Buy to Let investment in Nuneaton with a yield of 6.75%

Good Afternoon to you all!

I thought I would share this house that I came across today on Zoopla, in my opinion its what I like to call a ‘star buy’…let me tell you why!

Its a 3 bedroom semi-detached property located in the hilltop area of Nuneaton, close to the A444 for commuting, its a ten minute walk into town, and is ideal for families looking to get their children in to the schools in that area! Internally judging from the pictures there really isn’t anything that would need doing to the property in order to rent it out straight away. Its clean, modern and has the appeal of a driveway and a decent sized back garden.

The property is currently on the market with fosterlewis&co with an asking price of offers over £120,000. If you were to offer the £120,000 and it got accepted, you could then look at renting the property for around £675 PCM, this would give you an annual yield of 6.75% in your first year! As you would have read in a previous article, rents are set to rise around 20% in the next few years so with this in mind – receiving a rent of £810 PCM would then in fact give you an annual yield of 8.1%…nice figure right!

property particulars

Id recommend a viewing on the property ASAP as I’m sure we have all learnt the hard way…properties in Nuneaton don’t tend to be on the market long these days, especially not of this size and in this area! If you would like me to come with you to view this property or any other and offer my humble opinion, I would be delighted too! Please feel free to give us a call on 02477 674545 with any buy to let issues/queries you may have!

Nuneaton rents set to rise by 20% in the next 5 years!?

Recent research from the Royal Institute of Chartered Surveyors has revealed that rental rates in the UK are expected to increase by around 20% over the next five years.

Surprisingly, the rise is not expected to be as fast in the capital, with the research expecting to see only a 15% hike in the capital – good news for renters who are already stretched to meet high rental rates in one of the world’s priciest cities.

When we look at houses prices in Nuneaton in the last 5 years, they have increased by 28.17% with rental incomes increasing at a much slower rate, so to see this level of increase is great news for all of us buy to let investors!

One of the reasons we could be seeing such a significant jump is the ever-increasing level of demand being placed on the private rental sector. With property prices expected to increase 18% in the same timeframe, the shortage of available properties is increasing, with tenant demand outweighing the number of new properties being brought to market. This trend has been building for three years, and as more and more people turn away from buying, and look towards rental option as a long-term housing solution, it’s not a trend that the experts see changing. This increase of rental demand is very evident in Nuneaton, no sooner has a house been advertised for rent …its been snapped up by the first person to view! Avoiding void periods is one benefit, another being you can be more specific and selective with the tenant you want for your property! We have found that are we getting less and less DSS tenants applying for properties which could also be due to the huge drop in unemployment in Nuneaton.

Whilst the rise may be welcomed by landlords who are now facing heftier bills, taxes and more stringent legislation to abide by… it is bad news for tenants, with many experts predicting that the hike in prices will see tenants reliant on housing benefits forced out of the private rented sector. Even though, in my humble opinion, with the banning of application fees coming into play, and landlords inevitably having to take the hit in one way or another, rent increases will fairly cushion the blow making it fair for both parties. A third of respondents to the RICS research admitted that they believe that people on lower incomes are being pushed out of the market, with 29% blaming caps on housing benefits..

It’s not all bad news for tenants though. Over 50% of landlords said that they would be prepared to rent their property to households in receipt of housing benefit, or homeless people, if help was offered through central government to provide financial guarantees for deposits and rent…And quite rightly so! Landlords need as much reassurance as possible when it comes to guaranteeing rent these days.

If you would like to speak to us more about this, or any other buy-to-let related issues you may have, please feel free to give us a call on 02477 674545, we’ll be happy to hear from you. Alternatively, feel free to visit our website to see how we can help http://www.qthomes.co.uk/

Nuneaton Buy to let opportunity ready to let!

Good Afternoon to you all, i hope the wet weather isnt detering you from wanting to find that next ideal buy to let opportunity? it certainly isnt stopping me!

Whether you are a first time investor looking for a property which you can rent out straight away, or an investor looking to build on their existing protfolio, i think this property could be ideal!

Its a 3 bedroom end terrace house on Marston Lane, Atlleborough. It has a driveway for 2 cars, good sized back garden, conservatory and best of all its ready to be rented out upon completion. We have recently marketed several properties in this area- maple park and attleborough- and within 24 hours of them being advertised, viewings and applications have been submitted. Neddless to say, this is a highly sort after area for renters. Not only is it in the catchment for the local primary and secondary schools, but it is ideally situated for commuters with motorway links to the M6 and M69 being very close by.

The property is on the market with Up Estates with an asking price of £140,000. I think offers in the region of £135,000 would be highly favoured but be warned, i cant imagine this property will be on the market for long so viewings are reccomended asap. Rental wise- asking between £675 to £695 would definitely be achievable, and this in turn would give you an annual yield of 6.18% with the higher rental income. As i always point out, its important to look at the bigger picture also and what your investment property will be worth in a few years time, and the fact these houses rarely come on the market in this area, combined with the high demand for the area, can only mean this would be a sound investment.

property particulars

If you would like me to come with you on the viewing of this or any other property to give my opinion on its investment potential, please feel free to get in touch on 02477 674545

The drop in unemployment in Nuneaton, and how it affects the Nuneaton property market.

