Thursday, 17 December 2015
I was talking to one of my landlords the other day about the impending Christmas festivities and her plans for next Year, when she explained there were no property bargains for her to buy in Eastwood or the surrounding area. With prices having risen recently it’s always easy to fall into the mind-set that the bargains have gone. So after having a quick look here is what I discovered in terms of bargains in and around Eastwood.
A 2 bed terraced house on Maws Lane, Kimberley, sold in 2007 for £105,000. In September of this year (2015), it sold again for £57,000, a drop in value of nearly 20%!
Another 2 bed town house on North Street, Langley Mill, sold for £76,000 in August this year, whereas back in 2007 it sold for £90,000. A near 16% reduction. These are excellent value properties, even before taking inflation in to account.
Finally, one of those nice 1900s three-storey town houses on Garden Road, sold for £108,000 in the Autumn of 2007. Considering property values are approaching those being achieved in 2007, some lucky person picked up a bargain in the Summer, when it sold again for £96,000.
As we ourselves don’t sell property and don’t charge for our advice, we can give impartial advice without any conflict of interest to our landlords. Whether you are a landlord of ours or not, drop by our offices or give us a ring if you would like any advice.
Thursday, 10 December 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Heanor and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Heanor....
There are 249 streets in the DE75 postcode with 8,384 households and nearly 31% of all those houses (2,597 to be precise) have changed hands since 2005.
Compared to the national average - Heanor has 40% more detached houses, 15% more semi detached houses and as for flats – there are very view with less than 1% of housing stock in Heanor being made up of flats – compared to the national average of around 17.5%. Interestingly, around only 4% of all households across Derbyshire are flats, although this figure will no doubt increase as more are built.
This is all a good indicator that Heanor is good place to buy property in. If you would like more useful facts and figures pop in to see us at our offices.
Thursday, 3 December 2015
I was recently asked why there are so few properties to rent on the Shipley View Estate. I did some research and found that since the beginning of 2015, only twenty five properties have been available for rent on the Shipley View Estate, one of Ilkeston’s most popular housing estates. Now whilst the market may be starting to slow a little now as we approach Christmas (which starts for many around the 18th December!), as more people focus on the holidays, many of the properties that have been to let on the Shipley View Estate this year have let in typically 2 to 3 weeks, proving it’s popularity.
As we speak in early December 2015 there are several 2-beds available but they haven’t been on the market for long – all less than two weeks - and probably won’t remain so! So the fact is that actually there is property to rent on the estate – tenants just have to be quick about reserving theirs when they come up.
We can help you identify property values and other useful property related information to make sure you can get everything you need about your future investments. Here are just a few property facts about Ilkeston…
The average house price is around £142,500, and the average income of someone living in Ilkeston is £18,530 per year. Price to earnings ratios are effective measures of the relative affordability of property in a given area (the higher the number – the more expensive it is to buy). In Ilkeston it is the ratio is 7.69 compared to 8.75 across all of Derbyshire and 11.21 nationally. Of course these ratios are dwarfed by those in places such as Kensington & Chelsea where the ratio is a staggering 46.94!
Thursday, 26 November 2015
Some experienced landlords and I had a discussion about the property market in Eastwood, when the subject of risk against returns arose.
All landlords are different in the way they deal with property. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start getting involved, it is a good idea to have a plan.
For a low risk investment, you could buy property in and around the areas of Eastwood which are perceived as being more desirable, such as Mill Road and out into Newthorpe and Giltbrook, where you may be able to achieve an annual yield of around 4-6%. Following my article a few weeks ago, if you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-8%. This level of risk can be typically taken with cheaper terraced houses around Eastwood, in Lynncroft for example, or the ex-local authority properties off Queens Road South. If you are after annual yields of 8% and over, you could take more of a risk with houses of multiple occupancy or properties in the poorer areas of town which may attract tenants of a low quality. We manage some HMOs across the area and if they are well presented, well positioned and well managed – they will attract employed tenants and they can be very good income-earners for landlords.
If you would like any advice on choosing properties, come and see us at our office or email us.
