Great Investment Opportunity in Leigh

I've spotted this 1 bed apartment come to the market on Cranleigh Drive, which is just off London Road, the only thing I would recommend is done to it, is replace the carpets with a nice neutral flooring, this will make it appeal to a much wider market.

Properties in this area have been renting for £695 for a 1 bed apartment, which when you do the calculations against the asking price of £135,00, could look to generate you a gross yield of 6.1%. 

This area is popular for tenants due to the location, not being too far from the city centre and they tend to offer decent sized accommodation. 

We are finding at the moment that there is not much property coming to the market, so when anything new comes on, it is going pretty quickly, it's not just me saying it, the results speak for themselves!

If I were you and I liked this property, I would get down to the selling agent today, Heres the Zoopla link for you 

http://www.zoopla.co.uk/for-sale/details/33698315?

If you would like any advice on investing in property, in Leigh, feel free to come into our office on Broadway west

Leigh, Good time to buy property?

Following last week’s article, I had an interesting chat with a chap who lives in Leigh, who popped into our office on Broadway west, whilst his better half was shopping at Tesco’s (just round the corner from our office). He is thinking of buying his first buy to let property and he wanted my opinion on the state of the market and if it was a good time to invest.

He was particularly worried that with all the newspaper headlines of a booming housing market, there wouldn’t be any demand from tenants. One of the best pieces of advice I can give to those looking to invest in property is a simple trick of the trade. You can judge the affordability of an area’s property market (and thus how much demand there could be) 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, as we talked about a few weeks ago, we found that Leigh currently has an average property value of around £298,000. The average salary of someone living in Leigh is estimated at £30,636, giving a ratio of 10.21 to 1. Most lenders will only lend up to 4.5 times income, so to buy that average house in Leigh at £298,000, a first time buyer would need to be on a salary in the early £66,000 (just over £66,222 to be precise and that is a minimum) and even then, would need to raise the 10% deposit, which when you take into account buying fees, will be in the order of £28,000 to £30,000.

The questions I seem to be asked on an almost daily basis by landlords are:-

 

·        “Should I sell my property in Leigh, or even buy another?”

 

·        “Is the time right to buy another buy to let property in Leigh and if not Leigh, where?”

 

·        “Are there any property bargains out there in Leigh?”

 

When considering this landlord’s buy to let portfolio, yields can be in the order of an average 4% to 6% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Leigh.

Tenants’ inability to raise that sort of money for the deposit is driving demand for rental property. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first (second or third...) time, please pop in and see me at our office in Broadway west in Leigh or call me for a chat 01702 477754

 

Rising house prices beneficial for landlords

Within the last year, the amount buy to let landlords have been putting down in deposits has risen by 15% to approximately £100,000.

This has been very beneficial for landlords as high cash deposits have helped landlords’ access better interest rates, according to the Mortgage Search Tracker from the Mortgage Advice Bureau.

The Mortgage Advice Bureau said that landlords are representing a more secure prospect to lenders and have been increasing their chances of securing lower interest rates when they have more equity behind them as the average loan to value rates pursued by borrowers’ drops.

The data suggests that buy-to-let borrowers are now applying for mortgages with £99,914 of equity behind them, a rise of £13,289 in the last year.

Additionally, the average property value among buy-to-let borrowers remained at approximately £230,000, similar to the £231,000 sought by the average homebuyer. However, buy-to-let customers are looking to borrow over shorter periods of time.

Brian Murphy, Head of Lending at the Mortgage Advice Bureau said: “Landlords are in an especially strong position to use their recent equity gains to negotiate a better mortgage deal. House prices have settled into a steadier pattern in recent months, but the current low rate environment offers many buy-to-let borrowers the chance to reassess their finances”.

With the general election under 60 days away, it is suggested that house price growth expectations have fallen to an 18-month low and it’s predicted that there will be a slower price appreciation in 2015, compared to last year.

History does tell us that the activity levels within the property market running up to elections of the past have cooled down, followed by an increase within the market for the rest of the year.

What will we see throughout the rest of 2015?

 If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first (second or third...) time, please pop in and see me at our office in Broadway west in Leigh or call me for a chat 01702 477754

 

Is the Leigh Property market holding its breath over the General Election?

Has apathy hit the Leigh housing market as sellers await the outcome of the general   election and stricter mortgage regulation suppresses buyer demand?   Rightmove       reported the number of homes registered for sale per estate agent fell to its lowest            level for five years in December, with available stock 10% lower than in the same            month a year earlier.

Looking at Leigh in the summer of 2014, each estate agent in Leigh  had on average 23 properties on its books (as there were a total of 439 properties up for sale in Leigh at the peak in the summer just gone). Our research shows that number plummeted to 15.7 per agent in December.  While the lack of new properties coming onto the market in the later months of 2014 in Leigh pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.

