Saturday 31 May 2014

Great Buy To Let offer in Chelmsford

Good morning, welcome to the weekend, it's supposed to be a scorcher, ideal for property hunting!

Just had a quick look through Rightmove and this property caught my eye. It's a modern block, which is always popular, it's in pretty good condition inside too. Ready to be rented out straight away. On the market for £185k, which is about the going rate for a modern apartment in Chelmsford outside of the city centre. This would rent in the region of £850 pcm, therefore producing a yield of 5.5%, if bought at asking price. If you manage to get a bit of money off, then even better!

The link below will take you to the full details on Rightmove

http://www.rightmove.co.uk/property-for-sale/property-30483972.html

Friday 30 May 2014

Calling all investors - Chelmsford buy to let option!

Check this property out! Listed today, I recommend that if you are in the market for a buy to let property, you should consider this one. It looks to be in great condition, OK the kitchen perhaps isn't all singing, all dancing swanky, but it looks to be in good nick. We rented a flat like this out very recently for £725 pcm, which on a purchase price of £150k generates a very healthy 5.8% yield.


The link for the full details is below, if you are interested give the agent a call



Thursday 29 May 2014

Where should you buy property in Chelmsford?

Unless you get phenomenally lucky, you cannot have your cake and eat it! There’s a general rule that the better the area you buy in (say Beaulieu Park etc etc), the lower the return you’ll get. This is because you’ll have to pay more to buy property in a nice area, and the amount of rent you’ll get doesn’t rise at the same level. Buying in a less plush area (Melbourne etc) doesn’t mean a property won’t rent, but it does have a bearing on the type of tenant you are likely to attract.

Different landlords value different things – some prefer to accept a modest yield (the monthly return) on their rental investment, in return for more certainty regarding tenant quality. Others are simply more interested in high returns. Before you start out, it’s a good idea to be honest about what would work, or more importantly what wouldn’t work for you. This will then enable you to filter much more easily..

Better Area, Lower Return
The most expensive 3 bed houses are in Great Baddow area of Chelmsford
Because you pay more for these to start off with, the return is never as good. Some landlords prefer this because of the ‘comfort factor’ of owning in these areas. Paying around £350k to £375k gets you a 3 bed detached house, which will let for £1250 per month, a lowish yield of 4.1%

Middling Area, Average Return
Chelmsford has some  Victorian Terraced properties near the centre, taking in places like the terraced streets off either side of New London Road (such as Queen Street and Lower Anchor Street) areas to name but a few. This is staple rental territory - there’s always good demand here from private tenants. Three bed terraced houses can be bought for £230,000 to £250,000 and with rents of £925 per month (depending on condition) , that’s a nice yield of around 4.6%

Cheaper Area, Higher Return

If you want your money to work as hard as it can, you need to get into some of the less expensive areas of town. Much of the Melbourne area falls into this category, together with areas like Noakes Avenue and Rothmans Avenue. I know someone who has bought a 3 bed semi house in the Melbourne area for around £180,000 recently. Done up, it should rent for the early £900 a month, giving a yield of the very early 6%’s


Springfield Deal of the Day!




Good afternoon everyone, just been going through Rightmove and noticed this little gem which is definitely worth a look. It's a 2 bed maisonette, just come on the market with Haart. It could probably do with 'neutralizing' in the decor department, but the bathroom & kitchen are listed as brand new, one less thing to worry about.

One thing you will need to take into account is that the property is being sold with a short lease, therefore only available to cash purchasers. It does mean at this stage that you can bag yourself a bargain and still get market value rent. Having a short lease doesn't affect the rental side of things!

When you decide to sell the property, you can then look into extending the lease at that stage and then be able to sell at a premium price. This one is all about the 'Now' & the 'Future'. 

You would expect to rent this out in the current market at £675, which would produce a 6.2% yield!

http://www.rightmove.co.uk/property-for-sale/property-44167840.html?premiumA=true

Wednesday 28 May 2014

Chelmsford Property Market Running away??

Over the last 7 days, according to Rightmove, which most agents use, 103 properties have come on to the market in Chelmsford and the immediate surrounding areas ..... of those 103, nine have sold stc .... only nine ... that is a normal market not a run away market.

Tuesday 27 May 2014

5.7% Yield on Redmayne Drive

Good afternoon everybody, I hope you all had a great Bank Holiday weekend.

