Thursday 31 July 2014

Bletchley 2 bed semi + garage + conservatory, 5.3% return easy

A decent little 2 bed semi now with a garage and a usable conservatory, not far from the centre of Bletchley, and I'm sure there is a bit of wriggle room on the price of this one. It is already in fairly good condition, neutral colours with a decent kitchen & modern bathroom, and could rent today for around £775, giving you a return of 5.3%. Taylors in Bletchley have all the details for you, but here is a taster....
 
 
 
 

Wednesday 30 July 2014

Tuesday 29 July 2014

Beautiful 3 bed on Tattenhoe, 5.1% return but what a great opportunity for future capital appreciation

This house is presented in immaculate condition and could go straight on the rental market today at £975. Whilst the return today would only be 5.1%, this has got to be a winner for a long term investor who wants their capital investment to grow, and this house in this area certainly offers that. Elevation have it for sale at £230k right now, but this won't hang around for long.....
 
 

 

Monday 28 July 2014

Oxley Park 3 bed semi offering yield of 5.1% but with excellent scope for capital growth

This is a lovely 3 bed semi with garage AND decent off road parking (unusual for this area), up for sale with Under1Roof at £235k. This might only offer 5.1 yield today with a rental value of £1000 PCM , but with this area you will get great capital appreciation over the coming years. A great school catchment and good local shops all make this a top location, this must be a safe place to put your investment, so pop and have a look....
 
 

Friday 25 July 2014

Just who exactly ARE your tenants?


A cautionary tale to all landlords...
Do you REALLY know who you are renting out your property to? How do you know that the person you meet is the person they say they are, and not an illegal sub letter? Would you knowingly want to be involved with shady tenants, or would you rather be protected from them?
What if your tenant trashes the place, rips off doors and radiators, kicks holes in the walls or runs a cannabis factory from home? Where do you stand – probably not where you want to be, that’s for sure. We have reports of these horror stories (and worse!) from even some of our seasoned landlords, who all had enough experience to cope with such matters – or so they thought. Can you imagine the stress and financial burden this would put on a novice at the start of their investing career?
 


The common denominator here is people – well, specifically tenants. Property investors often forget this is a PEOPLE business, it’s all about how you deal with them and how they interact with you, how you pick the good from the bad in the first place, and how do you know who to trust? Well if you don’t do thorough due diligence on your new tenants then the truth is you don’t. Would you honestly spend, for example, a quarter of a million pounds on a nice 3 bed semi and then effectively hand it over to strangers? Some landlords, and even agents, state that they want (and will get) a tenant living in an empty property before the week is out. Hmm, OK, let’s think about this – I don’t know you, you want to potentially be entrusted with what is in effect a LOT OF MY MONEY tied up in the value of my property, not to mention that I will effectively be offering you credit to the value of 6 months’ rent – well I certainly want to know all I can about you my friend! First I want to take up references from your current and previous addresses, I also want to contact your employer to confirm not just your salary but also that you DO HAVE a permanent position there for a period covering your initial tenancy. Got any CCJs or financial defaults? If so then I want to know, because as I don’t know you, it tells me you are a financial risk that I could do without.
 

 
Obviously, anyone’s situation can change, so I’d like to pop around in 4 weeks to make sure you have settled in OK and got to grips with everything at the property – oh did I mention, I’ll be back in 3 months as well, and every 3 months after that, just to keep an eye on my property. Sorry what’s that, you don’t think that’s fair? Well there are currently 97 other agents listed locally on Rightmove, perhaps they could accommodate you.
You see at Belvoir, our landlords get the protection from all of the above in the detailed level of service and tenant referencing we offer. What we want our landlords to understand is that we DO know our applicants even before they become our tenants, and that’s one of the things you pay your monthly fee towards. Come on, would you really gamble £250k for a saving of around £16 per month on your fee? If so, there are 97 phone calls you could be making. If not, just the 1 call to us on 01908 562582 is all you need to make.

Thursday 24 July 2014

Campbell Park 2 bed apartment offering 6.2% yield

Have a look at this tidy 2 bed apartment in Campbell Park, offered for sale through Elevation for £140k and would easily rent for £725 to £750 PCM at this time. It doesn't appear to need any work doing to it, and this would appeal to young professionals working in CMK who don't particularly want to live down at the busy end of the city above The Hub and can't afford to live in Vizion. A nice 6.2% minimum can be earned from this, so go and have a look.....




Wednesday 23 July 2014

Downs Barn 3 bed terrace, £190k investment gets this nice, easy property for the new investor

This is a decent property in Downs Barn, for sale for £190k through Haart, offering contemporary living and decent quality in a reasonably central area, this will rent out for around £850 PCM giving a yield of 5.3%, but with no modernisation or big expenditure required on your part. Might be worth a look for an easy option to start with....


