Mill Street - Large 3 bed - 5.5% return

This is a must view!!

We have recently let as property 3 doors down from this for £550 pcm. The large rooms overcome the lack of parking and it should let easily at £550 pcm as it has been fully refurbished. 

This would give a return of 5.5% - click on the link to see the quality of the finish throughout..

http://www.rightmove.co.uk/property-for-sale/property-42939007.html

Rising Court costs for Possession Claims... How to protect yourself

It’s always a sensible idea to make sure you have the right protection if you’re a landlord but new government plans to increase fees for the eviction court costs could make an oversight far more painful to your bank balance.

From the 22^nd April 2014 the government plans to increase the cost of application for possession and accelerated possession claims from £175 to £280 and the cost of possession claim online is due to rise from £100 to £250.

This will effect landlords finding themselves in the already unfortunate position of having to start eviction proceedings if a tenant is in arrears or refuses to vacate a property. Thankfully these situations are quite rare but when they do occur, they can be very costly in court fees but also in unpaid rent and in some cases, property damage.

At Belvoir Melton Mowbray we help our landlords with any possession proceedings or rent arrears notices as part of the service. We also offer protection for unpaid rent and court costs from as little as £11 per month. This also includes 75% of the rent for the 2 months after the property has been taken back.

Please contact Charlotte or Katie to discuss the Rent Guarantee and Legal Expenses Cover available for Belvoir landlords in more detail.

Is a Victorian Terrace Property on Kings Road still a good place to invest?

An investment landlord, who lives in Melton Mowbray, who attended our first buy to let event in 1999, recently asked this very question. He had been wise enough to invest in a property on Kings Road in 2000 and was considering where to invest next.

Sold house prices on Kings Road are 1 % above where they were 5 years ago which means they are at the same level as before the credit crunch hit. Purchasing a property now at the current average price of £ 111,000 and securing an average rental return of £525 pcm would give you a yield of 5.6%.

Victorian properties often require modernisation but this should be reflected in the purchase price and once the electrics, heating, windows and roof are in good order there should not be too many ongoing maintenance issues.

A lot has changed in the last few years since 2000 but it would seem the right property in this area could provide a good return and should offer stable capital growth. Many of the landlords we met at the first buy to let evening are still with us now and have seen their investments grow. The market is a very different place but there are still good returns to be had in Melton Mowbray. 

Regency Road, Asfordby -Currently let at £550 pcm giving a 5.7% return

This property in Asfordby is currently let at £595 pcm which if purchased at the price of £125,000 would give an investor a return of 5.7%. 

The property is in excellent condition and as it has off road parking it has always let well in the past

View it before it sells!!

http://www.rightmove.co.uk/property-for-sale/property-42756907.html

Limes Avenue out performs Wymondham Way??

I recently spoke to a couple who were considering buying their first buy to let property in Melton Mowbray. 

They live in a nice 4 bed detached house near the Country Park and wanted something so it would add to their pension plans. We discussed investing in a rental property suitable for the high number of families looking to rent in Melton Mowbray, so it would need at least 3 bedrooms. 

One of the most important considerations you will make before investing is the balance between annual return (yield) and the annual value increase (capital growth).

Wymondham Way on the Country Park estate is a very popular area for families. As they lived there themselves, we looked at the average three bedroom semi-detached house sells at around £152,000 and rents are roughly £625 per calendar month. However, we also looked at Limes Avenue. On that street, a three bedroom terrace property  can be bought for around £112,000 and the achievable rents can be around £525 per calendar month. The yield which could be achieved from property on Wymondham Way is around 4.93% per year, which is compared to the possible 5.6% per year on Limes Avenue.

I was quite surprised to find that three bedroom terrace properties on Limes Avenue have outperformed those on Wymondham Way. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties

Since the turn of the Millennium,  a semi detached house on Wymondham Way has increased by around 118% whilst the properties on Limes Avenue have increased by only 83%. It depends if you want capital growth or yield. 

127% increase in the number of people renting property in Melton Mowbray

A Landlord  from Shelford came into see me in my office on Burton Street the other week and asked how much demand for rental property there was in Melton Mowbray?

I told him that I had done some research on the recent census results show the number of households renting a property in Melton Mowbray increased between 2001 and 2011 by 127%!  The figure has increased from 606 households to 1378 households in private rented property in Melton  Mowbray.  The demand for rental properties continues to increase and the lack of new build developments in the town limit the supply of family properties.

On a national level in the UK and locally in Melton Mowbray, we are seeing a cultural shift in favour of renting property rather than buying which looks set to continue into 2014 and beyond. The figures show Melton Mowbray is a region of homeowners but the younger generation are now choosing to rent rather than buy, so could this be the time for you to become a landlord and take advantage of this growing market?