The length of time a property takes to sell has ever so slightly increased over the last few months. Two bedroom properties in Leigh are now taking 49 days to sell, three bedroom 46 days, four bedrooms 38 days, but here an interesting figure, one beds are taking on average 102 days to find a buyer.

2015 will be the year of the selective mover.  With only 318 brand new properties a year being built in Leigh since the turn of the Millennium, this woefully low and insufficient number of new buildings in the City over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.

The heat has gone out of the Leigh property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014, but it most certainly isn’t icy cold. That might mean Leigh landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy  or the election, if people don’t buy property they rent.

The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar! In fact with less properties coming on the market in Leigh, that will keep prices quite stable.

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. Email me on rob@castleestateagentsltd.co.uk

Leigh on sea: A great property yield off 5.94%

This property is being marketed via Barrett Hammond in Braintree 01376 808032 . As stated previously, these property make a great investment , within walking distance of Leigh Station C2C line, and the ever popular Leigh Broadway.

 STATION ROAD, Leigh-On-Sea, SS9

ALLOCATED PARKING

LEASE 999 years commencing 1989

MAINTENANCE & GROUND RENT £70 per month.
Each of the ten flats owns 10% on the management company.

The rent achievable is £700.P.C.M

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

 

Converted flat in Leigh - 5.47% yield

                               Tankerville Drive, Leigh-On-Sea

                                         http://www.zoopla.co.uk/for-sale/details/35659525?

 This two bed flat in Leigh is great, it should rent for £750-£800pm in the current market so if you could pick it up for £160,000 that’s a possible 5.47% gross yield.

 Large 2 bedroom apartment in good condition located in a quiet road in Leigh-On-Sea. Close to Belfair’s woods and other local amenities.

The property is on the first floor of a converted house and offers 2 large bedrooms, a living room with fireplace, modern bathroom and recently installed fitted kitchen with wall and base units and integrated oven. The property benefits from double glazing, gas central heating (n/t) and no onward chain

According to the sales details the service charge and ground rent needs to be confirmed, so this would need to be taken into account. However, investing in Leigh is a good bet for capital growth in the long term.

If you would like any advice on buying to let in Leigh or Southend just drop me a line and I'll be happy to help. rob@castlesestateagentsltd.co.uk

37% increase in the average asking price for flats in Leigh.

If you’re not keeping a close eye on the Leigh property market at the moment and you own rental property in Leigh then you could be in for a pleasant surprise when you get it valued. I bumped into a client of mine last week who has a couple of flats that we manage for him and he wanted to know if he could re-mortgage to get a bit of money out so he could buy another. He was astounded when I helped him to work out the value of his current properties and this is a real indicator of what’s gone on in the last 12 months.

According to Mouseprice.co.uk if you look at the average asking price now against the average asking price 12 months ago you may well be very surprised too.  The average asking price for flats in Leigh was £202,341 in Feb 2014 and now,12 months later, it is £277,921.  This is an incredible increase of 37%.  but Terraces property have not seen as much of a increase increase only 28% going from £260,237 to £333,465 in the space of 12 months.

		Feb 2014	Feb 2015	Change
	Detached	£454,146	£450,812	-1%
	Semi	£327,898	£359,588	+10%
	Terraced	£260,237	£333,465	+28%
	Flat	£202,341	£277,921	+37%
	All	£331,971	£357,772	+8%

also very impressive is the average asking price for a semi-detached property has increased 10% in the last year and I was quite shocked to see that the average asking price for a detached house increase so much to 35% it was ££247,238 12 months ago and now a brilliant £332,842  Had you only looked at the first 6 months of 2014 it would have been a different story as detached houses were showing a small increase of only 4% over the last year from £338,555 to £352,661.but still a great performance.            

Let’s go back to the flats and terraces. When researching the increase in asking price by number of bedrooms I found that the average asking price for a 1 bed property increased 20% in the last 12 months from £122,926 to £157,742 whereas the average asking price for a 2 bed property increased 23%. below is a chart of the latest stats for Leigh on sea as of the end of February 2015.

Summary of Properties for Sale in SS9

Total properties for sale in SS9:	297
Properties for sale in SS9 listed in the last 14 days:	49
Average* price of properties for sale in SS9:	£361,736
Median* price:	£325,000
Average time on market (ToM) of unsold property in SS9*:	100 days
Median time on market (ToM) of unsold property*:	50 days

The best yield in Leigh can often be found on the 1 bed flats however according to the above figures the better growth would be on the 2 bed units regardless of whether they are flats or houses.  So what do you go for? The yield or the potential growth?

If you’re considering an investment property in the local area then give me a call on 01702 477754. There is no one-size-fits-all option with property and everybody has a different priority or reason to invest. I’m happy to take the time to help work out what is best for you. I don’t charge for my time and I don’t try to sell you my Letting service during this process. I know from experience that the information I offer is valued by my clients and when they buy a rental property they often return to ask me to market it for them.

If you'd like to know more about me just pop in to see us at 91 Broadway west, Leigh on sea. the coffee will be waiting.