Thursday, 19 November 2015
We always like to keep an eye on what if happening in our local markets, which is helpful for when landlords decide to pop in and ask our advice, but also helps keep us close to the latest trends.
Looking in and around the Belper area I found that a four bedroom 1920s semi-detached property on Ecclesbourne Avenue, in Duffield, was bought for £265,000 in the Autumn of this year. The same property sold for less than £25000 in the Summer of ’98! This is 963% or almost a tenfold rise, a ten-bagger or just a plain 1000%! However, prices in the town during this same time period, some 17 years, rose by 179.6%, so it should have sold for a little under £70,000 if it kept up with the towns average house price. This could be down to that highly potent mixture of buying property a little under-value, adding value and modernising, then letting time do it’s work. Whatever happened here though that is a staggering rise!
Meanwhile a 3 bed detached house on Eyam Walk sold for £110,000 in May 2014, and was sold again this August for £125,000. This is a solid rise of 14%, but average prices in this time have risen by a little more at 17.3% in Belper.
Finally a 1900s 2 bed semi-detached on Belper Road sold for £124,900 in January 2013 and then sold again £158,000 in September of this year a decent uplift of 27% or around 9.2% per annum.
With both owner-occupier and rental demand for quality properties in these areas always being strong, it’s worth keeping an eye out for the next bargain.
Our expertise is in the residential property market, so please feel free to talk to us about our area or any properties you may have your eye on.
Thursday, 12 November 2015
What with many builders in the region starting to go into over-drive to build their developments, I often get asked about new-build developments so I thought I would look at some in the Heanor area. Looking at some of the new build developments that have sprung up off the Heanor Road leading out of Heanor and towards Smalley, there are two that are rapidly being established now – Smalley Pastures and Smalley Manor.
Smalley Manor, being built by William Davis – a privately-owned family business – consists of 2, 3 and 4 bedroom properties and is located behind Marina Road and the Grange. Meanwhile, Smalley Manor, being built by Peveril Homes, also has a range of houses and also some smaller bungalows.
Typically, it generally takes a short amount of time to let properties on such new-build developments. Tenants love the fresh appeal of crisp, newly built properties and whilst they will still consider the proximity of the local amenities and transportation links, they often will compromise a little to get into a new home. They are not unlike house-buyers in this respect, many of whom will “settle” a little in terms of location (and size/space) in order to acquire a newly-built abode. Both developments are on the convenient side of town for access to Derby, close to Heanor Gate Science College and are only a mile or so from the centre of Heanor itself.
A three bedroomed semi-detached property or townhouse, could be purchased for around £180,000 to £200,000. The rents that could be achieved for these are between £595 and £675 per month. This means landlords can potentially expect yields of around 4.5% per year. When this is factored into relatively short voids and good growth prospects, especially as the states mature, these levels look reasonable.
Two bedroomed houses have been reserved at around £130,000 and they typically can let for between £525 per month, meaning yields of around 5% per year are achievable.
If you have already done a search for property or are trying to figure out where to start, we’re happy to advise on properties before you buy. It’s in your interest that you purchase something that can let, whether you are currently a Spruce Tree Lettings landlord or not.
Thursday, 22 October 2015
A landlord recently missed his chance to buy a nice three bed semi-detached property on Buxton Avenue, in Heanor, as it sold quickly. He asked me if there something special about the area, so I did a little research.
I have included roads surrounding the Buxton Avenue area such as Sunningdale Avenue, Owers Avenue and Coppice Drive amongst others in my findings. Many of these properties were built around the 1950s.
A number of the three bedroom semi-detached properties have sold in the area for between £90,000 and £135,000 in the last two years. Remember though that to prepare a property as a rental investment could take additional funds and depending on the work needed could be as much as £10,000, or more, so some of these properties may have needed some care and attention. These properties would achieve rents of around £495-550 per month, which would provide a reasonable annual yield of around 6%.
The three bedroom semi-detached properties in the Buxton Avenue area are now asking a minimum of £125,000 and upwards. The older houses offer the tenant and buyer larger rooms, which can be more appealing.