 
 

Tuesday 22 July 2014

Netherfield potential high reward 7.5% yield

Following on from my post on 11 July (see older posts), here is an example of just what I was illustrating back then:

 
 
 
Here we have an absolutely typical 3 bed terrace in the inimitable style of this area, complete with off road parking, downstairs WC and a converted garage. Wilson Peacock have this up for £120k, haggle a few pounds off for a bit of redecorating and possible tidying up internally (there are no photos, so best to go and see what it is like before doing all the sums), but if it is generally OK it would go back on the rental market at £750 today - and you would get that no problem. Based on these figures, it could yield 7.5% for you.
 
So you get a decent immediate return, but you would be unlikely to see a highly appreciating asset over time, and structurally it may need more work doing to it in the future as well (flat roof, external corrugated cladding). It is not in the most desirable of areas yet will always find a market, and for someone with the  gumption to take this on, it could offer a good income.

Monday 21 July 2014

Oxley Park, stunning apartment offering a potential 6.2% return

Here we have a lovely 1 bedroom apartment in a very desirable and up-and-coming area, Oxley Park. Rhyen Jordan have this stunning apartment on the market for a tad under £140k, haggle hard for a few pounds off if you can! Offering 2 parking spaces and a totally up to date interior, this would rent to a young professional for £725, offering you a potential return of 6.2%. Pop along for yourself to see just how nice the area is, and why it is worth the money.



Friday 18 July 2014

How can you find a good property deal in MK?

The subject of a lack of Milton Keynes property bargains over the last couple of years has always been near the top of most local landlord’s thoughts. I have built up an extensive database of property sales in the area since the late 1990s, so I am able to give an objective and unbiased opinion on what does (and what doesn't) make a good property deal/investment. Knowing what is currently happening and what has happened previously to the property market in Milton Keynes enables me to spot any trends or opportunities for buy to let landlords.
 
 
 
Here is one the bargains that I spotted last year. A three bed mid town house on Downdean in Eaglestone. It came on the market in the Spring of 2013 at £148,000 and sold in the Summer for £143,000. The owner gave the 947 sq ft house a lick of paint and some TLC (no more than a few hundred pounds looking at both sets of pictures), and it sold again 6 months later at Christmas for £156,000..... a 9% increase in value in 6 months (interestingly, the MK average over those same 6 months was only 2.4%).
 
 
Whether you are a landlord of ours or not, or someone thinking of investing in the rental market for the first time, pop into our offices for advice and opinion on where the bargains are in the area or follow our ‘Milton Keynes Property Blog’ which is updated daily. You see, as I don’t sell property, I can look at the whole of the market. Please email me on stephen.tunney@belvoirlettings.com or pop into my offices on London Road in Stony Stratford for my opinion on the Milton Keynes property market.

Thursday 17 July 2014

Walnut Tree beautiful 2 bed + garage, rent at £795 PCM for a 5.6% yield

How nice is this! A very tidy, modern 2 bed semi with a garage - our waiting list of tenants could accommodate 20 or more of these right now, you will not go wrong with this house in this area - great schools nearby, a range of local shops, nice views across to Woburn Sands, and close to the M1 for commuters. Inspired Sales & lettings have all the details, so be inspired and talk to them before someone else does


Wednesday 16 July 2014

The basics on buy-to-let

Size is not always the main consideration, quality and location are more important. Investing in new-build flats, old houses or typical suburban terraces all have merit in different ways, it depends on your investment objectives, timeframes and budget. Before investing there are numerous things you need to research including – but not limited to – cash amounts, mortgages and rates, fixed costs (such as service charges in flats), potential repairs and improvements, furnishings, gross and net yields, plus likely returns on capital employed. 
Houses seem to be more popular than flats, larger bedrooms are better than singles, good nearby transport links are also useful and double-glazing is becoming a requirement for most tenants. Location of the property is also vitally important - the main drivers are access to train stations, good shops and restaurants and in the case of growing families, good schools.



The condition of property should also be considered. Tenants want dry, structurally sound properties in good condition (cracked fittings, marked walls, damaged appliances, grubby kitchens and bathrooms are all a turn off). Think carefully about the size and layout of the accommodation too. Most tenants will dislike small living spaces, odd shaped rooms and bathrooms without natural light. And remember, tenants have a strong sense of rental values so the days of landlords setting the rent to cover their mortgage are gone and they must therefore buy wisely.
A BTL property should look good from the outside (kerb appeal). If the inside is immaculate but the outside isn’t, you will struggle to get people through the door. Ideally the property should be semi-detached and have gas central heating and a shower. Double-glazing is another benefit.



