Star buy of the week just outside of Nuneaton…

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Good Morning Readers. As I’m sure you are fully aware the Nuneaton housing market is a little slow at the minute…what with most people concentrating on their summer holidays and getting the kids ready for school, so putting their house on the market might not be at the forefront of their minds…I think come mid September/October time we will see a lot more properties being put on the market, so watch this space.

This Morning however, I would like to share with you a house I found on Zoopla which is on the Nuneaton Road in Bedworth( the Nuneaton side of Bedworth) which I think could be a great little earner. It Is being marketed by Reeds Rains with an asking price of £99,950.Its a 3 Bedroom semi detached property which judging from the pictures could do with a fresh lick of paint and a bit of tarting up, but other than that would be good to go for renting. They are looking for cash buyers with no upward chain and it states that ‘clearance is required ‘so there is also the possibility of making a few quid on selling on existing items in the property…bit of a brucey bonus!

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In terms of money, if you spend the asking price, then maybe £1500- £2000 freshening it up you could look at renting it out for a minimum of £650 PCM ( we’ll calculate the rent being £675) which would give you an annual yield of 7.94%.

A house in this location would appeal to all types of potential tenants ranging from commuters- due to the great location for motorway links, to families who either have children in school in Bedworth or Nuneaton. Regardless I don’t think you would have long void periods at all!

If you would like to talk to us about this property or in fact any other you may be considering for buy to let investment purposes, please feel free to give us a call on 02477 674545.

Consent to let for Nuneaton Landlords

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For many Nuneaton homeowners, letting provides an obvious investment opportunity as an alternative to selling. With the right expert help from your letting agent, the matter should be quite straightforward, although there are certain consents that should be obtained if you are to avoid some potentially costly problems.

You will certainly need the consent of your mortgage provider. They are unlikely to object, but you could be in breach of your mortgage terms if you have not obtained their consent before letting your property. They may also charge an “administration” fee. One important thing to check is that there is no clause that increases the interest rate on your loan should the property be used as a “commercial venture”.

If you own the freehold, you should check whether your title deeds impose any restrictive covenants of which the tenant should be aware. For example, there may be a restriction preventing anyone keeping a caravan on the forecourt, or storing building materials for more than a few days. If your property is leasehold, you will have to check the conditions of your lease as there may be similar restrictions and/or you may have to obtain the freeholder’s consent.

Importantly, once consent has been obtained, you must ensure that your tenant is aware of, and complies with, any obligations that you yourself would observe as owner in residence.

Finally, insurance. You should obtain permission from both your buildings and contents insurer. There may well be an increase in premiums where a property is let, although there are insurers who specialise in this. As a minimum you should ensure that you are covered for any third party liability in respect of injuries to your tenant whilst at your property.

Please let us know if you would like us to look over your lease or title deeds to see what consents might be required to ensure your peace of mind for a successful let.

Stockingford star buy of the week with a potential 8.2% yield!!

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A Modern auction…. yes indeed, time are changing, and this 3 bedroom terrace property in Stockingford is currently on the market with Your Move at £80,000. If you are unsure what a modern auction is, here is the information from the listing on Zoopla…

“This property is for sale by the Modern Method of Auction which is not to be confused with traditional auction. The Modern Method of Auction is a flexible buyer friendly method of purchase. We do not require the purchaser to exchange contracts immediately, but grant 28 days to achieve exchange of contracts from the date the buyer’s solicitor is in receipt of the draft contracts and a further 28 days thereafter to complete. Allowing the additional time to exchange on the property means interested parties can proceed with traditional residential finance. Upon close of a successful auction or if the vendor accepts an offer during the auction, the buyer will be required to put down a non-refundable reservation fee of 3.5% subject to a minimum of £5,000 plus VAT which secures the transaction and takes the property off the market. The buyer will be required to sign an Acknowledgement of Reservation form to confirm acceptance of terms prior to solicitors being instructed.”

property particulars

On a plus, this saves you physically going to an auction and bidding against others that may tempt you to bid more than you had allocated, on the downside, if you made an offer and it got accepted, there would be nothing stopping someone else going in after you and making a higher offer which the agents would have to present to the vendor.

A bit about this house- its located in a popular area of Stockingford as it falls in the catchment for one of the desired primary schools in the area, it is also a great location for commuters having the use of the country lanes to Coventry, Solihull, Birmingham etc. I think you would need to spend a good £10- 15,000 on the property in order to get to a high enough standard to then ask £650 PCM rent, and if you were able to do this you would be getting an annual yield of a very attractive 8.2%!!

