Stockingford Buy to Let opportunity with a 7.5% yield.

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Just added by ‘Purple Bricks’ this morning is this lovely, well presented 3 bedroom end terrace house on Brendon Way in Stockingford.

http://www.zoopla.co.uk/for-sale/details/40873820

This property has 3 large bedrooms, a fitted kitchen diner, downstairs w.c and a detached garage….and for ‘offers over’ £99,950. Having recently viewed a similar property with one of our landlords in that area which was also marketed at ‘offer over’ £99,950 I can tell you that it did in fact sell for £105,000. As I haven’t personally seen this one I’m not sure if it is on par with the house that sold for £105k or if a figure of £100k would be more realistic. If we however base our calculations on the proviso that you could buy it for £100,000, with an acheievable rent of £625 PCM you would be looking at a yield of 7.5%… impressive right?

 

People in the past have tended to turn their noses up at this particular area, for the simple reason that many years ago it was a ‘council estate’, however the majority of houses there have now been bought and are tenanted or owned by the  working class . I know myself that houses here don’t stay on the market long so id definitely arrange a viewing asap.

As for being able to rent it out… it is in an ideal location for commuting, with links to Birmingham and Coventry via the country lanes. It is also in the catchment area for the good Primary school, and only a short drive into Nuneaton town centre. I think this would be an attractive prospect for any renter.

If you would like advise on any property you are looking to purchase for buy to let investment, or you would just like advise on Nuneaton as an area, please give us a call on 02477 674545

66% of Nuneaton and Bedworth Voters voted to leave the EU – What now for the 43,658 Nuneaton and Bedworth Landlords and Homeowners?

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It’s 5.50am as I start to type this article and David Dimbleby has just announced the UK will be leaving the EU as the final votes are counted. As most of the polls suggested a Remain Vote, it came as a surprise to most people, including the City. The Pound has dropped 6% this morning after the City Whiz kids got their predictions wrong and MP’s from the Remain camp are using words like “challenging times ahead”.

Continue reading “66% of Nuneaton and Bedworth Voters voted to leave the EU – What now for the 43,658 Nuneaton and Bedworth Landlords and Homeowners?”

Nuneaton Landlord Confidence set to rise again.

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While confidence remains low among Nuneaton Landlords after recent government interventions in the buy-to-let market, buyers are slowly returning, according to research from paragon mortgages.

Following an increase in the rate of stamp duty payable on BTL purchases, and with a staged reduction in income tax relief available on rental income due to start next year, landlord confidence remained low during the first quarter of 2016.

A survey of more than 1,000 private rental sector landlords undertaken by BDRC continental revealed 41 % rated their prospects as being either ‘good’ or ‘very good’ down from 65% during the same period last year. Indicating that falling levels of confidence may have stabilised, the figure is just a 2% fall on the fourth quarter of 2015.

The first quarter of this year also saw landlords property purchase intensions edge above selling intentions, reversing the situation seen in the fourth quarter, when more landlords were looking to sell property than were looking to buy.

Interestingly, at the beginning of 2016 there was an in increase in tenant demand with 39% of landlords reporting demand as increasing either slightly or significantly, up from 34% at the end of 2015.

Despite negativity continuing around business expectations over the short term, rental property as an asset class is still viewed favourably by landlords, with 38% of landlords polled believing the private rented sector to be ‘much better’ than other investment options. Speaking with numerous landlords in Nuneaton this seems to be the case also with only a few choosing to sell up, in-fact with the current house prices in Nuneaton it is still very much an investors market.

If you would like to speak to us more about investing in Nuneaton, please feel free to come in and have a chat with us, our office is on Bond Street just by the train station.

 

Nuneaton Eye Candy Property of the week…with 24 acres of land!

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To brighten up this dreary Monday Morning I thought id bring to you a mega eye candy property!

If you’re in the market for a 7 bedroom £1.8 million property just outside of Nuneaton with 24 acres of land, then I hope you have a pretty decent lawnmower!

This is very different to the usual 3 bedroom terrace I normally write about… it is of course not your typical buy to let investment but boy, what an investment it would be!

There is not one thing that you could fault with this house- it is truly amazing. With 4 reception rooms, 7 bedrooms- 4 of which have en-suits you also get a Coach house suitable for residential or commercial use, Stables and Outbuildings and a 1 bedroom cottage, not forgetting the 24 acres of land!

It is located just outside of Nuneaton in Lindley ( a village created just for this one house maybe?)

It is being marketed by Barkerstone, and in all honesty I think a property like this needs to be seen in person to appreciate the magnificence of it. It is most definitely top of my list for when I win the lottery on Friday!

http://www.zoopla.co.uk/for-sale/details/38460121

Keep your eyes peeled for more eye candy properties in Nuneaton!

Changes to ‘Right to Rent’ for Nuneaton Landlords

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So far, 2016 has been a bumpy year for Nuneaton landlords, and one of the biggest culprits has been the introduction of the controversial Right to Rent checks.

Right to Rent has changed the way private lettings operate within England, and many Nuneaton landlords and tenants found the changes to the system confusing.

However, despite the regulations only having been in place a couple of months, changes have already been made to the Immigration Act. The new legislation passes more power to landlords, giving them the power to evict tenants who have been found to be in the country illegally.

If none of the tenants have a ‘Right to Rent’

If none of the occupiers in the property have a Right to Rent, the landlord is likely to have a strong ability to evict.

  • The tenant would lose all of their rights under current legislation which protects tenants
  • The landlord can immediately serve a 28-day notice to quit.
  • At the end of that notice period, the landlord can use reasonable force to remove the occupiers, or he can treat the Secretary of State’s notices and the notice to quit together as an order of the High Court
  • A High Court Enforcement Officer can directly remove the occupiers without a Court order.

