6.25% Buy To Let – 2 Bed Kettlebrook, Tamworth B77

Good Morning, Autumn definitely seems to be setting in now, time to think about getting those winter coats out! 

The property I have chosen to post today is a 2 bedroom house in the popular location of Kettlebrook, it’s just come to the market with Green and Co of Tamworth and it’s being advertised on Zoopla.

                      Click here to view full details …..http://bit.ly/2djnzm4

On the market since August this property has been reduced twice in price, now offers over £120,000 

Looking at the particulars it last sold in September 2015 for £117,500, it appeared to be in a very tidy condition at the time so maybe the current owner has had a change of circumstances. 

It’s perfect  for a small family (one couple + child) or as a BTL investment, the benefit, it’s ready to move into, Rent expected £625pcm giving a yield of 6.25%

Kettlebrook is a great location, its within walking distance to the town centre and local network rail and if you are into your football, well Tamworth Football Club is only a stones throw away.

As always feel free to drop me a email on lorraine@hallandthompson.co.uk if you have also spotted a property online and would like a second opinion. Give me a call on 01827 425195 if you would like me to come along to the viewing, an extra set of eyes always helps.

Student Lettings – Are They A Good Opportunity For Tamworth Landlords?

Image result for student housing

When young people attend University many after their first year decide to live off campus for slightly cheaper rental prices. There is a few things to consider before joining this niche of the market and clients have asked me in the past if these types of lettings are lucrative to landlords. Over this article I will go over a few things to consider and hopefully give you an insight into this market.

Generally the houses closer to universities will cost more than the average on the outskirts of the city but you don’t have to buy one next door to the campus anymore – many students are able to drive nowadays. It is important to remember that location is not as important as accessibility to the university and local amenities for students.

As more and more students attend Universities landlords can expect to fill their properties with ease each year giving them maximum return on their investment in the property. With student loans also being more reliable than ever the chance of tenants not paying their rent on time is minimised and with the addition of parental guarantees this risk is even further reduced.

So what type of property is ideal to rent to a group of students? You will want a house with multiple rooms and as many bedrooms as possible. If each room are of equal size then that is ideal however many landlords will charge the tenant in the smaller rooms slightly less than the amount they charge for the larger ones meaning the landlords are not actually out of pocket.

Furnishings for the property will need to be robust and not easily breakable. Good quality fridge, freezer and washing machines being essential as you will be providing for multiple adults. Decoration wise again can be basic but functional with heavy duty carpets and coverings vital as well as easily washable fittings as to minimise redecoration expenditure in following years. For gardens many landlords will opt for low maintenance ones as it is unlikely that a student will get the lawn mower out but somewhere to sit and have a quick smoke or a barbecue may be on the tick list.

There are potential issues for larger properties falling into HMO (Houses in Multiple Occupation) legislation so if you are unsure with this, give us a ring.

Students will often only wish to start the commencement of their rent in September/October when term starts. Charging a lower rent during June can help to avoid having a void period in a landlords property by enticing students in early “to settle in” which is something we would strive to achieve for you, so if you are interested in this thriving side of lettings, again feel free to give us a ring, email or a message on one of our social media platforms.

 
 
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The 7,055 Tamworth Savers batten down the hatches with low interest rates set to continue into the 2020’s

You might ask, what has the plight of the Tamworth savers to do with the Tamworth Property Market … everything in fact.  Read the newspapers, and every financial wizard is stating that with the decision of the Bank of England’s Monetary Policy Committee in early August to cut the Bank of England base rate to an all time low of 0.25 per cent, savers should prepare themselves for interest rates to stay low well into the early 2020’s.
 
… And this isn’t some made up story to capture the headlines of newspaper editors. The yield (posh word for interest rate or return) on 10-year Government bonds is currently 0.61 per cent. This indicates that the money markets believe that the Bank of England’s base rate will, on average over the next ten years, be below the 0.61% rate they are buying the 10 year bonds at (because they would lose money if the average was over 0.61%). UK Interest rates are going to be low for a long time.
 