Think about the age of the property. The younger the property, the less maintenance you will have. If you purchase a Victorian property it is likely you will have to rewire the property, therefore I would strongly suggest that BTL landlords have the gas and electric checks done on the property before Exchange of Contracts. If problems are found the cost of rectifying the issues could potentially come off the agreed sale price.

2 and 3 beds are the most popular (with 2 beds usually giving a better return on an investment), but it is essential that you understand the BTL market and complete all your homework before purchase. I would urge all BTL landlords to carry out a cost analysis before committing and have sufficient funds set aside for potential void periods and major repairs (a new boiler could cost around £1500, if you cannot afford to replace it then don’t buy the property).

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Milton Keynes rental market for the first time, please email me on stephen.tunney@belvoirlettings.com  or pop into our office on London Road in Stony Stratford.

Tuesday 15 July 2014

A tidy starter flat for the novice investor, above shops in Heelands & offering a 7.2% yield

This one is nothing special, but at £90k for a fairly tidy 1 bed flat, how much cheaper can you get? It really doesn't need much doing to it either, perhaps a quick update in the kitchen & bathroom and put it straight onto the market again for at least £540, giving you a 7.2% return or down to 6.5% if you spent 10k on modernisation. Haart in Milton Keynes have all the details of this, so what's stopping you?


Monday 14 July 2014

Westcroft 1 bed flat giving a 6.1% return

This is not a bad area at all, with lots of great local shopping and on the fringes of Milton Keynes and close to open countryside. Connells want £110k for this, and in it's current state you would easily get £560-£575 PCM for it, giving a decent return of at least 6.1%, and with a 999 year lease you don't need to worry about being stuck with this in years to come.


Friday 11 July 2014

Netherfield property market outperforms Woughton on the Green by 72%!

Last week, a landlord who lives in Woughton on the Green in one of those nice executive properties, popped into see me whilst his wife was shopping in the town. He wanted to discuss what was happening in the Milton Keynes property market, especially what was happening to returns and the property values in the town, as he owned various properties around Milton Keynes.
 
We got talking about the different areas, such as Fishermead, Monkston and Old Farm Park but it was Netherfield that created the most interesting result during our conversation. It was a surprise to find that the property market in Netherfield has outperformed Woughton on the Green property market. I know it sounds unlikely, but let me explain.
 
Typical Netherfeild terraced property
 
This is because an average three bed three storey town house in Netherfield is worth £109,400 and the average rent for that type of property, depending on condition, is £694 per month. This means the yield (or annual return) which could be achieved is around 7.6% per year. When we compare this to property in Woughton on the Green, those large 4 or 5 bed executive houses, they are currently selling in the £450,000 region, they rent for £1600 to £1700 per calendar month, (depending on what the property offers), this would give any investor buying such a property, a yield of only 4.4% per year, thus making the Netherfield yield of 7.6%, proportionally 72% higher than the yield of Woughton on the Green.
 
Typical Woughton on the Green detached property 
 
However, we must remember that yield is not the sole consideration when investing in Buy To Let properties. Since 2002, Netherfield property values have increased by an impressive 75.4%. However, more impressive are the value increases in Woughton on the Green, as their property values have had a much higher rate of growth than Netherfield, rising by an impressive 101.6% in those same years. I appreciate these are the two extremes of the Milton Keynes market, it just goes to show you need to do your homework, because as a landlord, it’s not all about capital growth or yield, as it is very rare to get both. You must also consider protecting your investment by selecting the right area and the right tenant.
 
If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Milton Keynes rental market for the first time, please email me on stephen.tunney@belvoirlettings.com  or pop into our office on London Road in Stony Stratford.

Wednesday 9 July 2014

Landlords, have you fully declared all your rental income?


Our sources tell us that HMRC has sent out a second batch of letters to 40,000 landlords whom it suspects have either not declared or under-declared rental incomes. Part of the Let Property Campaign, landlords who have already received letters and who have not made a voluntary disclosure could face severe penalties and the possibility of criminal prosecution.
 

Although HMRC generally goes back six years, the law allows it to go back up to 20, warns chartered accountancy firm Jeffreys Henry http://www.jeffreyshenry.com/. The firm says that any landlord with undeclared rental income, or who has been under-declaring it, should come forward to make a voluntary disclosure before they receive a letter. Anyone making an unprompted voluntary disclosure will be able to negotiate lower penalties and affordable payment plans.
 

