Buy to let deal of the day - can you brave an HMO?!

So, the way to get a VERY nice yield at the moment is to be brave and venture into the world of HMO's (Homes of Multiple Occupancy). Yes, they're more complex as you have to adhere to a multitude of regulations but, if you go about it in the right way and are thorough in your research, you can make a serious income.

I spotted this one this morning which is a ready made HMO with a 9.8% yield - yes, you did read that right, 9.8%!!! It's a 7 bedroom property in Feltham (don't be a snob!) on at £499,950 and the current owner is getting £4,100 pcm in rent. Think you can be brave for that amount of rent each month?!



http://www.rightmove.co.uk/property-for-sale/property-31658274.html

Rebecca Smith

Buy to let deal of the day - perfect for first timers

I bumped into someone on the high street yesterday who I used to work with and who I haven't seen in ages. Seems he's been following my blog though, unbeknownst to me!  He asked me why I do these 'buy to let deals of the day' especially when I'm not a sales agent and so gain nothing from promoting properties for sale. 

I told him the reason is simple....I love property and studying what makes a good deal. I therefore want to help those who have had even the smallest inkling of a desire to invest in property understand what they should know before they do. It can give you a very nice nest egg and more if you're careful and take everything into consideration. But, on the other hand, it can also be a minefield which can leave you seriously out of pocket if you don't know what you're doing. Needless to say, if someone buys an investment property following my advice then it would be great if they used my services as a letting agent! ;o)

So, back to business....this one I think is ideal for a first time investor as you can just give it a lick of paint and get it straight on the rental market, or, you can throw a chunk of money at it and really increase the value. Your choice, and, of-course, you could do the money throwing at a later date if you prefer.

It's curb appeal and location will make this one bed flat with a BIG private garden VERY easy to rent.....

   

On at £349,950 it should rent at £1250pcm, if you spruce it up a bit, which would give you a yield of 4.3%. I'd take that any day of the week! :o)

http://www.rightmove.co.uk/property-for-sale/property-45520949.html

Rebecca Smith

The future of the Teddington rental market

It might surprise some of you to know that the average rent that tenants are paying for a rental property in Teddington are around 12% higher than the peak of Spring 2008! In late 2008 and early 2009, there was a major dip in the rents that were being achieved for Teddington property of around 10-11%. However, since 2010, rents have steadily risen by around 3-4% a year (depending on area) since the credit crunch and in 2013 rolling into 2014, a lack of decent stock available to rent means rental averages are, in the main, still rising.

Rents have steadily risen in 2013/2014, despite the squeeze on ‘real’ wages, due in part to the demand from tenants working in London who are happy to commute. There are still plenty of people willing to pay for well-maintained properties in great locations, such as Teddington and Hampton, and commute into central London in 37 minutes.

At the start of 2012, the average rent in Teddington was approximately £1,817 per month (a decent rise from the 2009 average of £1,608 per month). As we go into the summer of 2014, average rents in Teddington stand at £2,053 per month.

From a landlord perspective, the steady rise in rents is good news, as ideally rents need to keep up with inflation to maintain investment returns. Property prices in Teddington are also starting to rise (nearly 11% in the last 12 months) after large falls since the credit crunch of 2008, so maybe Teddington could be one of the few areas across the UK where it is possible to secure capital growth returns and potentially higher income (yields) in the future.

Rebecca Smith

Buy to let deal of the day - ready made 5.4% yield

This is a no brainer. 

A big (over 1000 sq ft), four, yes FOUR, bedroom slit level flat in Surbiton. 



No internal pictures so you may need to spend a few £s doing the usual to get it to a decent rental standard if it's not up to scratch. It's less than half a mile to the centre of Surbiton with the fast train link into Waterloo so a good location (if you ignore the busy road and being over shops). Don't forget though - you don't have to live there - plenty of other people will!

It's on at £424,950 and is currently being rented at £1900pcm so a ready made investment with a 5.4% yield. Nice!

http://www.rightmove.co.uk/property-for-sale/property-47217131.html

Rebecca Smith

Buy to let deal of the day. Good yield + adding value = happy landlord!

This one caught my eye this morning as to me its a no-brainer. Yes, its in Isleworth so, ok, not the most desirable location - for you - but it is for lots and lots of people looking to rent!

This is a do-er up-er which is always a bonus if you want to take on some work as you're immediately adding to the value. On at £279,950 its a decent size 2 bed maisonette with its own front and back garden. Long lease of 145 years and only £100 pa ground rent. So that's not going to do too much damage to your bottom line....

  

I like it. Spend £5k doing it up, the usual new kitchen and bathroom and a lick of paint and it should comfortably get £1,250pcm rent. So say your total investment, not including fees, is £285,000 that would make a very nice yield of 5.3%. 

AND you would probably have increased the value by about £30k just by spending £5k on doing it up to a decent rental standard! 

http://www.rightmove.co.uk/property-for-sale/property-31504917.html

Rebecca Smith.

Teddington landlords got a 14.2% return last year!

I was talking to a landlord from St Margaret’s the other day about the Teddington and Hampton property markets following my recent article in TW11 Magazine. With all the news about house prices rising, he wanted to know what had happened to average property prices. Well, there is no such thing as an ‘average property’, but according to my calculations, the ‘average value of a property’ in Teddington is now £692,518, which is a rise of £47,936 from the figure I quoted on the Teddington Property Blog 3 months ago of £644,582!

Now by my calculations, the average rent being asked in Teddington is £2,053 per month, which means the yields/annual return are an average 3.6% per year. However, what is impressive is that in the last 12 months, the average value of a property in Teddington has risen by 10.6%, meaning landlords achieved a total return of 14.2%.

When comparing this to what you get in return from banks, buy to let could be good investment for you. Don't get me wrong, there are pitfalls. Hampton landlords would have seen a 10.4% return for the year and Twickenham landlords a better 13.6%. Be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple. Take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't.

Rebecca Smith.

Buy to let deal of the day - big 3 bed!

I really like this one. Its big, at over 1000 sq ft, with 3 bedrooms in a great spot. Hinchley Wood, if you don't know it, is right next door to Esher and Thames Ditton. It has great schools, a pretty high street and this flat is right in the middle of it all, literally over the road from the train station without being near enough for the trains to be a problem.

   

Perfect standard for a rental so no need to spend anything on it. Should comfortably fetch £1400pcm which, considering its on at £399,950 gives you a yield of 4.2%. Of-course if you can do some haggling and get the price down then all the better!

http://www.rightmove.co.uk/property-for-sale/property-31437735.html

Rebecca Smith