Even though the purchase price is heading upwards, the rents being achieved are also edging upwards, meaning the annual yield is still good especially as the houses have seen great increases in value and are popular with buyers and tenants.
So, if you would like to talk to us about property in our area please feel free to visit our offices.
Thursday, 15 October 2015
In previous articles we have found that ex-council properties can achieve good annual yields of well above 7%. Yet their average value tends to stay quite stable when we compare this to the average capital growth on the more modern estates of say Shipley View, which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Beauvale Drive sold for £88,000 in April of this year having originally sold for £65,000 in 2011 which is a return of over 35% in less than 4 years. Another example of good capital growth from an ex-council property is a three bedroomed semi again on Beauvale Drive which was sold in 2011 for £103,000, following an increase in value of around 30% in just over two years.
The best performing property for capital growth in 2015 so far was bought in September 2011 for £69,000 and has recently sold for £160,000. This is a significant return of 132% - or over 25% per annum. However, this was not a typical rental property, it was a detached house on Cotmanhay Road!
If you would like some advice about buying to let, please come and see us at our offices.
Thursday, 1 October 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Ilkeston and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Ilkeston....
In the DE7 postcode there are 23,090 households, of which 26% are detached, 40% semi-detached, 32% terraced and only 2% are flats (half the county average in Derbyshire). Some 71% of all these properties are owner-occupied and around 15% are privately-rented. Looking at the sales activity over a quarter of all those houses (7,179 to be precise) have changed hands since 2005.
Compared to the national average - Ilkeston has 10% more detached houses, 20% more semi detached houses, about the same percentage of terraced houses and 89% less flats. This is a good indicator that Ilkeston is good place to buy property in.
If you would like more useful facts and figures pop in to see us at our offices.
Thursday, 24 September 2015
A landlord I know was interested in properties on Nailers Way, in Belper. She came in to our office to discuss the value of property suitable for renting on the street and how this has changed over time in terms of the yields one can achieve.
Looking back over the last 10 years, between 2005 and 2007, before the 2008 slowdown, 2 bed terraced and semi-detached houses tended to sell from around £95,000 depending on aspect, condition, whether mid-terraced or not and so on.
Interestingly, between 2011 and 2012, these properties were still selling on average at around £110,000, showing good resilience following on from 2008. Fast forwarding to 2015 however, we can see that 2 bed properties in the immediate area are still tending to push the £125,000 stamp duty threshold, and beyond when looking at newly built properties. Certainly, it seems, she could have done reasonably well in terms of capital growth if she had invested in this area.
We then looked at the rents over the ten years since 2005. In 2005 the average rent for 2 beds was £450 per month, a return of around 5.5%. Looking at the average rents for 2 beds in 2010, they had increased a little to between £475 and £500 per month. Now, in 2015, rents again have edged upwards and are upto £525 per month, giving a return of around 5.3% per month, which is steady in light of the capital growth also shown by these properties.
If you would like some advice with your potential investment, please come and see us in our offices.
Thursday, 17 September 2015
A landlord called me up this week to discuss the affordability of property in Eastwood, with the current regional property market being generally in recovery with increasing house prices. The best advice I can give to those looking to invest in property is one of our secret tricks of the trade. You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.
When we put this to the test, we found that Eastwood currently has an average property value of around £142,500 with the average salary being £19,675. This is a respectable ratio of 1 to 7.24. Meanwhile across the motorway in Hucknall, the ratio of property values to salary is 1 to 7.77, which suggests the property in that town is 7% less affordable than in Eastwood.
Both towns compare favourably though to the overall average of Nottinghamshire where the average property value is £157,600 and the average salary is £18,892, giving a ratio of 1 to 8.34.
This means that property generally in Nottinghamshire is a rather significant 13% less affordable than Eastwood, with a ratio of 1 to 8.34.
This could mean that now is a brilliant time to invest in Eastwood’s property market, while the average value of property is low compared to the average salary. If you would like to talk to us about your potential investment, please come into our offices.