I thought I'd get straight back into the swing of things and have picked a property that may be quite interesting for you.

This lovely little apartment is on Redmayne Drive, off New London Road, quite popular with renters as they offer good size properties at a reasonable rate. On the market with Pink Residential for £129,000, I reckon they are looking for a deal around £125k, as this is the stamp duty bracket. Depending on what it looks like once empty, may need a touch up on the decor front, but that's not going to cost mega money.

We rented a very similar apartment in this area for £595 pcm. Working these figures out, you are looking at a very tasty 5.7% yield on your investment. 

http://www.rightmove.co.uk/property-for-sale/property-44243110.html 


Monday 26 May 2014

Charming Writtle Deal


Just came across this property which has only recently come on the market, these properties are quite popular with tenants as they offer village living, but only a short drive from the main city. The only thing that I would do do it, would be to neutralize the decor in the bedroom, apart from that, it looks OK. It's on the market for £138,000 and would rent in the region of £625 pcm. (We rented one recently for this price in this area and it flew out of the door). This would give you a yield of 5.4%. 

Take a look at the details on Rightmove by clicking on the link below, if you're interested, I recommend you call the agent sooner rather than later!.



Saturday 24 May 2014

Canvey Walk 5.9% Yield

Just wrapping up the week with another great property that I have seen today on my Rightmove travels. A 2 bedroom apartment in Canvey Walk, Springfield, for only £140k! Ok, looking at the details, it probably needs a redecorate & new carpets to bring it up to standard, but when you look at the yield it will produce, it's worth while doing it. 

This would rent in the region of £695 pcm, giving you a 5.9% yield, great right?

Full details below, but be quick, or you'll miss out.



Friday 23 May 2014

Saturation of the Chelmsford rental market?

Someone emailed me after the reading the blog and asked about saturation of apartments in Chelmsford.

Don't worry about saturation - there's no sign of this currently. If you gave a letting agent 10 or even 20 terraced houses in Chelmsford, they would find you tenants, provided you priced them sensibly. They wouldn't be able to find 20 immediately, but I'd do one or two  a week for 10 weeks without too much trouble. 

Some times with new build developments, for example St. Johns  site(in Moulsham), sometimes all the properties complete on the same day, and all the landlords who bought those properties all put them up rent on the same day. That creates a short term problem with supply and demand, but once the initial hurdle is overcome, normal service resumes.

Whether you should buy new build is another question! Some people do this as it looks nice and everything is guaranteed. If you're a good negotiator you may be able to get the builder to chuck in all the things you need to get it let - appliances, window blinds, flooring. It's an ultra low risk approach to buy to let. However you will always pay a premium for a new build property and whether it makes financial sense is another question entirely! 

Compare these 2 properties:



They are both going to rent for the same money - £1200PCM. But one is £38,500 more than the other. A lot of people would still be more attracted to the new one as it's much prettier, but if these were the only 2 properties available I know where I'd be sticking my money! What I'd spend the £38.5k saving on is another matter entirely.

PS .. Don't you just love this roadsign when you drive back to Chelmsford!


Great Baddow Beauty!

Saw this lovely  Buy to let opportunity on Rightmove today, a 2 Bedroom apartment in a great area, at a great Price, 2 bedrooms for only £139,995! Overall, it looks to be in good condition, although I would probably sort out the second bedrooms, it's a bit bright with yellow walls and red carpet! Being an older block of flats as well, means that it offers a bit more space. With a rental value of around £695 pcm, you are looking at a yield of 5.9%, which is great. Check out the link below:






Thursday 22 May 2014

Modern Buy-To-Let Property - Chelmer Road

Good morning every one. I've handpicked another one for you. 


This1 bedroom apartment is in a great location, still close enough to the City centre for the commuter market and enough out of 'the thick of things' for people who don't want to be in the hustle & bustle, but still need great commuter links. On the market for £154,995, which isn't a bad price given the condition of the apartment, however, if you managed to get it for £150k (We all like a bit of a deal don't we), all the better. With an asking rent in the region of £700 pcm, you're looking at a 5.6% yield.

Being a leasehold property though, make sure you check with the agent, what the service charges & ground rent are, you will need to take this into account when looking at the finances.

It's not been on the market long, so don't delay