For the thousands of landlords who have already received letters, it is too late. Any disclosure they make now will be regarded as “prompted”. Interest will also be charged from the date the tax is due until the date it is actually paid.

 
HMRC is using a wealth of information to identify landlords who have not declared their rental income. These include records from other government agencies and local authorities, and also the tenancy deposit schemes and Land Registry.

Tuesday 8 July 2014

Monkston Park 2 bed apartment, 5.6% yield

Now here is a lovely 2 bed apartment in the ever popular Monkston Park - this area is towards the top end of locations in MK right now, with a new Waitrose on it's doorstep, a fantastic secondary school very close by, and a lot of new developments planned in the neighbouring areas. On the market for £165k with Connells, it would rent to a professional couple in todays market for £775, providing a return of 5.6%.


 

Monday 7 July 2014

New build apartment in the centre of Bletchley, offering modern living and a 5.9% yield

How about this great 2 bed apartment, complete with all white goods (including washer/dryer and microwave), with en-suite to master bedroom. Put it straight onto the market for at least £795 and take a return of 5.9% on this one, without having to do anything to it yourself. London commuters can walk to Bletchley railway station in 5 minutes, so why don't you walk along to Taylors in Bletchley for more details?


Friday 4 July 2014

Belvoir scoops Lettings Franchise of the Year – for a record fourth time

Belvoir has once again scooped Gold at the prestigious Lettings Agency of the Year Awards, winning the title of Best Lettings Franchise 2014 – for a record fourth time. Belvoir also won the Bronze Award for Best Customer Service Agency (Large) in recognition of the outstanding service that franchise owners across the country provide to their clients.
 
The Lettings Agency of the Year Awards, in association with The Sunday Times & The Times, and sponsored by Zoopla, were held at the opulent Lancaster London Hotel. Dorian Gonsalves, Belvoir’s Director of Commercial and Franchising, accepted the award from inspirational businesswoman Katie Piper and paid tribute to the hard work of all franchise owners in the Belvoir network and their determination to consistently provide outstanding levels of customer service.
 
 
 
“As a network we have worked tremendously hard to become the agent of choice for landlords and tenants,” said Dorian. “To receive the Gold Award again for Lettings Franchise of the Year at such a high profile event makes me extremely proud."
 
“This award is always one of the most competitive categories at the event and winning Gold for the fourth time is fantastic recognition of Belvoir’s ability to meet and exceed the expectations of our clients. This is what sets us apart from the competition and has enabled Belvoir to grow into a nationwide force to be reckoned with. Belvoir’s core principles are specialism, professionalism and customer service and our franchise owners remain totally committed to improving the services that they deliver year after year. For this reason I am also delighted that Belvoir won the Bronze Award for Best Customer Service Agency (Large) as we continuously strive to be the best in the industry."
 
The judging of the Lettings Agent of the Year Awards is chaired by The Property Ombudsman and has the backing of ARLA and NFOPP. Judges comprise highly experienced property professionals including leading agents together with other industry experts and specialists.
 
"The panel found Belvoir to be one of the most responsible, ethical and well-positioned franchise businesses in the industry with a 19-year track record to prove it; and we are pleased to award it the gold for the third year running. In short, Belvoir is an outstanding franchise operation.”

Thursday 3 July 2014

High risk = higher reward, 7.3% yield on The Lakes Estate

Hmmm, now this isn't an area we would normally advise a novice investor to buy into, but for the seasoned landlord or the brave hearted, this one offers great potential returns. The downside is that it is not the most desirable area by far, the upside being that if you could get the price any lower than £120K, with a rental of £775 PCM this would return 7.7%. Even at £127.5K, it will earn you 7.3%. Taylors in Bletchley have all the details for you, including (hopefully) some internal photos.....



Wednesday 2 July 2014

Great school catchment in Shenley Church End, this will return an easy 5% yield today

"Make me an offer" it says - so do that! £225k or less would see this great family home with a garage and conservatory yield 5% for you today, but better than that, it is in the catchment of one of THE best secondary schools in Milton Keynes, so this beauty will rent out year after year after year without any difficulty. Even better, they just built a brand new Sainsbury's on this road - what's not to like? Speak to Wilson Peacock and get that offer in before someone else does.
 
EDIT - you were too late!
 
 
 

Tuesday 1 July 2014

Woburn Sands 1 bed, £90k, potential yield of 7%

A nice little 1 bed apartment, close to the M1 for commuters or MK for local workers. Make a small investment in a shower for the bathroom and this could be back on the market and earning you £525 PCM. We ALWAYS have high demand for 1 bed properties to let, so this would be a relatively cost effective way for a new investor to get into the market. For further details, contact Christopher Francis in Woburn Sands....