Thursday, 10 September 2015
I was talking to one of my landlords the other day, when he explained there were no property bargains for him to buy in Heanor. We don’t sell property and don’t charge for our opinion nor advice, but we can give impartial advice without any conflict of interest to our landlords. Here is what I discovered recently about finding bargains that I had discovered over the last few months.
A 3 bed semi-detached house, with an ensuite to the master bedroom, on Mundy’s estate sold in 2008 for £159,950. This summer, she sold again for £129,000, a drop in value of 19.4%!
Another 3 bed semi-detached house on Kirkstone Avenue sold in 2004 for £130,000, then sold for £116,000 in May this year. This is a near 11% reduction.
Finally, one of those nice modern detached houses, with an ensuite on Brookfield Way was bought for £164,000 and then sold again for £145,000 – some lucky person saving £19,000 or 11.5%.
All this shows that for the discerning property buyer there is always good value to be found.
Whether you are a landlord of ours or not, drop by our offices if you would like any advice.
Thursday, 3 September 2015
A couple of local landlords and I had a discussion about the property market in Heanor, when the subject of risk against returns arose.
All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.
For a low risk investment, you could buy property in the areas of Heanor which are perceived as being more desirable, such as to the west of the town off the Heanor Road such as the modern properties on Sovereign Way or Sandringham Drive, where you may be able to achieve an annual yield of around 4-6%. Following on from my previous articles, if you don’t mind a slightly higher risk of void periods or a more variable quality of tenant, and you ae prepared to look elsewhere in the town, then you are likely to be rewarded with a higher annual yield of 6-8%. This level of risk can be typically taken with older terraced houses around Heanor. For example we manage many variants on the side streets off the A6007.
If you are after annual yields of over 8%, you could take more of a risk with houses of multiple occupancy or properties in the poorest areas of town which may attract tenants of a low quality.
If you would like any advice on choosing properties, come and see us at our office or email us.
Thursday, 27 August 2015
Last week, a landlord came in to our office to discuss the rising property values in Belper. He owns a varied portfolio of rental properties, primarily in the Belper area, so it is interesting to compare the increase in property values around the area.
Over the last 12 months the average property value in Belper has risen by nearly £10,500, from £211,000 to £221,500. This is a very reasonable 4.9% increase. When we looked at the values for detached houses, this average increase is even greater at £18,300, or 6.5%. This is a considerable average increase of £351.92 per week.
When I looked at some of the surrounding towns, Derby has a lower average increase in property value, at around £63.11 per week, whilst Nottingham has a more modest average increase of around £56.21 per week. It is, nonetheless, a rise in average property values to suggest the market is recovering in our area.
When considering this landlord’s buy to let portfolio, the rental values across the East Midlands have increased by about 6% over the last12 months, therefore it could be a good time to invest in the property market in Belper.
If you would like some advice about buying to let, please come and see us at our office.
Thursday, 20 August 2015
In other articles I have discussed the differences in the rent that could be achieved from properties in the villages around Ilkeston, compared to the town itself. However, I didn’t mention the average values in both and how that affected their annual returns/yields.
The average terraced house in Ilkeston is worth around £98,000, whilst terraced houses in the surrounding villages, such as West Hallam, Stanley, Mapperley, Smalley and Horsley Woodhouse, are worth around 34% more with an average in the region of £131,500. A similar, although not so pronounced difference, was found for the value of an average semi-detached house worth £125,000 in the town, with the value increasing by 17% in the villages at £146,000. For a detached house in the town, you can pay approximately £221,000. This value is increased by 11% in the surrounding villages, with average values of £246,000.
If you are a landlord who is looking to buy property to let, before you buy in West Hallam or any DE7 6 village, you should consider the possible annual returns/yields. In the villages the yields are quite low, at around 4%, compared to around the 5+% annual yield you may receive from properties in town.
Specifically in West Hallam though we have recently had a spate of rentals – all of which have rented well (some positively flying out the door!) and also enquiries about the rental prospects of other properties in the village – so things are looking good for the village-landlord.
So if you would like any advice when choosing properties, you may come and see us at our offices.