For those who have saved throughout their working lives and are looking for ways to maximise their savings, tying their money into property could prove advantageous. You see as a saver, I did a search of the internet and the best savings rate I could find was a 5 year fixed rate at 2.5% a year with Weatherbys Bank. Your £200,000 nest egg would earn you £5,000 a year – not much. However, on the other side of the fence, growth in Tamworth house prices and princely buy to let yields have made property investment in Tamworth an appealing option for many. According to my research, the…
 
Average Yield over the last five years for
Tamworth Buy to let property has been 5.6% a year
 
and average Property Values in over the same period have risen by 24.6%.
 
Using these averages, the Tamworth landlord’s property would be worth £249,200 and they would have received a total of £56,000 in rent – making the total return £305,200. Meanwhile, whilst our 7,055 Tamworth Saver’s, using the average savings rates for the last 5 years, even if they had reinvested the interest, their £200,000 would only be £221,184.

There are risks as well as benefits to buy to let though. As my blog readers know, I tell it like it is and investing in buy to let means locking up capital in a property that may fall in value. Another option would be stock market income based investment funds, which are paying around 5%, especially if put your nest egg into a tax free Stocks and Shares ISA. Although you can only add £15,240 a year into an ISA, but you would also have the ability to sell up quickly if you want … but one last thought…
 
The other side of the coin is that you cannot buy an unloved ‘stock market income based investment fund’ and set about renovating it and adding value yourself. The investment fund isn’t something that you can touch and feel, isn’t something tangible, isn’t something physical, isn’t something concrete, it isn’t bricks and mortar … and that is why my fellow Tamworth homeowners and Tamworth landlords is why the love affair of the British and Property will continue.
 
If you are considering becoming a new buy to let landlord in Tamworth, what do you know about the Tamworth property market? Do what many established landlords do and visit the Tamworth Property Blog where there is a catalogue of articles like this and where the best buy to lets deals are in Tamworth.          



 



 
 
 
 


BUY TO LET – Wilnecote, Tamworth

https://www.onthemarket.com/details/3089935/

While browsing On The Market I came across this three bed semi in Wilnecote, Tamworth, it’s being marketed by Taylor Cole of Tamworth at £159,950.

The house is modern clean and appears well presented throughout. For those of you who detest gardening, you are in luck there is no front garden to tend, in its place, two car parking spaces. Agents have advised that it is freehold but purchaser/s will need to check this.

Rental, well it’s a small modern house so £795pcm, not a great yield if you have a BTL mortgage, however there will be long term capital growth to be taken into consideration.

Reading the particulars there is a Section 106 agreement in place (based on that section of The 1990 Town & Country Planning Act) are private agreements made between local authorities and developers and can be attached to a planning permission to make acceptable development which would otherwise be unacceptable in planning …So be sure to ask the agent about this.

If this house takes your fancy, give the agent a quick ring to book a viewing.

Property details can be found here….https://www.onthemarket.com/details/3089935/

See something you like, send me the link and I’ll give my honest opinion.
Lorraine@hallandthompson.co.uk

www.hallandthompson.co.uk

Tamworth VS Lichfield property values – who has performed the best?

 
When purchasing a buy to let property, there are two ways landlords make money through property letting – capital growth and rental income growth.
 
A landlord from Cannock, who has a number of properties in both Tamworth and Lichfield, asked me a few weeks ago about the difference between Tamworth and Lichfield housing markets. He was focused on capital growth but also wanted to ensure his yield was relatively fair. I was quite surprised with my findings and wanted to share them with you.
The average property price in Tamworth is currently £193,264, In the last 3 months property values in Tamworth, according to my calculations, have dropped by 2.09%. Whilst in Lichfield average property prices in Lichfield are £279,499, having dropped by 0.54% in the last 3 months. Therefore, is Lichfield the better bet?
Well, not necessarily….
Over the last 5 years, property values in Lichfield have risen by 20.33% and in Tamworth by 23.49%, meaning over the last 5 years, property values have increased at a 13.45% quicker rate  in Tamworth compared to Lichfield.
But then there is question of yield, as Lichfield normally has slightly higher yields than Tamworth.
Each Tamworth (and Lichfield) landlord will have different needs and requirements in his or her property investment. If you want an unbiased opinion on what (and what doesn’t) make a good property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords.



If you would like to discuss my thoughts on the rental markets, feel free to drop me a line to lorraine@hallandthompson.co.uk


www.hallandthompson.co.uk

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk
Don’t forget to visit the links below to view back dated deals and Tamworth Property www.tamworthpropertyblog.co.uk





One To Watch! Property Under The Hammer In Dordon, Tamworth!

