Why I think 2015 will be an interesting year for property investors...

As we enter the second month of 2015, you might agree that it’s already gearing up to be an exciting year. Some of the reasons why I think 2015 will be an interesting year include:

• We’ve had a revamp of the stamp duty system
• A close election just around the corner
• Agents Mutual have just launched their online platform (OnTheMarket.com) to combat Zoopla’s and Rightmove’s duopoly
• The European Central Bank  is moving forward with quantitative easing
• Lenders are becoming more creative with their products such as mortgages where you can fix your rate for 10 years

In my local investment area (Leigh on sea), property prices are certainly continuously inching higher which is causing the more astute investors to become more creative with how the realise value in their property deals.

I’d like to hear your views about what’s happening in your investment area and what you think will happen to the property market this year?

Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01702 477754  rob@castleestsateagentsltd.co.uk or call in and see me at 91 Broadway west in Leigh on sea

Landlords begin 2015 on an historic high

Just three in 10 landlords had experienced a void period in Q4 and a similar figure (32 per cent) had faced tenant arrears in the past year, the survey found, while 37 per cent of landlords said that demand had increased in Q4 from tenants - compared to just 7 per cent saying it had declined.

Tenant demand is reported as being particularly strong in Outer London, the East of England, and the South East, where more than two in five perceive it to be rising. Central London saw the largest positive increase in landlords reporting increased demand in the last quarter, with the number seeing an increase in tenant demand up nine percentage points on Q3. At the other end of the scale, in Wales the net increase of landlords reporting increased demand was down 11 percentage points to 29 per cent.

Around half (48 per cent) of landlords report seeing rents increase in the areas where they let over the last 12 months, with the average rental yield rising to 6.3 per cent in Q4. The North West saw the highest rental yield in Q4 at 7.1 per cent, while London saw the lowest at 5.4 per cent (Central) and 5.9 per cent (Outer).

The average buy to let portfolio is worth £1.1million, and generates a gross rental income of £50k.

Following an 18-month period of improvement, landlord’s confidence in the UK’s financial market fell significantly in Q4, with just 24 per cent rating its prospects for the next 3 months as good / very good compared to 37 per cent who were upbeat in Q3.

As such, landlords are becoming more acquisitive and the research found almost one in 5 landlords purchased a property in Q4, with three in 10 intending to do so in 2015.

Phil Rickards, Head of BM Solutions, comments: "Landlords continue to have faith in their portfolios and in tenant demand, with rental arrears and voids at historic lows. This is filtering through to their expansion plans, and we’re seeing a high proportion expecting to grow their portfolios in 2015.

"With inflation low and the economy growing, interest rate rises are not expected any time soon, but even when they do landlords claim to be well insulated, with the typical landlord saying it would only start to cause them serious problems if they rose to 7.3 per cent."

Its cold today! Westcliff on sea - 7.8 % yield

Good morning readers. Bit of a cold day out there on this Tuesday morning. Having said that, look what the winds just blown in ...it’s a bargain in Westcliff on sea.

It’s just come on the market this morning and yet again, it’s ticking all the right boxes with regard to the rental market. It’s the right place, right price and also good condition. Just waiting for a tenant to move in!

As ever, these properties are in great demand with two similar properties being rented by us in the past week in Westcliff on sea. With a conservative estimate on the rental figure, I would reckon that this property should rent out at a minimum of £475 per month, which at the asking price of £68,000 will give you a yield of 7.8%.

Check this one out at the following link and give the agent a call Hamlet homes on 01702 568635

http://www.zoopla.co.uk/for-sale/details/34754205?

Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01702 4777754 Robert@castleestateagentsltd.co.uk or call in and see me at 91 Broadway west, Leigh on sea ss9 2b

Ok people out of my normal area, but a brilliant Deal....

Get calling them today

http://www.zoopla.co.uk/for-sale/details/35876926?

Now, I might be taking a bit of a risk with this property because there are no internal photos, it could be just because the agent hasn't been able to get in there, or it could be because it is a dump! I'm hoping it's not the latter.

These flats are very popular for rentals as the location is good. We would expect this to rent in the region of £675 pcm.

It has just come on the market for £79,995, which is priced realistically in my opinion, of course, it's always nice if you get a little bit off the asking price, although this is getting trickier now.

If the figures all work out, this would gross you an annual return of 9.7%, which for a property Close to the town centre, is pretty good by anyone money

If you would like any information on how to go about searching for a buy to let property, pop in and see me in our office on Broadway west

Flemming Crescent, Leigh-On-Sea SS9 - £225K - Rental yield 4.92%

Today, we are back to Leigh in sea where I have just noticed a great property that was put on the market just after the New Year. Not too sure why I missed this one, must have been due to the frivolities during the holiday period....

