Roper Avenue (Heanor) property market outperforms Smalley Village by 32%

 

I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money knowing the return they would get investing in the Bank. They have always lived Heanor and wanted to buy something in the town, or close by, as they know the area well. They were looking for advice as to what kind of property they should buy, but they particularly wanted it to be South of Heanor’s town centre.

Their budget was in the £200,000 to £220,000 region, so I initially looked at property in Smalley Village. The average value of a property in Smalley Village is £217,307.  An average property in Smalley Village rents for £841 per month, giving an average yield of 4.63%. They thought that yield was rather low so I then considered the Roper Avenue area of Heanor.  Semi detached houses are worth on average £102,200 here and rent for  around £523 per month, giving a much better yield of 6.14%, which is proportionally just over a third (or 36.2% to be precise) more than Smalley Village.

However, to judge a rental investment, you must consider the capital growth as well as the yield. Since 2002, the average Roper Avenue semi has risen by 79%, whilst properties in Smalley Village have risen by 112.1%. Ultimately, we found both areas to be a good investment depending on your own situation, but as you can see, Roper Avenue does offer better yields, but at the expense of better capital growth than Smalley Village offers.  

If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices Denby House Business Centre on Taylor Lane in Loscoe  for a chat or email me direct on jeremy.bullock@sprucetree.co.uk

 

What has the Help to Buy scheme done to the Belper property market?

 

The Conservative’s and Liberal Democrats launched Help to Buy last year to give a boost to the housing market. The Help to Buy scheme involves the Government guaranteeing up to 15 per cent of a mortgage, acting as an indemnity for the banks and building societies who sign up (so far only three banks have done so). This means lenders can provide mortgages more confidently to borrowers with a 5 per cent deposit. It will apply to all types of properties, first-time buyers, home movers and re-mortgagers.

Quite interestingly, first timer buyers have had access to 95% mortgages since 2010 so I am not sure what it will do to the market, except highlight that property can be bought with a 5% deposit. Scheme or no scheme, Belper continues to have a buoyant property market. Prices are rising, but not at the double digit level that was experienced in the early to mid 2000’s. If the scheme enables those who want to buy, to buy, then that can only be good for everyone in the town.

Over the last 2 or 3 years, it has mostly been landlords that have been buying property in Belper to let out. Carrying out a quick search on one of the price comparison websites, I was able to find in seconds that landlords can get fixed rate buy to let mortgages from as low as 2.99% until the end of 2016. With rental yields in Belper of around 4% to 7% per year and the values increasing by 3.81% in Belper, and the overall yearly return is the region of 9% per year.  Of course these are averages and some landlords will get lower (or higher) figures.

However, buying a buy to let property is full of pitfalls. If you have a good tenant, in a good property and a good relationship between tenant and agent, then not much can go wrong, as long as the relationship between the landlord and agent is exceptional. I pride myself on exceptional relationships with my landlords and their continued business speaks for itself.

If you are considering becoming a new buy to let landlord, feel free to pop your head through the door of our agency in the Denby House Business Centre (just off Taylor Lane in Heanor) or email me on lettings@sprucetree.co.uk for some advice and opinion on what (or not) to buy. It is true the property market is showing signs of good improvement, but, if you know where to look, and more importantly, what to look for, there are still bargains in Amber Valley and Erewash to be had.

 

What has the Help to Buy scheme done to the Eastwood property market?

 

The Conservative’s and Liberal Democrats launched Help to Buy last year to give a boost to the housing market. The Help to Buy scheme involves the Government guaranteeing up to 15 per cent of a mortgage, acting as an indemnity for the banks and building societies who sign up (so far only three banks have done so). This means lenders can provide mortgages more confidently to borrowers with a 5 per cent deposit. It will apply to all types of properties, first-time buyers, home movers and re-mortgagers.

Quite interestingly, first timer buyers have had access to 95% mortgages since 2010 so I am not sure what it will do to the market, except highlight that property can be bought with a 5% deposit. Scheme or no scheme, Eastwood continues to have a buoyant property market. Prices are rising, but not at the double digit level that was experienced in the early to mid 2000’s. If the scheme enables those who want to buy, to buy, then that can only be good for everyone in the town.

Over the last 2 or 3 years, it has mostly been landlords that have been buying property in Eastwood to let out. Carrying out a quick search on one of the price comparison websites, I was able to find in seconds that landlords can get fixed rate buy to let mortgages from as low as 2.99% until the end of 2016. With rental yields in Eastwood of around 4% to 7% per year and the values increasing by 5.94% in Eastwood, and the overall yearly return is the region of 10% per year.  Of course these are averages and some landlords will get lower (or higher) figures.

However, buying a buy to let property is full of pitfalls. If you have a good tenant, in a good property and a good relationship between tenant and agent, then not much can go wrong, as long as the relationship between the landlord and agent is exceptional. I pride myself on exceptional relationships with my landlords and their continued business speaks for itself.

