5% Return on this apartment in Galleywood, Chelmsford.

http://www.rightmove.co.uk/property-for-sale/property-52299902.html

This property has just come to the market, with an asking price of £130,000. It's a 1 bedroom flat in Galleywood, which could be sold with a tenant in residence.  The tenant here is currently paying £545 pcm, therefore you could be looking at an annual gross yield of 5%. 

Now, it is a basic apartment, the tenant here has been there for some years, when he does eventually move out, you may need to invest in a little bit of decorating and modernising, but nothing that is going to break the bank necessarily. 

We suggest you get in for a viewing as soon as possible, because this little beauty won't be around for long!

Chelmsford v London... It’s like being in a different country!

I had an interesting conversation with a local Chelmsford accountant the other day. He is quite an observant chap - I know this because I have known him for a few years, but I suppose you have to be to be an accountant! Anyway, he mentioned a few things he had noticed recently in Chelmsford, one that Chelmsford property prices had gone up in the last few years but nowhere near the growth levels that were being achieved in central London, and secondly, that he thought the number of for sale boards in Chelmsford - and more importantly ones with sold slips on them - had increased over the last couple of years.

The rate of house price inflation in Chelmsford has slowed down slightly with growth of 5.3% in the 12 months to April. However, there is considerable local variation with house price growth ranging from 3.8% in Witham, to 6% in Braintree over the last 12 months. Good news for Braintree homeowners!

Whilst chelmsford hasn’t seen the 20%+ per year in house price growth of London over the last couple of years, Chelmsford has seen a sharp uplift in the number of properties sold throughout 2014 as base line demand for housing grows, which suggests there is substance to the recent pick-up in house price growth in the City. After the Second World War in the UK, when the number of properties sold grew, property values grew soon after.

When you compare Chelmsford with London, you could be looking at two different countries. In London, its mid/late teens house price to earnings ratios are impacting demand; i.e. the average property value is often 15 or 17 times the average wage in London... in fact, in Knightsbridge the ratio can be 30 to 1.  However, the number of people wanting to sell has dropped considerably, meaning that falling sales volumes combined with a general slowdown in activity in the run up to the General Election are resulting in lower mortgage approvals for home purchase.

Transactions are a great indicator for house prices. The acceleration in house price growth in London in the last two years was preceded by three years of rising transactions. A similar pattern is being registered in the Chelmsford area, as pent up demand returns to the market supported by low mortgage rates and an improving economic outlook.

If you want to know more about the Chelmsford Property Market, please to not hesitate to contact me! Mobile, office, text, e-mail, carrier pigeon - I'm not bothered!

Modern apartment in Chelmsford with 5.4% return...

http://www.rightmove.co.uk/property-for-sale/property-34771254.html

I hope everyone had a lovely Bank Holiday weekend, back to it now though.

Did some sums on this apartment, just off Writtle Road and you could be looking at an annual yield of 5.4%. this is based on an asking price of £200,000 and an achievable asking rent of £900 pcm. The market for this type of property is incredibly hot at the moment. 

This particular example looks lovely, nice and modern, with a little balcony and parking space. Probably not much you would need to do to it to get it 'Letting Ready', although make sure that when you view it, you double check the nitty gritty of the condition, photos don't always tell the whole story. 

If you would like any further information on buying to let in Chelmsford, come on in for a cuppa and a chat. My office is on Duke Street

 

Maisonette in Chelmer Village, Chelmsford with it's own garden...

Not many flats or maisonettes come with their own private garden, so when I saw that this property has exactly that, I thought I would make it one of my 'Deals of The Day'. It's just a little bit different, which will make this property stand out from the crowd and potentially easier to find a tenant for. 

It looks to be in fairly decent condition, of course a viewing will show you exactly what it's like. Photos can hide a multitude of sins you know!

http://www.rightmove.co.uk/property-for-sale/property-52118438.html?premiumA=true

Properties of this style with the added benefit of the garden, would rent easily for around £800 pcm. When you compare this against the asking price of £185,000, you could be looking at a potential annual return of 5.1%

If you are out viewing property and want an idea of the 'realistic' rental price for it, just give me a call, or e-mail me the link over to the on-line details. My advice will always be honest and hopefully will enable you to make an informed decision of what is right for you. stephen.frost@martinco.com

 

Property values rise by £308 per week in Chelmsford

Last week, a landlord who lives in Springfield, came in to our office to discuss the rising property values in the Chelmsford area, he owns a varied portfolio of rental properties, primarily in Chelmsford and Braintree with one in Witham, so it is interesting to compare the increase in property values around the area.

Over the last 12 months in Chelmsford, average property values have risen from £300,798 to £316,855, a rise of £16,057 or £308 per week. When I looked at the other areas, Braintree has had a slightly lower increase in property values at around £287 per week, whilst Witham has only seen increases of around £173. It is nonetheless a rise in all the towns’ average property values, which suggests that the market is recovering quite nicely in our area, but especially Chelmsford. Good news for home owners and landlords alike.

When considering this landlords buy to let portfolio, yields can be in the order of an average 4% - 5% per year, depending where you buy, so combine that with steady rental growth, excellent increased in capital values of the properties themselves and it could be time to invest in the property market in Chelmsford as property values start to rise

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking if investing in the rental market, please come and see me at our office on Duke Street, opposite County Hall in Chelmsford

This 1 bed apartment in Chelmsford is huge!

Who says size doesn't matter! 

This apartment in Great Baddow, just off Beehive Lane is huge, considering it's only a 1 bedroom apartment, the lounge is a cracking size and the bedroom is a really decent double size as well. Some 2 bed apartments are smaller in comparison!

http://www.rightmove.co.uk/property-for-sale/property-49919692.html

This apartment has come to the market with Beresfords for £155,000, which you might think is quite high for a 1 bed, but have to take into account the dimensions of it. The rental return though is still just as good as others on the estate. An apartment of this size in this location, should easily rent for £700 pcm. Therefore you could be looking at a potential gross annual yield of 5.4%.

If you would like any advise on the Chelmsford property market, feel free to give me a call on 01245 330500