Id most definitely recommend a viewing of this property, but if you would like to speak to us more about the area or what we think of the house then please give us a call on 02477 674545.

Population in the Nuneaton area set to rise to 142,600 by 2037!

Nuneaton faces a predicament. The population is growing and the provision of new housing isn’t keeping up. With the average age of a Nuneaton person being 39.7 years (compared to the East of England average of 40.2 years old and the national average of 39.4 years of age), the population of Nuneaton is growing at an alarming rate. This is due to an amalgamation of longer life expectancy, a fairly high birth rate (compared to previous decades) and high net immigration, all of which contribute to housing shortages and increasing house prices.

Predicitions for Nuneaton and Bedworth are that by 2037 the estimated population of the area will be 142,600 which is an increase of 13.4% on the 2012 figure of 125,800.

The normal ratio of people to property is 2 to 1 in the UK, which therefore means…

We need just under 8,500 additional new properties to be built
in the Nuneaton and Bedworth Borough Council area over the next 20 years.

Whilst focusing on population growth does not tackle the housing crisis in the short term in Nuneaton, it has a fundamental role to play in long-term housing development and strategy in the town. The rise of Nuneaton property values over the last six years since the credit crunch are primarily a result of a lack of properties coming onto the market, a lack of new properties being built in the town and rising demand (especially from landlords looking to buy property to rent them out to the growing number of people wanting to live in Nuneaton but can’t buy or rent from the Council).

Although many are talking about the need to improve supply (i.e. the building of new properties), the issue of accumulative demand from population growth is often overlooked. Nationally, the proportion of 25-34 year olds who own their own home has dropped dramatically from 66.7% in 1987 to 43.8% in 2014, whilst 78.2% of over 65s own their own home. Longer life expectancies mean houses remain in the same hands for longer.

The swift population growth over the last thirty years provides more competition for the young than for mature population. It might surprise some people that 98% of all the land in the UK is either industrial, commercial or agricultural, with only two percent being used for housing, which means one could propose expanding supply to meet an expanding population by building on green belt – that most Politian’s haven’t got the stomach to tackle, especially in the Tory’ strongholds of the South of England, where the demand is the greatest. People mention brownfield sites, but recent research suggests there aren’t as many sites to build on, especially in Nuneaton that could accommodate 8,500 properties in the next 20 years.

In the short to medium term, demand for a roof over one’s head will continue to grow in Nuneaton (and the country as a whole). In the short term, that demand can only be met from the private rental sector (which is good news for homeowners and landlords alike as that keeps house prices higher).

In the long term though, local and national Government and the UK population as a whole, need to realise these additional millions of people over the next 20 years need to live somewhere. Only once this issue starts to get addressed, in terms of extra properties being built in a sustainable and environmentally friendly way, can we all help create a socially ecological prosperous future for everyone. For more thoughts on the Nuneaton Property market, please feel free to pop in and see us on Bond Street.

Nuneaton Homeowners- keep your property safe this summer.

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When the weather is good, there’s no beating a British summer. It’s the time to enjoy barbecues, outdoor entertaining, children splashing in the paddling pool and balmy evenings.

However, because there is never any guarantee of really hot weather, British households tend not to have air conditioning, unlike other countries where sweltering summers are inevitable. So when things hot up, we tend to revert to our manual air-conditioning system – we open the windows!

The problem is that we often forget to close them again, or we deliberately leave them open night and day, providing a perfect opportunity for burglars and opportunists to pounce. Indeed, insurance companies report a 21% increase in claims following an unforced entry during the summer months. Small easily-snatched items such as handbags, car keys, mobile phones and jewellery are among the most popular thefts; lucrative for the thief and really, really, annoying to lose. Burglars can be in and out of a property in seconds, often whilst unsuspecting occupants are in the garden or watching television in another room.

To add insult to injury, insurance companies will not usually honour a claim for such theft unless the homeowner has “taken reasonable steps to prevent loss or damage”. An open window is an invitation to a burglar and hardly demonstrates the reasonable care demanded by insurers.

There are obvious yet often overlooked ways of avoiding the anxiety of a summer theft, such as:

· Never leave front doors or windows open or unlocked when you are at the back of your property or in the garden.

· Never leave valuables on windowsills.

· Use restrictors on windows so they can only be opened part-way.

· Regularly review your home insurance needs.

· Support your local Neighbourhood Watch scheme.

These are all pointers that you may wish to share with your tenants in order to prevent them having to deal with such crimes.

May we wish you a happy and secure summer!