Thursday, 13 August 2015
A landlord became ever more curious about the Eastwood’s Buy to Let market after reading our articles about various areas around Eastwood, so decided to pop in and ask our advice.
I found that a small two bedroom cottage on Sydney Street, Kimberley, was bought for £85,000 in the summer of 2011. The same property then sold, after a full scheme of refurbishment, for £170,000, twice the original purchase price, in April this year.
Looking at some of the after photos shows what a lovely job has been done on this one!
A traditional 2 bed terraced property in Noel Street, Kimberley was acquired for £68,500 and then sold for £98,500 in May of this year giving a very respectable gain of 44%. However, prices in the town during this same time period rose by just 12%
Another property, a tidy 3 bed semi-detached house in Charles Avenue, Eastwood, was purchased for £100,000 in July 2013 and then resold in March this year for £140,000, a 40% gain in less than 2 years, compared to the average growth in the area, across the same time period, of some 11%, so it should have only sold for £111,000 if it had merely kept up with the towns average house price.
With rents for semi-detached houses in the area achieving between £550 and £600 per month, average yields are around 6%. I think in terms of a rental investment, this is worth consideration – buying carefully in the first place and assuming good capital growth – which we can definitely can see happening here.
Our passion lies firmly within the residential property market, so please feel free to talk to us at any point about our area.
Thursday, 6 August 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Belper and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Belper....
There are 703 streets in the DE56 postcode with 18,490 households and 17% of all those houses (3,146 to be precise) have changed hands since 2010.
Compared to the national average - Belper has 69% more detached houses, 11% more semi detached houses, 19% less terraced houses and 77% less flats. This is a good indicator that Belper is good place to buy property in.
Looking at the latest Rightmove investor data that has popped into my email in tray, asking prices are up 3% in the last quarter, and 9% this year, whilst the average price of a 2 bed house currently stands at £161,000 and a 3 bed house at £226,000, with overall average rental yields standing at 5.81%.
If you would like more useful facts and figures pop in to see us at our offices.
Thursday, 30 July 2015
I was talking to somebody last week from Heanor, who was considering becoming a landlord for the first time. I meet many such potential first time landlords and it’s always interesting to see what ideas they have. He visited our office to ask us whether buying a property on Old Coppice Side or Buxton Avenue would make a better Buy to Let investment, and which would offer a better return/yield. He knew the area well, as he lived around there some years ago. He knew that both streets were quite close and that houses on Old Coppice Side were, in the main, a little closer to the park. I confirmed that the properties on both streets let and sell well, but I wanted to do a bit more research to help with his choice.
The average price for a property on Buxton Avenue has been £133,278; while on Old Coppice Side it was 16% more, at £154,813. To better understand the investment opportunities available, we took a look at the rents achieved over the last year. The average rent achieved on Old Coppice Side was £560 pcm giving a yield/return of 4.34%. On Buxton Avenue the average rent was slightly lower, at £537 pcm, with a corresponding yield/return of 4.83%. What with the similar yields, albeit with those for Old Coppice Side a little lower, and the corresponding higher capital growth, in absolute terms, on Old Coppice Side (due to the naturally higher average prices), we found both streets to be as good as each other, as there is only a small difference in the yields/returns, which we would not have identified without the extra investigation. In this case it really comes down to the best available property to buy on the day.
If you are a landlord, whether you deal with us or not, feel free to visit into our office on St Peters Hill to ask our opinion on which property investment is best for you.
Thursday, 23 July 2015
Many investors, especially those starting out, like to consider flats as their first investment…but some of our local towns don’t tend to have too many so I thought I would have a look at Eastwood to see what could be gleaned.
There are over 350 flats in Eastwood. This only represents around 1.2% of the housing stock here, with the national average being nearer 17.5% and the average across Nottinghamshire being around 7%. This backs up the impression that there aren’t that many flats around in parts of our region. The “Luxury Apartment” boom of the 90s and Noughties didn’t quite extend this far it seems. The average price of flats with one or two bedrooms in Eastwood is around £107,000, which is nearly 2% higher than 12 months ago.
