Friday, 27 June 2014

Attractive 3 Bed 7% Yield in Heanor

I found an attractive 3 bedroom property in Heanor recently which I think is worth a look.  Priced at £94,950 we think it is likely to sell quite fast.  A yield could be achieved of 7% with an asking rent of £560.  This property offers loads of space for a family and even offers a garage in a separate block.  Potentially a nice earner, so book that viewing and then give me a call.

Thursday, 26 June 2014

Ilkeston sees 10.07% return on investing in the rental market



 

 
Following my recent articles I was talking to a landlord from Nuthall the other day about the Ilkeston and Eastwood property markets. With all the news about house prices rising, he wanted to know what had happened to average property prices. Well there is no such thing as an ‘average property’, but according to my calculations, the ‘average value of a property’ in Ilkeston is now £139,000, which is a rise of £4,200, or 3.1%, from 3 months ago when it was £133,200.

Now by my calculations, the average rent being asked in Ilkeston is, as quoted last week, £476 per month, which means the yields/annual return are an impressive 4.1% per year.  Even more impressive, in the last 12 months, the average value of a property in Ilkeston has risen by 5.97%, meaning landlords achieved a total return of 10.07%.

When comparing this to what you get in return from banks, buy to let could be good investment for you. Don't get me wrong, there are pitfalls. My message to all the people of Eastwood is that their landlords would have seen an 8.3% return for the year, whilst Heanor and Belper landlords a more modest 5.4% and 3.1% respectively. Be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple. Take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't.

Even if it's not from ourselves, there are still a few regulated 'lettings only' agents in Amber Valley, Erewash and Broxtowe,  who are well placed to advise on whether the property you're considering will rent, and at what potential price. I am certainly more than happy for you to ring me on 01332 910499 or email me on lettings@sprucetree.co.uk
 
 
 
 

 

Wednesday, 25 June 2014

7.5%+ Yield in Ilkeston looks ready to rent

This 3 bedroom end terraced property caught our eye.  It’s ready for tenants to move into.  This is priced at £74,000 so is likely to yield around 7.7%  This property is bound to be attractive to families due to its central location, being close to both primary and secondary schools and close to local health centres.  It’s worth looking and then having a chat with us so we can help you get tenants.

Monday, 23 June 2014

What is going on with the Ilkeston rental market?








It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Ilkeston, are on average, 4% lower than they were in 2008. Average rents in Ilkeston in 2008 were £492 per month but now they stand at £476 per month. That doesn’t tell the whole story though.

Interestingly, nationally and regionally, rents dropped by around 10% to 15% a year later by 2009, depending where you lived. However, the Amber Valley and Erewash bucked that trend, with rents in Ilkeston only dropping by 6% to £463 per month.  They did drop another 2% in 2010, taking the average down to £454 per month.

However, 2011, saw a slight rise, with the average going up to £461 per month with a similar rise in 2012 to £468 per month. This is all still despite the squeeze on Ilkeston wages. Demand has remained good, mainly in part to the demand of tenants from Derby, Chesterfield and Nottingham who are happy to commute. There are still plenty of tenants willing to pay for well maintained properties in great locations.

As we go into the Summer of 2014, average rents in Ilkeston stand at £476pm. From a landlord perspective, the steady rise in rents is good news, as are steady rising property prices. Interestingly, property values in Ilkeston have seen a rise of over 1.9% in the last 12 months.
If you are thinking of buying your first (or second) buy to let property and want to pick my brain on what (and what doesn’t) make a good investment and, as I don’t sell property, I can  look at the whole of the market and give you my honest opinion.

Feel free to email me on lettings@sprucetree.co.uk or ring me on 01332 910499

If you would like to receive our monthly newsletter by email, offering information and advice on the local property market, then please register here


 

Thursday, 19 June 2014

What has happened to the Heanor rental market since 2008?