It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, almost 9 months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is ‘Yes’ and ‘No’.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Nuneaton are 0.4% down month on month so is this the time to panic and run for the hills?
Doom and Gloom then? Well, let me consider the other side of the coin…

Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Nuneaton property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Nuneaton property values dropped by an eye watering 1.62% in September 2012 and 0.61% in November 2014 – and no one batted an eyelid then.

You see, property values in Nuneaton are still 8.58% higher than a year ago, meaning the average value of a Nuneaton property today is £158,621. Even the shares of those new home builders Barratt have increased by 43.3% since early July and Taylor Wimpey’s have increased by 37.3%. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years – but only slightly.

The Nuneaton housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Nuneaton and Bedworth Borough Council area stands at 1,384 people (1.1%), which is a huge drop of 26% from this time last year.

However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires, then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue for borrowers as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!

Forget Brexit and yes, inflation will be a thorn in the side – but the greatest risk to the Nuneaton property market is the insufficient supply of properties keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t!

How much would it cost to buy all the houses in Nuneaton?

This fascinating question was posed by the 14-year-old son of one of my Nuneaton landlords when they both popped into my office.
The very next weekend, I sat down and calculated what the total value of all the properties in Nuneaton are worth … and just for fun, worked out how much they have gone up in value since his son was born back in the autumn of 2002! I used information from the latest census, land registry and the ONS.
So, here you are…
In the last 14 years, since the autumn of 2002, the total value of Nuneaton property has increased by a staggering 98.7%. Interesting, when you consider the FTSE100 has risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.

When I delved deeper into the numbers, the average price currently being paid for Nuneaton households stands at £158,621… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Nuneaton; the average numbers come out like this ..

Nuneaton Property Market:

Average Value of a Detached Property: £252,606
Average Value of a Semi-Detached Property: £153,797
Average Value of a Terraced/Town House Property:£123,336
Average Value of an Apartment: £87,498

… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are more expensive, when you compare them with the much cheaper semi-detached houses, you can quite clearly see detached properties don’t fare much better in terms of total pound note value of the semi-detached houses.

Total Value of Nuneaton Detached Properties : £3,224,262,984
Total Value of Nuneaton Semi-Detached Properties: £3,122,232,897
Total Value of Nuneaton Terraced/Town House Properties: £1,745,944,416
Total Value of Nuneaton Apartments: £595,773,882

A GRAND TOTAL OF…. £8,688,214,179 !!

So, what does this all mean for Nuneaton? Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Nuneaton remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Nuneaton house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25% interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Nuneaton not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Nuneaton has always, and will always, ride out the storm.
I called the interested boy to tell him my findings… “Oh” he said, “That’s a lot of money…!”

If you have any bizzare wonderings about the Nuneaton property market that you would like answered, drop us a call or and email and we’d be happy to help you get some answers…and maybe even make an article out of it.

Or, if you want to be part of the statistics in a similar article in the future and wish to sell your Nuneaton property, please feel free to give us a call on 02477674545 or visit our website for more information and arrange a free valuation http://www.qthomes.co.uk/

7% yield on a great potential Nuneaton Buy-to-let!!

I think I may have found my favourite potential buy to let star buy property ladies and gentlemen!

As I do every day, I go through rightmove and Zoopla hoping that there is that one property, that hidden gem, that could make one of you lovely buy to let investors some decent yield! And I do believe this property will do that and more!

It is currently a very internally run down property, so it’s a project to be started from scratch- which if you ask me is great! It’s a blank canvas!

It is on the market with Hawkins at £110,000. It is a 4 bedroom terraced house on the Coldwell estate, a stones throw away from George Eliot school. I in fact with one of our landlords not long ago to view an identical house on the same road, the only difference was that it didn’t need quite as much work doing to it. Needless to say, it got snapped up in a matter of days way below asking price as I know the sellers wanted a quick sale!
This house is situated on an ex council estate, but the estate itself over the years has had a lot of work done to it, and alot of the properties are now owner occupied. It’s ideal for families trying to get their children into the High School- George Eliot- as its quite literally on the doorstep. It is also close to the town centre and a short work to Attleborough Village where you have all your local Amenities.

property details

I think you could easily go in with a substantially lower offer of £95k with a maximum offer of £100k. Allowing between 10 and 15,000 pounds to then fix up the house. Once the house has been modified and done up to a high standard, I believe, regardless of area, you could ask £675 PCM rent on this property. The would then give you an annual yield of just above 7%!! Not only that but you would added substantial value to the property which could allow you to take money out of it, in order to buy your next!!
Some property investors, especially those looking for buy-to-lets, like a house that is just ready to move tenants into once the sale is completed, then you get some who would jump at the chance of a project such as this! Different strokes for different folks!
I know the house I went to look at on the same road got snapped up with days, so if this is something you are interested in, I would hesitate in getting a viewing sorted!
If you would like me to come with you to offer my advice, I would be more than happy to come, you can call me on 02477 674545.