If you are considering becoming a new buy to let landlord, feel free to pop your head through the door of our agency in the Denby House Business Centre (just off Taylor Lane in Heanor) or email me on lettings@sprucetree.co.uk for some advice and opinion on what (or not) to buy. It is true the property market is showing signs of good improvement, but, if you know where to look, and more importantly, what to look for, there are still bargains in Amber Valley and Erewash to be had.

Should you be buying property in Belper?

 

A number of landlords, first time buyers and investors have approached me recently, asking about the Belper property market. With all these headlines of massive increases in property values in the UK, should we be worried we are about to have a price crash? We are at the early stages but the economy is now actually looking a lot healthier and there are signs we are seeing an actual recovery after several false starts.

I am of the opinion that over the last few years, whilst mortgages have been a little more difficult to obtain than the last decade of the 2000’s, this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis, and the banks are more willing to lend, this is why sales, prices and first-time buyer numbers have improved so rapidly. It has been like opening a shaken can of fizzy pop. You get the initial fizz of activity, and then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom.

 

Property values in Belper have risen, on average by only 3.81% in the last 12 months. When I look at the East Midlands as a whole, prices have risen by 7.9% and nationally by around 8.7%. Compared to the boom years of 2001 to 2004, when property values increased by 20% in 2001, 33.9% in 2002 and 8.4% in 2003 in Belper, I cannot see why some are concerned about an unsustainable price boom. I believe house prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone. We are seeing continued exceptional property price growth in London combining with modest gains across other regions and creating a picture of a broadening market recovery, and I expect prices to continue to rise in the short term.

Speaking to others in Belper, the issue isn’t house price inflation, but a lack of realistically priced properties coming onto the market for sale, a lack of supply. So should you be buying a property in Belper?  Now is a good time to buy, provided you accept prices may fall again in a few years. It depends on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it. Belper first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be that buyers ensure they can take the hit of future interest rate rises and therefore, I ask the first time buyers of Belper to make sure you'd be happy in your new home, because you could be stuck there in five years' time.

Landlords tend to buy for the long term, so these short term movements don’t tend to affect them as much. The lack of supply in Belper of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Belper aren’t prepared to pay over the odds for a property to secure it. Maybe, just maybe, the memory of the 2008 price crash has given a dose of realism to the optimistic Belper property market?

Are there any property bargains in Eastwood?

Newspapers report property prices in England have soared to a record high – sparking predictions that the country is facing another dangerous property bubble. Values in the East Midlands are still 13.5 per cent lower than their previous peak in the Autumn of 2007. Even with that news, I have been speaking to a couple of landlords over the last few weeks who had concerns in some quarters that the state-backed schemes to boost the supply of mortgages such as Funding for Lending and Help to Buy are inflating a new housing bubble. Those landlords are asking if this means the end of property bargains in Eastwood (and the surrounding towns such as Ilkeston, Belper and Heanor)?

Well, if you do your homework, there are still plenty of good buys in Eastwood. Don’t expect them to come on the more popular streets in the town. The first rule of buy to let investment is that it is isn’t you that is living in the property, it’s the tenant, and there is always demand for every street in Eastwood.

Back in November 2012 a three bed link detached house came up for sale in Acorn Avenue, in Giltbrook with an asking price of £104,950.  I kept the brochure and it had an average white modern bathroom suite, modern kitchen but with tired decor and even more fatigued carpets. The property also offered gas central heating and double glazed windows.  It sold in April 2013 for a very reasonable £100,000 just over one year later, and the new owners replaced the carpets, gave the place a lick of paint, spent a few thousand pounds on the kitchen and sold it again for £130,000 in June 2014.  An uplift of 30% (not bad when you consider that average property values in the same time frame in the Eastwood area only rose by approximately 7%!).

By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion freely to anyone who asks, be they an existing landlord of ours or of another agents. I will also give it to anyone thinking of becoming a buy to let landlord for the first time.

I do not charge for this service, because if I offer you an honest and straight forward opinion, you may consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door in Heanor or email me on lettings@sprucetree.co.uk or telephone on 08456 86 0499 to chat about the ups and downs of the property market in Eastwood.

What has the Help to Buy scheme done to the Heanor property market?

 

The Conservative’s and Liberal Democrats launched Help to Buy last year to give a boost to the housing market. The Help to Buy scheme involves the Government guaranteeing up to 15 per cent of a mortgage, acting as an indemnity for the banks and building societies who sign up (so far only three banks have done so). This means lenders can provide mortgages more confidently to borrowers with a 5 per cent deposit. It will apply to all types of properties, first-time buyers, home movers and re-mortgagers.

Quite interestingly, first timer buyers have had access to 95% mortgages since 2010 so I am not sure what it will do to the market, except highlight that property can be bought with a 5% deposit. Scheme or no scheme, Heanor continues to have a buoyant property market. Prices are rising, but not at the double digit level that was experienced in the early to mid 2000’s. If the scheme enables those who want to buy, to buy, then that can only be good for everyone in the town.

