I was with a
local landlord recently and we were having a conversation that, 6 months ago, I
couldn’t have imagined having. Being one of our investor customers, we are
continually engaged in the sourcing of investment properties on his behalf.
We were discussing
the strategy for the New Year and we were very upbeat. The discussions surrounding today’s property
adequately show why we are both feeling positive for investors going into the
New Year. As we reach dizzying heights
on pricing, with good yields having been difficult to find, suddenly a few
bargains are appearing on the market, and seasoned investors are beginning to
smell blood!
I am on the
portals and talking to agents every day on behalf of investors, and although
I’m not involved with selling any of the properties I am blogging about, so I
don’t know the “Ins and Outs” of the situation, some properties details have
“Repossession” written all over them! This is causing "Relative Value” to
creep in to the market and the gamble for investors is thus; is this just a
Pre-Christmas market bringing a few bargains that must be snapped up now, or
will a softening of values appear in the New Year, bringing some more
financially rewarding opportunities to the market?
Unfortunately
I don’t have a “Crystal Ball” but when asked to advise on the property above,
my advice was thus; the important thing to remember about markets is that it is
impossible to sell at the absolute “High” and to buy at the absolute
“Low!” There will always be another
opportunity available, so always look at an investment purchase in the “Here
and Now” and whether it suits your investment aims at the time.
Anyway, the
property above is a 3 bedroom terraced house in Assynt Bank, off Eskvale Drive
next to the River North Esk so within walking distance of the town centre and
all the associated amenities. Recently refurbished, ‘easy to let’ property with
a lounge as well as a separate conservatory, 3 separate bedrooms and a family bathroom,
this property would make an ideal rental property that, presented to the market
correctly, will let at a figure of £800 PCM.
It’s being
marketed by McEwan Fraser at an offers over price of £214,950. Given that the property is empty and part
exchange is available on it, you should be able to negotiate a reasonable price
on this one so let’s say it goes for £130,000.
The right tenants should pay £800 for a house like this so that’s a
yield of 7.4%. Given that it is an
‘easy’ buy to let property, that’s a good return.
If you would
like to explore how I can help you with your property investments, or should
you require any advice about investing in the Penicuik property market, wish to
enquire about our Investment Analysis Reports, Property Sourcing, Residential
Lettings or Property Management services, please do not hesitate to contact me
on 01968 674601 or at robert@thekeyplace.co.uk.
Alternatively
please feel free to pop in and see me at our offices at 6 Bank Street for a
chat, the coffee is always on.
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