Monday 30 March 2015

Great Freehold Buy To Let Property in Chelmsford...



 
I thought this week I would focus on 2 bedroom freehold properties, as this seems to be what most of our investor landlords are wanting to buy to add to their portfolios.  
So, I'm starting the week with this lovely property. It's a coach house, on Chelmer Road and looks in lovely condition. Doesn't need anything to be done to it before you move a tenant in. Although, don't take my word for it, you need to view it to be sure!

We rented out the adjoining coach house last Autumn and achieved £875 pcm, however the rental market has moved forward since then and I would be recommending a rental valuation of £900 pcm now. Beresfords have got it on the market for £220,000, so when we calculate the annual yield potential, we are looking at a return of 4.9%. This is about the norm for a freehold investment property in the Chelmsford area.

The rental market at the moment is suffering from a lack of property stock, this can be attributed to the fact that tenants are renewing their tenancies and not moving out, therefore the natural 'churn' of property is not coming to the market. This means we are having to rely on 'new' property stock to come to the market, which is why it is important for investors, new and old, to ensure that they buy the right kind of property. That's what we are here for, to guide you in the right direction.

If you are thinking about investing in property, why not pop into our office on Duke Street, for a cuppa and a chat

Friday 27 March 2015

5.6% Return on this 2 bed apartment in Chelmsford



This apartment is on the edge of the City centre, so still not too far away if you need access to the hustle and bustle. It's a great size, a couple of things I would recommend to be done, would be to change the carpets for something a bit more neutral, it's less likely to put people off then. I would also recommend re-instating a bath in the bathroom, it has currently got a double shower cubicle. to make sure again that you are not cutting anyone out from the market, pop a cheapy bath tub in with a shower above and away you go!

It's come on the market for £169,995, if you could get a couple of grand off the price, this will go towards the carpets and bath. Rental wise, you would be looking at a monthly rent of £795. Looking at these figures you could be looking at a potential annual return of 5.6%, before service charges etc. Not a bad property.

2 Bedroom apartments are always very popular in the rental market, no matter what is going on with the rest of the market, a 2 bed flat will always let.

For more advice on where you should be looking to invest your money in buy to let, feel free to come in and see me in our office on Duke Street







Thursday 26 March 2015

Which values of properties are actually selling in Chelmsford’s CM1 Postcode?



Prices up, prices down, prices stable… the newspapers are full of good news, bad news and indifferent news about the Brit’s favourite subject after the weather... the property market.

The thing is, the UK does not have one housing market. Instead, it is a patchwork of mini property markets all performing in a different way.  At one end of scale is London, which has seen average prices grow in the last twelve months by a shade under 19% (and again that is an average because some Borough’s in London have risen by 26%) whilst in the land of daffodils, by contrast, Wales, only saw a 2% increase in property values, although in the Merthyr Valleys they dropped by over 11%!

Well, we can’t ignore the rest of the UK, and we can’t forget that the Chancellor’s Stamp Duty reforms have polarised the London property markets above £1,000,000 because at the top end of the market, punitive Stamp Duty charges will dampen demand further. Whilst the Bank of England warned of the growing London property price bubble in the Spring of 2014, even talk of a recovery in some areas was premature. In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets – really slow property value growth.

So, what about our own patch in this patchwork market, Chelmsford? Well, we haven’t had the December figures from the Land Registry yet but the last few months’ activity and prices achieved would suggest neither house price growth nor drops.  In fact, most sellers are buyers anyway, so if you need to take less for yours, you won’t have to pay as much for the one you want to buy ... and that is good news for everyone as most move up market when they move. This is also great news for landlord investors, as they can bag a bargain as well!

The question you should be asking though is not only is what happening to property prices, but which price band exactly is selling? I like to keep an eye on the property market in Chelmsford on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Chelmsford.

Over the last two months in the Chelmsford CM1 postcode, 11 properties with asking prices under £100k have come onto the market and 27% of them, (3 properties) have a buyer and sold stc.
Between £100k and £150k, of the 100 properties that come on to the market, 59% of them (59 properties) have a buyer.
The £150k to £200k price range has seen 238 properties come on to the market, and 32% of these have a buyer (78 properties).
The more expensive £200k to £300k range has seen 180 of the 668 properties that came on to the market find buyers (26%) but the £300k+ range has been slower, with only 19% (129 properties of the 661) that have come on to the market, find buyers.

What this shows us is that the main activity is in the £100k - £150k price bracket, followed not so far away by properties between £150k - £200k.

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any house price growth or drops this side of the election. Election or no election, people will always need a roof over their head and that is why the property market has rode the storms of oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly, the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008.

And why? Because Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash.... there is always a silver lining when it comes to the property market!

Wednesday 25 March 2015

Great Buy To Let deal in Chelmsford...

...I've seen this property come to market and wanted to put it out there for you to see. We've just rented a 1 bed apartment within this development for £700 pcm and we had people fighting over it, so we know it's a good area for letting. 



This flat has come on the market for £154995 and it looks fairly inoffensive in its decor, although it is hard to tell from photos sometimes. You can't beat just getting in there to have a good look around sometimes, that's what I would recommend you do with this one if you are seriously thinking about investing in a buy to let property, it's a decent price to start with and the yield would look to gross you 5.2% per annum.

This type of property will attract professional tenants due to its location and will fly out of the door, mark my words!

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

Monday 23 March 2015

Investment opportunity in Chelmsford City Centre...



 

... Just come across this apartment on Rightmove, on the market with Beresfords for £167,500, in prime renter territory! It's not in bad condition, although the tiles in the bathroom are an acquired taste! 

This block of flats is located within central Chelmsford, ideal for commuting tenants, who can roll out of bed 5 mins before they need to get to the station. the 1 bed apartments in this area rent in the region of £750 pcm as they also benefit from having allocated parking. 

If we do our sums based on these figures, you are looking at an annual gross yield of 5.3%, which for a city centre flat is pretty good. 

We had a couple come into our office last wee looking to invest in a buy to let property, they'd been left some money and wanted to put it somewhere where it will grow, (more than in the bank). We have managed to help them buy a 1 bed apartment just off Broomfield Road, which will gross them 5.4% on their investment, without even taking into account capital gains! 

I'm happy to help answer any questions about the property market in Chelmsford, if you would like to take advantage of this, pop in and see me in our office on Duke Street.