You can buy a two bedroom flat in the Elevation Place development on Nottingham Road, for £115,000. If a landlord put down a £20,000 deposit and borrowed the rest, they could achieve around £525 per month in rent. Even after paying the service charge, yield on debt could approach 6.5% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing. Other established flats in the area have tended to command lower rents this year – typically upto £495 for 2 beds, but equally they are cheaper to buy.
Finally, let’s not forget about the potential increase in capital value of the property. I was looking at those flats in the Elevation Place development, which was built just before the crash of 2008 and found that they have sold for between £100,000 and £114,000 just before the crash but dropped back to around £85,000 afterwards. These have now recovered and more so to the prices of around £115,000 now and who is not to say we couldn’t see further growth in the future.
If you would like some advice about what could make a good investment, please visit our offices.
Thursday, 16 July 2015
In previous articles we have found that ex-council properties such as those to be found on the Cotmanhay and Hopewell Farm estates in Ilkeston and off St Norbert’s Drive in Kirk Hallam can achieve good annual rental yields of over 8%. Yet their average value tends to stay quite stable when we compare this to the average capital growth in non-council areas such as West Hallam which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Queen Elizabeth Way in Kirk Hallam sold for £62,000 in August last year, albeit in need of some TLC and it was sold again earlier this year for £76,000, which is a gross return of 22.5% in less than 9 months which is equivalent to 35% per annum. Another example of good capital growth from an ex-council property is a two bedroomed on Birchover Place (off the Beresford Road) in Cotmanhay which was sold in March of this year for £85,000, following an increase in value of around 16% in just over a year and a half. In this particular case no real work had been done at all as the property was in very good condition with a lovely kitchen and plenty of garden and off-street parking space.
The worst performing property for capital growth in 2015 so far, however, was bought in November 2006 for £200,000 and has recently sold for £153,000. This is a significant decline of 23.5%. However, this was not an ex-council property it was modern detached bungalow, which shows that whatever you are buying, caution is always advised.
If you would like some advice about buying to let, please come and see us at our offices.
Friday, 10 July 2015
A landlord I know has owned a few properties on Mill Road in Newthorpe, for the last seventeen years. She came in to our office to discuss the possible ramifications of the emergency summer budget to her as a private landlord (certainly a lot of discussion on that!) and also discuss the rise and fall of property prices on the street and how this has affected her yield over the years.
In 1997, when she purchased her first property on Mill Road, the average value of a semi-detached house on the street was £36,650 which had a sharp rise to £98,000 by 2004. This rise in value continued, with average values of semis being £125,000 at the height of the property boom whilst a terraced house on Mill Road had an average value of just a little under £100,000. The value of a semi-detached property soon dropped in 2011 to £108,000, with the average value increasing to around £124,000 last year.
When she told me of the rents she had achieved on the street, they seem fairly stable over the seventeen years. She remembers the average rent was £450 per month in 2004 and is now around £550, dependant on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 5.5% on Mill road at the moment.
If you would like some advice with your potential investment, please come and see us in our offices.
Thursday, 2 July 2015
Last week, a couple from the West Hallam area came to discuss potentially investing in property for Buy to Let. 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. Mapperley Lane in West Hallam is a lovely semi-rural spot on the edge of the village. West Hallam itself is a sought after place to live on the Derby side of Ilkeston. The average three bedroom semi-detached house currently sells at around £180,000 and rents are roughly £600 or a little more per calendar month.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Beauvale Drive, in Cotmanhay in Ilkeston, have outperformed those Mapperley Lane, West Hallam.
This is because a three bedroom semi-detached house on Beauvale Drive can be bought for around £75,000 and the achievable rents can be around £550 per calendar month
The yield which could be achieved from property on Beauvale Drive is around 8.8% per year. When we compare this to the possible 4% on Mapperley Lane, it is 120% higher on Beauvale Drive.
However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bedroom semi-detached house on Beauvale Drive in 1997 was £23,000, which has since risen by a fantastic 220% in the last 18 years. A three bedroom semi-detached house on Mapperley Lane in 1997 was £48,000 meaning the value has increased by an impressive 275% in the same 18 years.
