Thursday, June 22, 2017

What Would It Cost To Become a Buy To Let Investor?

It's one thing to recommend potential investments to people looking to get into the buy to let market but what are the real costs of becoming a landlord? 

I spotted a two bed terrace on the market with Moores Estate Agents for £94,950; this property is just around the corner from us on Regent Street.  It is a busy road but this property would let for £525 pcm.

It looks like a great potential return on your investment of 6.6% but what are the actual costs to get into property investment?

I spoke to Tom James at Thomas Nicholas Financial Services in Melton and he had a look at what buy to let mortgages are available this week.

There is a provider currently offering an 80% loan to value buy to let mortgage which would mean a deposit of £19,000.  On a repayment basis over 25 years the cost would be £372 per month.  With an income of £525 pcm this would leave room for covering the cost of repairs and any tax due.  This is at a 3 year fixed rate of 3.29%.

This is a fee free mortgage but there will be stamp duty to pay (£2850) at the point of purchase along with solicitor fees.

You would expect rents to rise over the period of the 25 years so the margins will only improve and you will have the capital value to help with the pension pot at the end of the term.

If you are considering investing in property give me a call to discuss the costs involved and follow for potential investment properties.

Charlotte Baker 01664 569700

Tuesday, June 20, 2017

6.6% Potential Rental Return - 2 Bed Regent Street £94,950

This 2 bed on Regent Street is on the market with Moores for £94,950. This is a busy road and there is no parking outside but even so it would let for £525pcm. It looks like it might need a new bathroom but the kitchen looks in good condition - it has to be worth a look at a potential 6.6% return on investment. 

It might be the place to take a first step into property investment or add one to an existing portfolio! Give me a call to discuss the pros and cons of the area Charlotte 01664 569700

Thursday, June 15, 2017

Investment Property for sale in Melton Mowbray £139,000

The landlord for this lovely 2 bed Semi-detached property in Melton Mowbray is looking to sell but he has good tenants so would ideally like to sell to a Property Investor. 

It is a great 2 bed with a garden and off road parking so lets really easily. 

It is not yet on the open market but if you would like more details please give me a call on 01664 569700 
Charlotte Baker

How will the General Election result affect the Private Rented Sector in Melton Mowbray?

The General Election provided a result that no one had expected - least of all Theresa May!

There will inevitably be a period of uncertainty for the Nation added to by Brexit negotiations, inflation and reduction in the value of the pound.   The stock market is at an all time high so has only one way to go.

Against this background those with money to invest should look again at the Buy to Let market.   We have reasonable house prices compared with other parts of the UK, making investing in property an achievable aim.
In addition we are currently seeing an increasing demand for houses to rent from a high proportion of the local population choosing and needing to rent.   

Demand for housing will continue to outstrip supply in Melton Mowbray.
We need a balanced housing market for the town; remember that without investors coming into the market the supply of rental properties will be low and rents will continue to increase.

If you are considering investing in a property then think wisely about your opportunities - do your research and remember that as an investment it needs to perform well.          

Come and talk to us about the pros and cons of being a Landlord and take advantage of our considerable experience in the local marketplace.  There is no obligation and we will help you understand all the costings to make sure that it is the right choice for you.

Charlotte Baker 01664 569700 

Monday, June 12, 2017

Family home on Meadowsweet Close - secure yield and good capital growth potential

This is a really nice family home on the market for sale with Richard Watkinson for £180,000. It is advertised as no chain and this is a lovely estate so it would easily let for £ 675 pcm. 

This could give a potential return of 4.5% but more importantly it is the type of house that would see a good rate of capital growth over the long term. With this type of property there would be minimal void periods and maintenance cost should be at a minimum as it was recently built.

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Thursday, June 8, 2017

Melton Mowbray house values increased by over 9% since the last election.

We last went to the Polls in May 2015 and a lot has changed for the UK since then.    So how has this affected the Melton Mowbray housing market?

There is a lot of talk at the moment of how Brexit could affect the housing market.    I believe a lot of it includes the London property market which could be greatly affected as there is so much foreign investment to consider.

I wanted to look closer to home; I like to understand how the properties my landlords have invested in have performed for them.   Many of my landlords have invested in Melton Mowbray as they are local to the area and investing in a location you are familiar with will always feel a safe option.

Give me bricks and mortar any day over stocks and shares!

I looked at the properties in LE13 and LE14 to see what had sold and what prices had been achieved.

I researched sold prices for detached and semi-detached since May 2015.   Interestingly I found that overall house prices in LE13 and LE14 have seen an average increase of 9.09% in that short time.

Furthermore, since May 2015, semi detached properties in LE13 had seen a 4% rise in value; detached properties had seen an average of 13.54% increase during the same period.

Who knows what will happen over the next 2 years?    I am sure of this – people will still need a roof over their heads and with an expanding population, a good location for employment and education, I believe the Melton area will continue to be in demand by buyers and renters alike.

The high prices seen in the London property market may take a hit.   But if you are looking at ‘buy to let’ and choose wisely then you can have a successful property investment.

Contact me for honest rental returns on potential investment properties - Charlotte 01664 569700