Friday, 18 December 2015

A “Stocking Filler” For Penicuik Investors?


Well, the market is now officially entering the Pre-Christmas “Silly Season” and I am finding it harder to find what, I would consider, to be good investment opportunities that I would want to put my name to. I’ve been scouring the portals this morning and not surprisingly, rich pickings are very thin on the ground.

One thing that has surprised me though is the number of investor sales, many with tenants in situ, that are currently coming onto the market, some offering refreshingly sensible yields to the next investor, others, well I don’t want to use the blog to embarrass any fellow professionals, so lets just leave it there shall we?

This situation only reaffirms the importance for investors and sellers in general, in getting the correct market advice at the right time. Selling assets, including property, is all about demand and having an asset for sale at the price at the right time. The mobile sandwich company doesn’t do deliveries to offices after 2:00pm for a very good reason; they may have the best sandwiches in the world, made from the best ingredients, but if you have already had your lunch and are therefore not hungry, you will not see the value and buy!

I say to all sellers, whether they are residential or investment sellers, it is important to have this mind-set when offering property for sale. If you are selling a property with tenants in situ, you know that only investors will be buying.  You should be advised that investors are a different buyer. They are, like you, there is no heart involved in their purchase, so if you would be happy with a gross yield of under 5%, then fine, market the property offering this level of return.

I promise you though, and I say this to all my investor clients, when you are selling to investors, you have to leave something in the deal for the next investor, otherwise why should they invest? Investors are successful people, not fools, and you do yourself no favours in the long term in trying to sell a property with minimal yields.  Remember, if you wouldn’t buy, why should they?

The market can be a cruel mistress; I have been selling high value assets for over 25 years and the one thing all assets/commodities have in common is this:

 “The market is the market.  At no time can your personal or financial circumstances, or indeed the value of your outstanding mortgage, have any bearing on the value of your house!” 

Anyway, the above flat is being sold by our friends at Stuart & Stuart.  It is a well presented 2 bed flat at 7 Andrew Court in Penicuik, just off the Queensway and it has gas central heating, double glazing and a shower over the bath (all thing regular readers of this blog will know that I think are very important).


The property is on the market for a fixed price of £90,000.  It will rent for £600 which gives a yield of 8%.  However, the property has been on the market for a whilst now so a cheeky wee pre Christmas offer may secure the flat for a lower price – a price of £80,000 would get you to an impressive yield of 9%.


If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik), give us a call 01968 674601 or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

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