Spotted this little two bed terrace going to auction with Auction House Birmingham & Black Country with a starting price of £88,000 on the 6th of October – could be a lucrative let for a landlord if you can get it at the right price!

The property has been recently decorated and looks fresh throughout – ready to let by the looks of it, with an extension having been built to the rear this is an ideal property for a small family or a single young person looking for a rental property with a bit more space than a flat.

The property is close to amenities such as shops, takeaways and good schools. The property is also ideal for commuters looking for something outside the city but with easy accessible road links, giving it a somewhat easier time being let out.

Monthly rental income of  £595 from this property per month would make this quite a nice little earner for you – if you can get it at the right price at auction!

Remember to check the legal paperwork fully…..and auction fees will be due. Don’t go into auction and in the heat of the moment, bid on a property unless you have the finances in place.

If you like this property be sure to check the blog regularly for more fantastic opportunities in the local area, whether you are buying, selling or a landlord!

The property listing can be found in full at the following address: http://bit.ly/2cKxIbo

For more thoughts and opinions on the Tamworth Property Market, if you are a Tamworth Homeowner or Tamworth landlord, please visit the Tamworth Property Blog www.tamworthpropertyblog.co.uk

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk


Why not drop us a “Like” on Facebook, “Follow” us on Twitter or visit our website for more tips and alerts on the Tamworth property market!

The Science Behind Valuating Properties in Tamworth.

Valuating property can be a science that is very easy to get wrong which is why when deciding on a value for your home you must consider many factors on what sort of price should be being asked for, this if for a property you are either looking to buy or sell.

Getting an indication of the value of local property sales can give you a rough idea and many websites track the sales over periods of many years and looking at trends. You may decide you want a quick sale and value your home at less than houses on the market or place a bet that prices may rise and put in a higher asking price. Remember this is your decision, but getting good advice may help you save a few months of back and forth negotiations and may get you a good deal.

Property markets in areas can be sensitive to change especially if there is an influx in supply and demand. If the property for sale is in an area where houses rarely come up for sale you may see the offers are over the odds but if multiple properties come up – the opposite. This can be seen nationally and is not a phenomenon exclusive to Tamworth. An agent in the area will most often than not track prices in individual streets and area and if unsure they will know where to look (assuming you pick one who is willing to work for their money!)

If the property that is being bought or sold is unique or highly sought after such as many featured in our “Properties of The Week!” articles then it will naturally attract higher offers as buyers will pay a premium for a one of a kind.

A seller may be in a rush to sell their property and cut the price due to the circumstances they may find their selves in rather than risk threats of repossession or the home they’re looking to buy getting sold if in a chain.

Getting the right agent is important as they will know how circumstances can affect the value of properties so getting a reputable local agent to get an accurate valuation on your home and advise you where needed is of the utmost importance – do not be afraid to ask questions and look online for reviews to see if the agent has a proven record of achieving sales near to the valuations they give.

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What will the 0.25% Interest Rate do to the Tamworth Property Market?

I had an interesting chat with a Kingsbury landlord who owns a few properties in the town. She recognised me from my blogs and as her husband was shopping in the area (and let’s be honest talking about the Tamworth Property Market is a lot more interesting than spending hours in a car a showroom!) she wanted a quick chat. 
We had never spoken before (because she uses another agent in the town to manage her Tamworth properties) yet after reading my blog on the Tamworth Property Market for a while, the landlord wanted to know my thoughts on how the recent interest rate cut would affect the Tamworth property market and I would also like to share these thoughts with you……
 
Well it’s been a few weeks now since interest rates were cut to 0.25% by the Bank of England as the Bank believed Brexit could lead to a materially lower path of growth for the UK, especially for the manufacturing and construction industries. You see for the country as a whole, the manufacturing and construction industries are still performing well below the pre credit crunch levels of 2008/09, so the British economy remains highly susceptible to an economic shock. This is especially important in Tamworth, because even though we have had a number of local success stories in manufacturing and construction, a large number of people are employed in these sectors. In Tamworth, of the 36,732 people who have a job, 5,044 are in the manufacturing industry and 3,029 in Construction meaning
 
13.7% of Tamworth workers are employed in the Manufacturing
sector and 8.2% of Tamworth workers are in Construction
 
The other sector of the economy the Bank is worried about, and an equally important one to the Tamworth economy, is the Financial Services industry. Financial Services in Tamworth employ 1,212 people, making up 3.3% of the Tamworth working population.

