The Milton Keynes Property Blog: April 2016

Wednesday 27 April 2016

Newport Pagnell project - £215k, needs modernising, yield of 5% after refurbishment

Our find today is in need of some 'TLC' shall we say - this is definitely a timewarp property, with hints of 70's style and décor, but nothing that can't be sorted within a month....

If nothing else, the main structure and fabric of the building seems to be in order, with updated UPVC windows and gas to radiator central heating, but of course don't take for granted that this all works efficiently (or even at all). I would certainly consider as a minimum the following works:

- Full repaint

- Complete new flooring

- New kitchen

- New bathroom & WC including hiding the ugly pipework

- Full electrical inspection

With a good builder on side (we have a number of these on our books, reasonably priced and they do a great job) and 4 weeks of your time, you will see change from £15k for the above schedule of works, but of course there could also be hidden horrors to discover or extra remedial work worth attending to while you have the house in pieces.

On the market for a very reasonable £215k, I would imagine the house to be worth £235k when completely updated to a modern standard, so there is immediate capital growth to be had, not only that but you will future proof the property and find it much easier to let over the coming 5-7 years without any significant further expense. As for the rental value, I would pitch this between £950-995 PCM when it goes onto the market, and given that it sits pretty much 100 metres away from and opposite a fantastic secondary school, this will be snapped up by local families who wish to stay for a good few years, ensuring long tenure, no re-letting fees and a steady income stream.

http://www.rightmove.co.uk/property-for-sale/property-59083709.html

If you struggling to find anything decent on the property market and need a little help finding potential bargains like the one above, speak to us about how we can keep you appraised of the latest opportunities before the rest of the pack. For more information about other potential investment properties that we could introduce you to (such as ready tenanted properties for sale by our existing landlords), or to ask about our thoughts on your own investment choices, call us now on 01908 562582 or send us an email.

miltonkeynes.enquiries@belvoirlettings.com

Tuesday 19 April 2016

Cash buyers only - Old Stratford maisonette, £120k with 6.3% gross yield

Small yet perfectly formed, this 1 bedroom ground floor maisonette would make a fantastic starter property or nice addition to any portfolio, with ongoing high demand for similar rental properties locally.

Offered for sale at £120k cash only, this is because the lease will be too short to be able to mortgage against, likely to be around 60 years or so. For a canny cash buyer though, this could be a lovely little gem that could be smartened up for just a few thousand pounds, with the addition of more modern kitchen units, some new white goods, maybe look at the bathroom (no photos of this) and a quick lick of paint. With UPVC double glazed units already installed and a gas supply also connected, it is virtually all in place already, just needs a slight cosmetic lift.

On the rental market right now, this would easily rent for £625 PCM, maybe even up to £650 PCM if literally everything was sorted including fitting an efficient gas boiler. This would yield at least a 6.3% gross return, far better than having the cash in the bank - plus, do look into the price of renewing the lease, because it could well be viable and would certainly add to the resale value in the future when you come to dispose of this.

http://www.rightmove.co.uk/property-for-sale/property-53808139.html

miltonkeynes.enquiries@belvoirlettings.com

Thursday 7 April 2016

Right property, right location - Walnut Tree 2 bed semi, £215k with 5% yield

This is such a good location in which to invest in a smaller family home, and this particular example looks ready to let as it is.....

Located on Walnut Tree, within easy walking distance of 3 schools, a vast range of shops, a Doctors surgery and pharmacy, and with gas central heating and a huge garden, this property is calling out to young families or couples wishing to have children shortly. Long term capital growth is the real benefit of this property, as it will ALWAYS be popular and in great demand from tenants, so if it is kept in good order it will never be without a paying tenant family, as this location is a magnet for them with so much to offer.

The asking price of £215k seems reasonable given the condition of the property but try to get a little knocked off, as we have now passed the mad rush to beat the stamp duty deadline for purchasers of a second or investment property, but with a rental yield of 5% at £895 PCM today, this at least represents a good return and in a fairly safe location when it comes to future rental potential. Why do I say that - because literally over the road is The Open University which employs thousands of people, many of whom are new to the area and want to be close by in a decent property. There is also excellent road access via the A5, A421 and M1 all located very close by, along with numerous other great local employers with world class reputations, such as John Lewis at Magna Park, Red Bull Formula 1 racing team at Tilbrook and Mercedes Benz Finance at Caldecotte to name but a few.

http://www.rightmove.co.uk/property-for-sale/property-53679751.html

miltonkeynes.enquiries@belvoirlettings.com