Whilst there is fear that these changes could have a severe impact on many Nuneaton households, studies by the Home Office suggest that there are few properties that are populated exclusively by tenants without the Right to Rent.

Instead, it is suggested that the majority of properties will have a mixture of tenants who are living in the UK legally and illegally. In this instance, the following applies under the new ruling:

If some of the tenants have a ‘Right to Rent’

The new legislation has clarified different methods of eviction processes dependent on different types of tenancy agreements.

If the tenancy is one under the Housing Act 1988, the landlord can use a Section 8 notice to regain possession of a property if they believe that some of the tenants do not have a right to rent:

  • The landlord must issue a notice citing ground 7B, which gives tenant 14 days’ notice of intended possession proceedings
  • After the 14-day period, court proceedings can be taken.
  • If the Court finds that all the tenants have no Right to Rent, possession will be granted in the usual way.

If the property is occupied on a joint tenancy and one or more of the tenants have a Right to Rent, but other tenants or occupiers do not, the procedure is:

  • The Court may order that the tenancy is transferred solely to the tenants that do have a right to rent in the UK, and they will take on the agreement for the property.
  • Landlords are only able to go down this route if they are not intending to gain possession of the property via any other option.
  • Most landlords will probably look hard to see if some other ground is also available to them. The transferred tenancy is not a new tenancy and so there will be no new six-month security against service of a section 21 notice for example.
  • However, the legislation does not specify how the deposit is to be dealt with and so it will likely need re-protecting and new prescribed information serving.

It is important to remember that the transferred tenancy would not represent a new tenancy agreement. However, the deposit must be re-secured and the prescribed information reissued within 30 days of the agreement being issued, just as if any reoccurring tenancy agreement were being reissued. Failure to do so means that the tenant would be unable to be served with a Section 21 act on should it be required

If you are a Nuneaton landlord and feel any of the above issues might be effecting you, I’d advise taking immediate action.

These figures for Country of Birth for the residents of Nuneaton are from the UK Census of 2011. Since Nuneaton has a higher level of residents born in the UK than the national average and a lower rate of residents either born in other EU countries or outside the EU, it does not have a significant immigrant population.

Country Nuneaton and Bedworth Warwickshire England
United Kingdom 93.2% 91.7% 86.2%
Rebublic of Ireland 0.5% 0.7% 0.7%
Other EU Countries 1.8% 2.9% 3.7%
Outside the EU 4.5% 4.7% 9.4%

 

Nuneaton 5.7% yield VS a 7.09% yield.

aberdeen   vs  fife street

This morning after talking with a potential investor currently living abroad, I thought it would be interesting to do a comparison on Nuneaton properties that are currently on the market. Comparing areas, prices and the properties themselves. He was questioning whether its worth spending more on a ‘new build’ property as opposed to the usual traditional terrace properties that we so often see for sale.

So I picked 2 houses to do this comparison on. The first is a 2 bedroom, semi- detached property in the more desirable Nuneaton location- Attleborough. It’s on an estate that which over the past 10 years has been built so the property itself isn’t old, it is however small, which is one of the downsides to the new build 2 bedrooms these days. This property is on the market with Your Move for £125,000, and I think an achievable monthly rental income would be £600 for this property. This would give you an annual yield of 5.76% which in all honesty isn’t as high as other properties I have spoken about on my blog….but…you are getting a new build property in an area which is classed as a nicer part of Nuneaton. Close to schools which people desperately want to get their children into as well as being ideal situated for Motorway links- appealing to commuters. The only downside being space internally. The rooms are a lot smaller and you only get the one reception room and one double bedroom, this would be ideal for a young working couple or maybe a couple with a young child perhaps. Judging by the photos there wouldn’t be too much work needed to be done to the property, maybe a neutral coat of magnolia throughout and new carpets, nothing too costly.

http://www.zoopla.co.uk/for-sale/details/40157396

 

The second property is a 3 bedroom end of terrace, located on Fife Street 2 minutes walk from Nuneaton town centre. Internally this property is huge, offering 2 reception rooms a large modern kitchen and a large bathroom with separate shower and bath. The first floor has 3 large bedrooms, even the smallest could be a double, with ample landing space. This property is laid out much differently to your bog standard terrace with the kitchen and middle room being very open plan giving a lovely ‘family’ area. This property is on the market with up estates and has an asking price of £109,950. I think you’d be able to achieve a monthly rental income of £650 on this property which would give you a very appealing yield of 7.09%. Location wise, its not classed as the ‘nicer’ part of town, however the area itself is highly desired for its town centre location, the local amenities as well as schools in the area so I know from personal experience this property would fly off the shelves! There is very minimal work that needs to be done on this property, maybe a fresh lick of paint but that really is all.

http://www.zoopla.co.uk/for-sale/details/40529264

 

So… would you pick the 2 bed semi ‘ new build’ at £125,000 in the slightly nicer area of town which offers you location and curb appeal but is substantially smaller internally limiting the type of tenants you could attract with a yield of 5.76%, or the 3 bedroom end of terrace which is £15,000 less to buy and would give you a greater yield of 7.09%, offering more rooms, and larger rooms at that which would appeal to a larger market of tenants, the downside being the lack of ‘curb appeal’ and it not being in the same known desirable location as the 2 bed semi.

I know what I would pick without a doubt, but everyone has their reasons for picking what they pick. I just wanted to give you an idea of what the possibilities would be either way.

I hope this has been insightful and will help you if you are in a similar position to our oversees landlord. If you would like any further advice on your next buy to let purchase in Nuneaton, please give me a call on 02477 674545.