It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Heanor, are on average, 4% lower than they were in 2008. Average rents in Heanor in 2008 were £476 per month but now they stand at £458 per month. That doesn’t tell the whole story though.

 Interestingly, nationally and regionally, rents dropped by around 10% to 15% a year later by 2009, depending where you lived. However, the Amber Valley and Erewash bucked that trend, with rents in Heanor only dropping by 6% to £447 per month.  They did drop another 2% in 2010, taking the average down to £439 per month.

However, 2011, saw a slight rise, with the average going up to £446 per month with a similar rise in 2012 to £453 per month. This is all still despite the squeeze on Heanor wages. Demand has remained good, mainly in part to the demand of tenants from Derby, Chesterfield and Nottingham who are happy to commute. There are still plenty of tenants willing to pay for well maintained properties in great locations.

As we go into the Summer of 2014, average rents in Heanor stand at £458pm. From a landlord perspective, the steady rise in rents is good news, as are steady rising property prices. Interestingly, property values in Heanor have seen a rise of over 2.5% in the last 12 months.

If you are thinking of buying your first (or second) buy to let property and want to pick my brain on what (and what doesn’t) make a good investment and, as I don’t sell property, I can  look at the whole of the market and give you my honest opinion.

Feel free to email me on lettings@sprucetree.co.uk or ring me on 01332 910499

If you would like to receive our monthly newsletter by email, offering information and advice on the local property market, then please register here

 
 

Wednesday, 18 June 2014

Horsely Woodhouse - would rent quickly!




 
 
 
A two bedroom property with a garage and parking in Horsley Woodhouse is sure to rent quickly.  This is why this property caught my eye!  With a reasonable asking price of £105,950 this property is bound to go quickly!   Largely ready to let, but if you’re picky you might want to do some minor decorating.  We think this property could let for approximately £515pcm.  This would give you a gross rental yield of 5.8%...but don't forget the capital growth prospects too!

How has the Eastwood rental market changed?






It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Eastwood, are on average, 4% lower than they were in 2008. Average rents in Eastwood in 2008 were £524 per month but now they stand at £500 per month. That doesn’t tell the whole story though.

Interestingly, nationally and regionally, rents dropped by around 10% to 15% a year later by 2009, depending where you lived. However, the Amber Valley, Broxtowe and Erewash bucked that trend, with rents in Eastwood only dropping by 5% to £498 per month.  They did drop another 2% in 2010, taking the average down to £490 per month.


However, 2011, saw a slight rise, with the average going up to £495 per month with a similar rise in 2012 to £498 per month. This is all still despite the squeeze on Eastwood wages. Demand has remained good, mainly in part to the demand of tenants from Derby, Chesterfield and Nottingham who are happy to commute. There are still plenty of tenants willing to pay for well maintained properties in great locations.

As we go into the Summer of 2014, average rents in Eastwood stand at £500pm. From a landlord perspective, the steady rise in rents is good news, as are steady rising property prices. Interestingly, property values in Eastwood have seen a rise of over 5.2% in the last 12 months.

If you are thinking of buying your first (or second) buy to let property and want to pick my brain on what (and what doesn’t) make a good investment and, as I don’t sell property, I can  look at the whole of the market and give you my honest opinion. 

Feel free to email me on lettings@sprucetree.co.uk or ring me on 01332 910499

If you would like to receive our monthly newsletter by email, offering information and advice on the local property market, then please register here

 

Tuesday, 17 June 2014

Close to 8% Yield Possible in Ilkeston

This property 2 bedroom house on Digby Street, Ilkeston immediately caught my eye as a property with potential.  It’s priced at £69,950 and could rent in its present state relatively easy.  However, I’d be tempted to maybe upgrade the kitchen and pop in some new carpets to increase the yield.  As it stands I’d estimate a rent of £400pcm, but with some TLC quite possibly, £450 which would make the gross yield closer to 7.7%.  Book that viewing then call me to discuss how we can proceed!