Over the last 2 or 3 years, it has mostly been landlords that have been buying property in Heanor to let out. Carrying out a quick search on one of the price comparison websites, I was able to find in seconds that landlords can get fixed rate buy to let mortgages from as low as 2.99% until the end of 2016. With rental yields in Heanor of around 4% to 7% per year and the values increasing by 7.39% in Heanor, and the overall yearly return is the region of 12% per year.  Of course these are averages and some landlords will get lower (or higher) figures.

However, buying a buy to let property is full of pitfalls. If you have a good tenant, in a good property and a good relationship between tenant and agent, then not much can go wrong, as long as the relationship between the landlord and agent is exceptional. I pride myself on exceptional relationships with my landlords and their continued business speaks for itself.

If you are considering becoming a new buy to let landlord, feel free to pop your head through the door of our agency in the Denby House Business Centre (just off Taylor Lane in Heanor) or email me on lettings@sprucetree.co.uk for some advice and opinion on what (or not) to buy. It is true the property market is showing signs of good improvement, but, if you know where to look, and more importantly, what to look for, there are still bargains in Amber Valley and Erewash to be had.

Should you be buying? Eastwood Property Market

 

A number of landlords, first time buyers and investors have approached me recently, asking about the Eastwood property market. With all these headlines of massive increases in property values in the UK, should we be worried we are about to have a price crash? We are at the early stages but the economy is now actually looking a lot healthier and there are signs we are seeing an actual recovery after several false starts.

I am of the opinion that over the last few years, whilst mortgages have been a little more difficult to obtain than the last decade of the 2000’s, this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis, and the banks are more willing to lend, this is why sales, prices and first-time buyer numbers have improved so rapidly. It has been like opening a shaken can of fizzy pop. You get the initial fizz of activity, and then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom.

Property values in Eastwood have risen, on average by only 5.94% in the last 12 months. When I look at the East Midlands as a whole, prices have risen by 7.9% and nationally by around 8.7%. Compared to the boom years of 2001 to 2004, when property values increased by 20% in 2001, 33.9% in 2002 and 8.4% in 2003 in Eastwood, I cannot see why some are concerned about an unsustainable price boom. I believe house prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone. We are seeing continued exceptional property price growth in London combining with modest gains across other regions and creating a picture of a broadening market recovery, and I expect prices to continue to rise in the short term.

Speaking to others in Eastwood, the issue isn’t house price inflation, but a lack of realistically priced properties coming onto the market for sale, a lack of supply. So should you be buying a property in Eastwood?  Now is a good time to buy, provided you accept prices may fall again in a few years. It depends on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it. Eastwood first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be that buyers ensure they can take the hit of future interest rate rises and therefore, I ask the first time buyers of Eastwood to make sure you'd be happy in your new home, because you could be stuck there in five years' time.

Landlords tend to buy for the long term, so these short term movements don’t tend to affect them as much. The lack of supply in Eastwood of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Eastwood aren’t prepared to pay over the odds for a property to secure it. Maybe, just maybe, the memory of the 2008 price crash has given a dose of realism to the optimistic Eastwood property market?

Ilkeston property market has outperformed Bakewell’s by over 166%

 

Along with Ilkeston we have many towns and areas that make up our fine County, from the up market posh areas of the Hope Valley, Bakewell and Ashbourne all the way to our no-nonsense areas of Amber Valley and Erewash.  In fact I have a few landlords from Bakewell, one in particular who has a decent portfolio of buy to let property in Bakewell, the Amber Valley and Erewash. Let’s be honest Bakewell is a sophisticated market town which enjoys a well-earned reputation for stylish and convenient living close to abundant countryside and commons. The thriving High Street, offers a comprehensive range of upmarket shopping facilities and the schools in are highly sought after having excellent Ofsted results. All these factors make the average value of a property in Bakewell around £357,500.

Ilkeston has an excellent choice of shops, banks and restaurants, but not in the same league as Bakewell’s. Ilkeston will soon offer a brand new railway station (once the Great Crested Newts are sorted) together with existing excellent road links and there is a good choice of schooling within the area.  All these factors make the average value of a property in Ilkeston around £144,500.

In the last 12 months, the average value of a property in Bakewell and Ilkeston has risen in both places by roughly the same amount (Bakewell £13,629 and Ilkeston £13,795). However, that doesn’t tell the whole story, because average property values are much lower in Ilkeston. As a percentage, values in Bakewell have increased by a modest 3.96%, but in Ilkeston they have increased at more than double that rate, in fact 166% proportionally more at 10.55%. It shows that Ilkeston is a town that people want to invest in.

By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion at no charge to anyone who asks, be they an existing landlord of ours or indeed another agent. I will also give it to anyone considering becoming a buy to let landlord for the first time.

I do not charge for this service, because if I offer you an honest and straight forward opinion, you may consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door in Heanor or email me on lettings@sprucetree.co.uk or telephone on 08456 86 0499 to chat about the ups and downs of the property market in Ilkeston.