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.
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