Monday, 16 June 2014

What has happened to the Belper rental market?






It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Belper, are on average, 2.5% lower than they were in 2008. Average rents in Belper in 2008 were £603 per month but now they stand at £589 per month. That doesn’t tell the whole story though.

Interestingly, nationally and regionally, rents dropped by around 10% to 15% a year later by 2009, depending where you lived. However, the Amber Valley, Broxtowe and Erewash bucked that trend, with rents in Belper only dropping by 5% to £575 per month.  They did drop another 2% in 2010, taking the average down to £561 per month.

However, 2011, saw a slight rise, with the average going up to £571 per month and maintaining in 2012 at £570 per month. This is all still despite the squeeze on Belper wages. Demand has remained good, mainly in part to the demand of tenants from Derby, Chesterfield and Nottingham who are happy to commute. There are still plenty of tenants willing to pay for well maintained properties in great locations.

As we go into the Summer of 2014, average rents in Belper stand at £589pm. From a landlord perspective, the steady rise in rents is good news, as are steady rising property prices. Interestingly, property values in Belper have seen a rise of over 0.9% in the last 12 months.

If you are thinking of buying your first (or second) buy to let property and want to pick my brain on what (and what doesn’t) make a good investment and, as I don’t sell property, I can  look at the whole of the market and give you my honest opinion.

 Feel free to email me on lettings@sprucetree.co.uk or ring me on 01332 910499

If you would like to receive our monthly newsletter by email, offering information and advice on the local property market, then please register here


Friday, 13 June 2014

7.5% Yield in Eastwood

A well kept 3 bedroom property in Eastwood caught my eye. On with Whitegates this property would suit a family or couple alike.  With modern decor, a spacious kitchen, including a utility area, what’s not to like?  We’d expect to achieve a rent of £525 pcm which would put a yield in your portfolio of nearly 7.5%  This property is worth a look.  Give me a call when you have and I’ll explain how we can get you great tenants.


Thursday, 12 June 2014

Do detached properties in the Ashford Rise area of Belper make good investments for Buy to Let?


 
I was talking to someone who lives in one of those modern 4 bed detached houses on the Ashford Rise estate, to the north of Belper on the way to Heage. The whole area was primarily developed in the 1990’s and 2000’s and offers mostly larger executive detached houses and also a few modern semis and town houses. Interestingly though, of the 3,154 properties in the area over 1,868 of them are detached, or approx 59%, compared to 36% average in Amber Valley area. Something that wouldn’t happen today with the price of land.

Anyway, he wanted to buy a property in the immediate area to let out, as he has lived there for over 8 years and felt comfortable investing around there as he knew it well. It would be his first Buy to Let property and had noticed our previous articles, so was interested in learning more about the industry so we started to discuss the local property market.

There were only 245 rented houses in his area of 3,154 properties, making the one of the lowest percentage areas for private renting I have ever seen (7.8% compared to the Amber Valley average of 10.7%, which is still below the national average of 15.3%).

Whilst he lived in one himself, the investment potential of those larger 4 beds wasn’t good, as the highest yield they could expect was only around 3.4% per year. However, the larger 4 beds on the Ashford Rise estate have certainly increased in value at a faster rate than others in Belper (123.5% since 2001, compared to the Belper average of 106%).

Investing in property is a balance between decent capital growth and decent yield. 3 bed semi detached houses on the same development, can be bought for around £130,000 and they rent for around £550 per month, a reasonable yield of 5% per year, and those have increased by on average 116% since the Millennium. A good balance I think you will agree?

It all comes down to personal choice. I have done the same exercise in Ilkeston, Eastwood and Heanor and we get almost the same results. Each landlord has different priorities for their buy to let investments. As I don’t sell property, I can look at the whole of the market and if you want to pick my brains on what would make the best buy to let investment for you, feel free to contact me by emailing me on lettings@sprucetree.co.uk or ringing me on 01332 910499

If you would like to receive our monthly newsletter by email, offering information and advice on the local property market, then please register here

Smart and Modern with a 7% yield in Ilkeston!