Interestingly we manage properties in both areas - and both tend to be very popular!
If you would like more information on investing in Winchester’s property market, please call me or visit our offices.
Thursday, 25 June 2015
Which flat should I buy in Belper? One of our landlords asked if they should buy a 1 or 2 bed flat to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a great yield?
Answering this question will help you figure out which properties you should buy...The average asking price of a 2 bed flat in Belper is £126,000 today compared to £75,000 for a 1 bedroom one (excluding the retirement flats). This is quite a large difference. The 2 bed flat achieves an average rental price of £585 per month compared to £412 per month for a one bed.
That’s a yield of 5.6% for the 2 bed against 6.6% for the 1 bed. So surely, the 1 bed is the better bet? Well it does offer a better rate of return in terms of rental income, but the 2 bed flat is slightly easier to rent out, which means less void periods and will be a little easier to sell in the future. So as they say “you pays your money and take your choice”…but the good news is that Belper is always popular!
If you would like more information pop in to see us at our offices.
Thursday, 18 June 2015
I was talking to one of my landlords the other day, when he explained there were no property bargains for him to buy in Heanor. We don’t sell property and don’t charge for our advice, but we can give impartial advice without any conflict of interest to our landlords. Here is what I discovered recently about finding bargains that I had discovered over the last few months.
A 3 bed end of terrace on Milward Road sold in 2006 for £100,000. In February of this year, she sold again for £73,000, a drop in value of 27%! That’s equivalent to growth of 3.5% per annum!. A 3 bed terraced in Mansfield Road sold for £123,950 in November 2006, but then sold again in January of this year for £95,000 – a 23.5% drop!
Finally, one of those terraced houses on Weston Street, just off Breach Road in the Marlpool area of the town, sold for £77,000 in 2005. Considering property values are much of those being achieved in 2005, someone picked up a bit of a bargain in March, when it sold again for £69,000.
There are many ways to find bargains – whether it be on price or potential – the ones outlined here are just great value in price terms today!
Whether you are a landlord of ours or not, drop by our offices or give me a call if you would like any advice...
Thursday, 11 June 2015
Now Duffield is in the Amber Valley district of Derbyshire, mid-way between Derby and Belper. It is centred on the western bank of the River Derwent at the mouth of the River Ecclesbourne. It is within the Derwent Valley Mills World Heritage Area and its elevated northern parts, remarkably, are the southern foothills of the Pennines. There is a popluation of some 5,000 plus people, with the arrival of Rolls-Royce in Derby, in the 1910s bringing further expansion to the area, helping to swell the population and in 1957 The Ecclesbourne School was founded, when George Wimpey, the building developer, built new estates, raising the population to around 5000. One was between Wirksworth Road and the River Ecclesbourne. The other was to the south of Wirksworth Road, extending New Zealand Lane and the previously privately maintained Broadway. The attraction of the village for housebuyers centres on this successful secondary school.
When we looked at the property figures though, what we found out about the village was quite interesting. The average value of a property in Duffield is £350,800, which is just £100,000 above the average of its neighbouring village of Little Eaton. The most expensive street in Duffield is Rigga Lane where an average property is worth in excess of £850,000, ironically on the edge of Duffied – on the way to Little Eaton. Only 3 properties out of the 11 properties have been sold since the summer of 1995.
The most expensive property was Outwoods House, The Outwoods, Duffield, which sold for £1,800,000 in 2014. The average rent in the village over the last 3 years has been £650 per month. Only 61 people have sold their property in Duffield, in the last 12 months, according to the Land Registry.
If you would like to come and discuss property in the area, you are welcome to visit our office in or call me today!
Thursday, 4 June 2015
I was talking to someone who lives in a detached house on Highgate Drive, on the Shipley View in Ilkeston. He wants to purchase his first Buy to Let property and has noticed our local property articles, and was aware that we are happy to chat to landlords and so was interested in getting to know the industry a little bit more.
