Burton property values increase by £220.15 per week

Last week, a landlord came in to our office to discuss the rising property values in Burton. He owns a varied portfolio of rental properties, primarily in Burton with a couple in Swadlincote and Derby, so it is interesting to compare the increase in property values around the area.

Over the last 12 months the average property value in Burton has risen by nearly £11,450, from £157,100 to £168,550. This is a very reasonable 7.3% increase, which if you look at it on a weekly basis, average property values in Burton, throughout 2013, have increased by an impressive £220.15 per week!

When I looked at some of the surrounding towns, Derby has had a lower average increase in property values, at around £93.26 per week, whilst Swadlincote has an even more modest average increase of around £64.75 per week. It is, nonetheless, a rise in average property values to suggest the market is recovering steadily in our area – good news for home owners and landlords alike. Finally, when we looked at the values for detached houses in Burton, they rose by an even more impressive average of £336.53 per week.

When considering this landlord’s buy to let portfolio, the rental values have remained fairly stable during the 12 months. They are slowly recovering to the average of around 5 years ago, therefore it could be a good time to invest in the property market in Burton. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in rental market, please come and see me at our office on High Street.

Look out for our Investment Property Sales coming soon!

Do semi-detached properties in Hilton make good Buy-to-Let Investments?

At the Graham Penny Auction last Friday I got talking to someone who lives in a detached house in Hilton. He wanted to purchase his first buy to let property and had noticed our local presence and previous articles, so was interested in getting to know the industry a little better.

As he has lived in Hilton for over 8 years and he felt comfortable investing there as he knew it well, we started to discuss the property market in the area. Firstly, we found that 87 semi–detached properties had sold in the area since 2005.

Property values in the area have risen, on average, around 84% over the last 10 years, however, most semi’s have beaten that rise. For example, a two bedroom semi--detached property on Foss Road rose by 122%, from £43,000 in 2002 to £95,500 in 2012.

When we looked back to 1999, a three bedroomed semi-detached in Hilton was bought for £33,500 and sold in 2008 for an impressive £137,000. With good capital growth you would expect yields to be comparatively lower, but most two bedroomed properties in the area can be picked up from £100,000 to £110,000 and could have achievable rents of £500 to £525 per calendar month. This is an attractive 6% return!

If you would like to talk to us about your potential investment, please come into our office on the High Street.

INVESTMENT DEAL OF THE DAY

2 bedroom flat for sale

£107,500

Caroline Court, Burton-On-Trent

Summary
*** must be viewed *** Well positioned close to Burton Town Centre and being beautifully presented makes this apartment an ideal opportunity for a first time buyer, young couple or an investor. The apartment offers the opportunity to move straight in without having to do any work.

Description
Well positioned close to Burton town centre and being beautifully presented makes this apartment an ideal opportunity for a first time buyer, young couple or an investor. The apartment offers the opportunity to move straight in without having to do any work. Parking is also catered for with the apartment coming with one allocated parking space. To arrange a viewing please contact Burchell Edwards.

David says....
As stated, this is a well positioned property in a popular area. I would expect to achieve a calendar monthly rental of between £475 and £500. Based on the asking price, this would offer a potential return of 5.6%

SEE THIS PROPERTY ON ZOOPLA

PROPERTY AUCTIONS... TO BUY OR NOT TO BUY...?

On Valentines Day, the first Derby Graham Penny Auction in 2014 took place.
As usual the Professional Properties team were in attendance to what was one of the busiest yet.

Although it is my colleague, Simon, who is plastered all over our exhibition display, it didn't stop me chatting to plenty of potential buyers from the Burton on Trent area and picking up 4 pieces of new business so, all in all, it was an excellent day!

Is buying at auction a good way of acquiring property.....?

The Fors...

Potential Bargins - The obvious benefit of buying at auction is the appealing thought of finding your perfect home at a price that is considerably less than market value - or indeed - a fantastic investment opportunity offering a healthy return! Of course, it does depend on how many other bidders are also in the room looking for the same bargin -  the popular lots can attract a significant number of bidders.

No Gazumping Allowed - Bidding is open and fair and the highest bid wins!  It really is that simple. Once the auctioneer's gavel falls, the sale is complete and binding. Exchange of contracts takes place there and then with, usually, a 10% deposit payable instantly.

It is Quick - The timescales involved is remarkably quick. Once exchanged, the property, in most cases, will be set for completion after 21 days.

Something Different - As I've already said, prices are usually extremely competitive and often cheaper than in the estate agents window. There is also a wider choice of property, including repossessed homes needing a quick sale and unusual properties that might otherwise prove to be difficult to sell through normal channels. This is particularly beneficial to investors who may not necessarily need to buy in the area in which they live.

The Againsts...

It's easy to get carried away! - It is so easy to get lost in the excitement! Set your maximum price and stick to it. There will be the usual property related costs; solicitors' and surveyors' fees, the auctioneer's fee and, dependant upon sale price, stamp duty. Properties can sometimes sell prior to auction. Check with the auctioneer to confirm that your property is still being offered.

Sort your Finances - The quick process of an auction purchase means that you will have to organise things that would normally take a while if buying traditionally. You need to have searches and legals completed before bidding. You will also need to have the remaining 90% completion monies available as 21 days is not long enough to get this organised!

You can't change your mind! - Once the gavel falls and you hear "SOLD", if you are the winning bidder then it's yours. You should be well prepared in advance. Scour the property details in the auction catalogue and visit the property. If renovation works are necessary, prepare a schedule of costs to ensure the deal stacks up. If you buy it and find out it backs onto a power station, there's no going back!

Lose Your Deposit - If you back out after exchange of contracts, you will lose your deposit.

It can be scary and, believe me, your heart will be racing if you are bidding. It is the most exciting way to purchase property, however, remember the golden rule...

BE PREPARED!