Anyway, it's a two bed apartment with a share of the freehold and it's chain free! The asking price for Flemming crescent in Leigh on sea, is just short of £225,000 and from reading the description, I reckon that there is a deal to be done.

So with an asking price of circa £225,000 and I reckon the rental should be in the region of £1100 per month makes a great combination, delivering a yield of 4.92%. From the photos, it looks 'good to go'.

Check it out at http://www.zoopla.co.uk/for-sale/details/34004682?

Should you wish to discuss any other specific properties or just a general chat

 regarding the current market, please feel free to contact me on 01702 477754 

or call in and see me at 91 Broadway west in Leigh on sea.

An Expert ‘Buy-To-Let’ Checklist when looking for Property in Leigh.

Buying to Let - popularly hailed as an alternative to badly performing pension funds - was slowed down by a recession that squeezed mortgage deals and discouraged housing investment. But a reviving market is now generating more attractive mortgages, stimulating property prices and generally raising rent levels again.
We have found that advice for new Buy-To-Let investors can still be contradictory and confusing, like most things if you’re Buying-To-Let, you need to do it right and when a considerable amount of your own money is involved it becomes absolutely critical.

We thought, to try and make the process of buying to let simpler and more successful for you, we would prepare a definitive checklist. So here we go...

•  Research your market – the area, the people you want to rent to, the available property, the benefits and the risks – and keep up with letting industry news.
• Choose your preferred tenant type. Students? Young professionals? Families?
• Find the right property that will appeal to them – houses, flats, older properties, newer builds? Students may not need anything particularly stylish but a young professional might.
• Then pick the right area where they want to live – parents may want to be close to schools and shops; wage earners need to commute to work; students have to be near to their college or university. Look outside your own area if necessary.
• If local crime statistics are available, take a look and bear them in mind.
• Study the condition of any property you are interested in – from roof, guttering and windows on the outside to condensation, leaks and electrical wiring on the inside. Be conscious of fire risks. Check whether extensions or conversions have met planning permission or building regulations.
• Don’t accept the first mortgage offer you get. Shop around. Gather information. Compare.
• Get the maths right – your investment might give a better return in some other way. How much is the right property going to cost? Is the rent you expect to get enough to cover the mortgage and give a profitable return? Does the potential capital growth add up to a good investment?
• Talk to an independent lettings agent before you buy. Most mistakes involve either wrong location or wrong price paid for a property.
• Don't be greedy – Buying-To-Let should be approached as a long-term investment, not a quick fix.
• Be prepared for costs that can upset your calculations – ongoing maintenance, small and major repairs, advertising, future rate rises, mortgage costs, agents fees, tax, falling house values, periods when you can’t find tenants and the property is empty.
• Get the right insurance cover – and that can include insuring yourself against tenants who fail to pay rent.
• If you’re going to manage the let yourself, be prepared to sacrifice your evenings and weekends! If this is likely to be more of a drain than you are prepared for, seek out a professional, fully accredited lettings agent who, for a fee, will look after your property, your interests and your tenants on your behalf.

This checklist offers a selection of do’s and don’ts, but, it is only for guidance purposes, we prefer to sit down, face-to-face, with a new potential investor and offer more solid professional advice, since everyone’s circumstances and expectations are very different. Why not come in and see us in our office in Broadway west

Leigh on sea property values increase by £577.38 per week?

SO WHAT IS THE FUTURE FOR INVESTING IN LEIGH ON SEA ?

Last week, a Landlord visited our office to discuss the rising property prices in Leigh on sea. He owns a diverse portfolio of rental properties in and around the area, so it was interesting to compare the increase in property values.

Upon doing some research, I discovered that, over the last 12 months, the average property value in leigh on sea has risen by £30,500, from £266,801 to £296,850. This is a remarkable increase of 11.26%, which equates to an average of £715.38 per week. When considering detached houses, the average increase is even greater at £44,400 or £1,010.69 per week. I then looked at the surrounding areas to find that, in Hadleigh and Westcliff on sea, the average increase is lower, at around £561.46.31 and £425.23 per week respectively. Nonetheless, this is still a very healthy increase. Compared to the national average rise of £353.90, this would suggest that the property market is performing very well in Leigh on sea and the surrounding areas.

So, when considering this Landlord's buy to let portfolio, not only have the property values increased but the rental values of his properties have risen healthily during the last 12 months also. There has been a consistent increase in demand for rental properties, which suggests that now could be a good time to invest in the property market in and around Leigh on sea.

If you are considering investing in buy to let properties in the area and would like some advice, please feel free to visit our office.