As he has lived in Highgate Drive for some time and he felt happy investing there as he knew it well, we started to discuss the property market in this area.
Firstly, we found that 20 semi-detached houses have sold in the Highgate Drive since the year 2000.Property values in Ilkeston have risen on average by around 132% over the last 15 years but most semi-detached properties on the Highgate Drive have beaten that rise.
When we look back to 2000, a two bedroomed semi-detached property in Highgate Drive was bought for £50,000 and sold in 2014 for an impressive £125,000 – which equates to a growth of 150%! Another semi-detached house on the same street sold for £40,000 and was purchased for around £100,000 in 2012.With excellent capital growth you would expect yields to be comparatively lower, but most two bedroomed properties on the development can be picked up from £110,000 to £120,000 and could have achievable rents of £475 to £550 per month. This means annual yields can be around an attractive 6%!
This is backed up further when talking to one of our landladies who used to live on Mason Road in the same estate - she has bought several on that estate and has always had good returns, as each property is easy to rent and has only short empty periods between lets.
If you would like to talk to us about your potential investment, please come into our office, or let your fingers do the walking and pick up the telephone.
Thursday, 28 May 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Eastwood and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Eastwood....and the surrounding areas, including Kimberley, Nuthall, Underwood and Selston.
There are 146 streets in Eastwood and 959 streets in the total NG16 postcode area with just over an eighth of all those houses (3,782 to be precise) having changed hands since 2010. In those 5 years average house prices in the Eastwood area have risen by some 8%, and by nearly 2% over the last 12 months, and currently stand at around £148,000.
Most investors tend to buy semis, terraced houses or flats – so looking at the average values for these we see they stand at around £120,000; £90,000 and £105,000 respectively, still below the stamp duty threshold – so plenty of scope for good value investment in the area.
Compared to the national average - Eastwood has 76% more detached houses, 22% more semi detached houses, 25% less terraced houses and 93% less flats. This is a good indicator that Eastwood and the surrounding NG16 postcode area is a good place to buy property in.
If you would like more useful facts and figures send me an email or pop in to see us at our offices.
Friday, 22 May 2015
See it here -
With two reception rooms and an upstairs bathroom with a nice rear garden that doesn't look too onerous to maintain this could be a fantastic home for a small family or couple.
Go and have a look and see what you think and then feel free to let me know.
Thursday, 21 May 2015
A local landlord became interested in the Belper’s Buy to Let market, in particular the growth in capital values some of which he had witnessed first hand, after reading our articles about various areas of Belper, so decided to call us and ask our advice.
Having had a look at some recent examples of high growth properties I found that a small two bedroom end-of-terrace property on Belper Road, Bargate, was bought for £80,000 in 2011. The same property sold for £140,000 in December last year, which is a rise of 75%! However, prices in the town during this same time period rose only by around 11%, so it should have sold for £90,000 if it kept up with the local average house price changes, so it looks like it needed work when originally bought in 2011 – and that work has paid off handsomely.
A two bedroom detached bungalow on Ryknield Road in Kilburn sold for £190,000 in 2013, and was sold again this year for £239,000. This is a rather impressive rise of 26%, especially considering, average prices in this time have risen by a much less remarkable 9% in the area.
One that also caught the eye was another two bedroom link-detached bungalow on Old Road in Heage sold for £125,000 in 2013, and was sold again this year for £168,000. This is an even more impressive rise of 35%!
Having a look at this one in a little more detail we can see that a program of refurbishment has taken place – just look at these before and after photographs:
And after the refurbishment:
Interestingly one thing the then owners did was to turn the property from a 3 bed to a 2 bed – and make way for a kitchen diner – rather than just a small kitchen – which is a much more modern, and appealing, way of living. Definitely a case of “less is more” here!
With rents for these types of bungalows in these areas achieving between £500 and £650 per month, these properties would now yield around 4-5%. I think in terms of a rental investment, there are better properties than bungalows, such as smaller two or three bedroom semis, but for owner occupation there are some bargains.
Our interest and passion lies firmly within the residential property market, so please feel free to talk to us at any point about our diverse area.