This great 2 bedroom home in Ilkeston has just caught my eye, new on the market with an asking price of £86,000.  Smart, modern decor and well looked after, it’s bound to be a hit with tenants.  We’d look to ask for £495pcm to give a healthy yield of 6.9%.  Bound to go quickly, contact me after you’ve viewed it for great lettings advice on 01332 910499.

Monday, 9 June 2014

Derbyshire Buy to let - Rule Six


Rule #6 - Plain Sailing?
 

Some people clearly invest in property expecting there never to be any problems throughout their duration of ownership. This is a touch na├»ve, irrespective of the property you buy and the area you buy in.  

Your buy to let property is a business, and like any business, it will have problem customers at some point. 

You can mitigate your risk by instructing an agent that knows their stuff, and by insuring sensibly – the two big risks of buy to let (tenant doesn’t pay and tenant damages property) are both fully insurable. 

But even with this done you should expect hiccups at some point, so keep some money for a rainy day and if you’re the sort of person who would find some end of tenancy cleaning or a tenant losing their keys stressful, maybe something like stocks and shares would be a less personal way to invest your money!

 

Thursday, 5 June 2014

Should you buy an ex-council property to let out – in Cotmanhay Ilkeston?





I had a conversation the other day with a landlord, who lives in Trowell, who took me up on the offer of having an informal chat about the Ilkeston and Amber Valley property market’s the other week.  We got talking about property in Ilkeston and in particular where good yields can be obtained.  The nice 2 bed town houses in Cotmanhay estate can be bought for around £73,000 and they rent for around £475 per month of 7.8% per year..  very reasonable indeed.

However, like I said a few weeks ago, yields are not everything in property investment. Another consideration is how easy it is for a property to let and the times there are void periods. The ex-council houses do tend to have more of those. I did some calculation on the last nine two bed town houses on the Cotmanhay over the last 12 months, and the average time to find a tenant was 69.7 days. Even if you take off the 30 days notice period a tenant has to give, that was nearly 5 weeks without rent. The headline yields don’t include those times. If it did, the yield would be nearer 7.1%. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term and have hardly any void periods or ongoing issues, which some high yielding properties can suffer from. The choice, Mr (or Mrs)  Landlord, is yours!

As I don’t sell property, I can look at the whole of the Ilkeston, Heanor, Eastwood and Belper property market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, please ring me on 01332 910499 or email on lettings@sprucetree.co.uk

Cotmanhay: Gross Yield 7.1% House with Garage

This 2 bed property in Cotmanhay is available to buy for £80,000.  Always a popular rental area we believe this property could achieve a gross yield of 7.1% if an asking rent of £475 was achieved.  This property provides parking space and a garage together with plenty of internal space for a young family.  Why not book that viewing and then keep me in the loop so we can help you rent it out!

Monday, 2 June 2014

Derbyshire buy to let - Rule five

Rule #5 Estate Agents .. Watch them!

There are good agents, and bad agents, but they are all paid by a vendor to SELL YOU a property, NOT paid by you to help you buy. 

As such they may not be as ‘on your side’ as they seem! Don’t get pressured into buying a property until you have a good feel for the market – if you miss out on a good deal, another will appear sooner or later. 

When you’re viewing a horrible property and the agent is saying it’s “fine as a rental” they are simply demonstrating they don’t know much about lettings.

8% Yield only £70k!

I saw this great 2 bedroom terraced property in Codnor priced at just £70,000.  This could be a great rental property, it doesn’t appear to need much doing, save for a little gardening!  A potential rental price of £475pcm could be obtained which makes for a whopping 8.1% gross yield.  Still reading?  You shouldn’t be!  Book that viewing and then give me a call see how quickly we can get tenants insitu! If you want to chat about this possible deal or any others you have in mind then give us a call on 01331 910499!