How can you find a good property deal in Burton?

The subject of a lack of Burton property bargains over the last couple of years has always been near the top of most Burton landlord’s thoughts. I have built up an extensive database of every property sale in Burton since the early 2000’s, so are able to give an objective and unbiased opinion on what (and what doesn't) make a good property deal /investment. Knowing what is and what has happened to the property market in Burton, compared to say Derby, Nottingham or Loughborough, enables me to spot any trends or opportunities for buy to let landlords.

 
Here are some bargains that I spotted at the time, and now they are completed, wanted to share with you. A lovely 2 bed terraced on Wyggeston Street, just off Calais Street in Burton sold in March 2011 for £58,000. Admittedly it did need a little TLC, but roll forward a couple of years later and the house came back for sale in this Summer (just gone), sold quite quickly and completed in November 2013 for £93,000. If the property investor had instead put the money in the bank, that sort of return would have seen an annual interest rate of 19.06% per annum.

The next one, whilst not a buy to let investment, just goes to show you need to consider capital growth. If a landlord had bought it, the yield would have only been around 3% to 4% a year, but by spotting a bargain back in 2009, someone bought a very nice barn conversion in Hoare Cross for just over £275,000. It sold again for £460,000 a few weeks ago. An overall increase of 65% not bad when the average in Burton has been nearer 12% in the same time frame!

Whether you are a landlord of ours or not, drop by our offices for any advice and opinion on where the bargains are in Burton. I can guide you on what (or not) to buy. I don’t charge for my advice, so I can give an impartial opinion, without any conflict of interest to our landlords. Feel free to pop through the door of our offices on the High Street or send me an email to davidm@professionalproperties.co.uk

Branston Houses or Bungalows – which is the best for Investment?

Last week, a couple from the Branston area of Burton came in to discuss with me, them potentially investing in the Burton property market for Buy to Let for the first time. As my regular readers will note, one of the most important considerations you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. However, another consideration is location and the type of property you could buy. They live in that nice modern estate built around the turn of the Millennium in Branston, just after the Doctors surgery, and close to the Trent

With this in mind, they thought they might buy one in same area, as they knew it well. It’s just they couldn't decide what type of property to buy. One option would be a three bed detached house in Branston. I recently saw a very nice one, with an integral single garage sell for the late £170,000’s. Considering it sold for £92,000 when it was built a little over 10 years ago, that’s a rise of 93% in value. Current rents achieved for such a pretty house would be in the order of £700 to £750 per month, giving an annual yield of up to 5.1%, When you consider property values have risen by around 5.1% in Burton in the last 12 months, that’s not a bad return in anyone’s books.

However, I suggested something a little different, a bungalow in the Branston area? Semi detached bungalows can be purchased for £110,000 to £130,000 and can achieve rents in the £550 to £600 per month area, again totally dependent on condition, presentation and layout. The initial cost of buying would be much lower and the yields slightly higher at 5.5% to 5.8% per year. It goes to show you need to think differently about this housing market in Burton. If you would like any advice on choosing properties, come and see us at our office on the High Street.

You can email me at davidm@professionalproperties.co.uk. Our website can be found at www.pplets.co.uk

The Repton housing market outstrips parts of Burton town centre

In a blog earlier in the month, I spoke about a conversation I had with one of my landlords who lives in Repton and has property to let in the Evershed Way area. If you recall, in that article I said  the annual yield/return from the landlords buy to let investments would be 6.5% per year if he were to buy another property in the Evershed Way area, but only 3% per year in Repton.
We went on to talk about that these yields do not reflect the period’s when there is no tenant in the property (and thus no rent). These void periods (where there is no tenant and thus no rent) are much higher in the Evershed Way area compared to properties in Repton, but I also said property values over the last 10 years have also increased at a much higher rate in Repton than the Evershed Way area and it this I want to talk about in this article.

I have an extensive database of all the property sold in Burton, going back to around the mid 1990’s. It enables me to spot trends in the local Burton market and give that advice and opinion to existing and new landlords alike. That database came up with some interesting information, which I shared with my landlord and now I want to share with you.

An standard terraced house, in the last 10 years in the Evershed Way area has risen in value by 26.3% on average whilst property in Repton have seen their property values rise on average by 51.2%, nearly double that of the Evershed terraced houses. It gets even more interesting when some of the pretty large executive detached houses in Repton have seen a rise of between 75% to 85% in that time. Like I said last week, annual yield/return is not the only factor when choosing an investment property, as you should also consider how long it takes to find a tenant and the potential increase in its value.
I look at the whole of the Burton market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on the High Street.

www.pplets.co.uk

Who you gonna call?

The phrase "scientia potentia est" is a Latin aphorism often claimed to mean "knowledge is power". It is commonly attributed to Sir Francis Bacon, English philosopher, statesman, scientist, jurist, orator, essayist, and author, although there is no known occurrence of this precise phrase in Bacon's English or Latin writings. However, the expression "ipsa scientia potestas est" ('knowledge itself is power') occurs in Bacon's Meditationes Sacrae (1597). The exact phrase "scientia potentia est" was written for the first time in the 1651 work Leviathan by Thomas Hobbes, who was secretary to Bacon as a young man.

"Knowledge is a familiarity, awareness or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning." - according to Wikipedia!

Alright...so I've blown your mind with a bit of Latin and a scientific definition...

Lets speak in English shall we...

If you know what you're talking about, then you are best placed to offer advice and a more comprehensive service than others who, shall we say, are not as knowledgeable!

I make it my business to know what is happening in the local area when it comes to property - especially regarding residential lettings and property investment. Therefore, if you need any advice on letting your property or on where and what to buy, should you be looking for an investment property then I am always available for a chat.

As someone once said.. "Who you gonna call...?"

Call me on 07973 666229 or 01283 517444.

Properties in the Evershed Way area outperform Repton

Following a discussion with one of my landlords who lives in Repton, where we discussed the Burton rental market and where to buy his next property, we had a chat about those terraced houses around the Evershed Way area, and how they compared to his own village of Repton. I did a comparison and was surprised to find that the annual yield/return in Repton is less than the Evershed Way area, in fact over half! The average price of a property in the Evershed Way area is £87,600, whilst in Repton, it is £276,600. The last few months have seen the average rent in the Evershed Way area to be around £475 per month and around £678 per month in Repton. This means the annual yield/return would be 6.5% if you were to buy a property in the Evershed Way area, but only 3% in Repton

This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how long it takes to find a tenant. The average time it takes to find a tenant in the Evershed Way area can be up to four weeks, whereas in Repton a tenant is usually found in days. If you take into account the extra weeks of void period for your property every year, you are losing rent and therefore annual overall return from the property. Also, property values over the last 10+ years have also increased at a much higher rate in Repton than the Evershed Way area. This is something I will look at in the coming weeks.

We can help you to find the best investment property with our specialist lettings advice. It is in our interest that you buy a property which will rent well. If you would like any advice on choosing properties, come and see us at our office on the High Street. You can call me for a chat on 07973 666229.