Together with a cut in interest rates, the Bank also announced an increase in the quantity of money via a new programme of Quantitative Easing to buy £70bn of Government and Private bonds. Now that won’t do much to the Tamworth property market directly, but another measure also included in the recent announcement was £100bn of new funding to banks. This extra £100bn will help the High St Banks pass on the base rate cut to people and businesses, meaning the banks will have lots of cheap money to lend for mortgages .. which will have a huge effect on the Tamworth property market (as that £100bn would be enough to buy half a million homes in the UK).

 
It will take until early in the New Year to find out the real direction of the Tamworth property market and the effects of Brexit on the economy as a whole, the subsequent recent interest rate cuts and the availability of cheap mortgages. However, something bigger than Brexit and interest rates is the inherent under supply of housing (something I have spoken about many times in my blog and the specific affect on Tamworth). The severe under supply means that Tamworth property prices are likely to increase further in the medium to long term, even if there is a dip in the short term. This only confirms what every homeowner and landlord has known for decades .. investing in property is a long term project and as an investment vehicle, it will continue to outstrip other forms of investment due to the high demand for a roof over people’s heads and the low supply of new properties being built.


For more thoughts on the Tamworth Property Market, please visit the Tamworth Property Market 
www.tamworthpropertyblog.co.uk



 
 

“Property of The Week!” Spacious Family Home In Dosthill, Tamworth.

To close this week down, a family home ideal for the professional family looking to move into a bigger household. On the market with our good friends at Calders Residential, this property has an asking price of £419,950.

For that asking price you are buying a comfortable four bed detached house in one of the most popular areas of Tamworth with great features such as a fitted kitchen, modern bathroom large bedrooms (the master having an en suite), ample storage space throughout and well proportioned living spaces making this perfect for growing families as well as more mature families who are just looking for something a bit bigger without going “over the top.”
There is a large garden too that could do with a little bit of love but is otherwise a fantastic large space that features a gazebo, greenhouse and shed with a power supply (ideal for people who love tinkering!). Which added with the interior features make this an absolutely lovely home which I am sure will be cherished by the new owners as much as the previous ones.
Hopefully you all like this property, It is a little bit different from the grand countryside cottages usually featured but it is still a marvellous Tamworth home that just shows that you do not have to look far for those beautiful homes! If you have seen a property or would like to chat about buying, selling or letting feel free to contact me via social media, phone or email and I will get back to you at your earliest convenience!


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Tamworth Landlords – Single lets VS Multi-lets… what’s your strategy?

 I thought I was going for a quiet lunch in The Globe, just me and a few other oldies on a Wednesday, what could be better, anyway, I was accosted by a dear old friend who begged the
question ” Should I be changing my strategy and going into these so called HMO’s, I need to look
after my pension pot and this seems to be the new kid on the block”.


I always give the same answer – There are many strategies out there, the key to working in 
property investing is to find out what strategy fits your investment goals and lifestyle. 

Yes HMO’s or multi-lets can bring in more revenue and make you financially free (they have been
around for several years) they are very popular at the moment, however they are not for the faint – 
hearted or the inexperienced landlord. 

Legislation on a single let is a fraction of what legislation there is on a multi- let property and that’s not forgetting that your HMO may require a licence from the local Council. Contacting the local fire officer to gain advice on regulations and also becoming well known to the local housing officer would be very beneficial. 
Single let tenants tend to stay in property longer than Multi – lets, so voids would have to be factored in to your strategy. Wear and tear to property and furnishings is at a higher level than single lets. The list goes on and on…..

There is a lot of talk in the property world, the next strategy that we should be doing, HOWEVER what you and I should be doing is to regularly review our investment goals and take appropriate action should they change.There is always a way to make a profit in property, it’s just a case of finding your strategy so whether it be a single or multi – let, due diligence and a clear head is a must.


If you would like to read other articles about Tamworth Property Market, please visit the Tamworth Property Market Blog 

 
 
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