frost@martinco.com