Why you need to contact me first!

As a local chap working in the property industry in my local markets it is easy to forget that for people who don't really know the local area, finding a property that provides a steady stream of income with minimum amount of stress can be a hard task and one could end up with a property or tenant that does nothing but cost them time, money and a lot of hassle. Some of you may be thinking "that is why you speak to the local estate agents", however they are employed by the seller to sell the property, not by people looking to buy. It is in there interest to sell the property and earn their commission, that's what matters to them, what doesn't matter is who buys it and whether or not it's the best property for them. 

Over the last week or two I have been dealing with investors on different ends of the spectrum. On one hand we have a gentleman from London who has in excess of one million to spend on several investments and on the other hand a couple from Cambridge that don't know Margate too well and want to be fairly cautious so are looking for a 1 bedroom apartment in the region of £80k. Even though they are looking at differing properties, ultimately the aim is the same. Both want a secure investment that will bring a constant stream of steady income with as little stress as possible.

This is where I can come in, with almost a decade of experience within the industry and in the local area with the knowledge that I have garnered, I can assist in the property search. I can tell you what to buy, where to buy it and what not to buy and where not to buy it! Why can you trust me over other agents? Quite simple. I don't sell property, my advice is free and completely impartial. What's the catch? There is none, hopefully we get on well and you would like me to find you a suitable tenant and manage the property eventually, but there is no obligation so if you want to then you can go elsewhere. 

So really you have nothing to lose by contacting me first before you go ahead with a purchase. You can even send me a link to the property you are interested in and I can let you know if it will be a decent investment choice. 


Come in for a chat. Teas and Coffees are on me! 

A cautionary tale to all landlords...

Do you REALLY know who you are renting out your property to? How do you know that the person you meet is the person they say they are, and not an illegal sub letter? Would you knowingly want to be involved with shady tenants, or would you rather be protected from them?

What if your tenant trashes the place, rips off doors and radiators, kicks holes in the walls or runs a cannabis factory from home? Where do you stand – probably not where you want to be, that’s for sure. We have reports of these horror stories (and worse!) from even some of our seasoned landlords, who all had enough experience to cope with such matters – or so they thought. Can you imagine the stress and financial burden this would put on a novice at the start of their investing career?

The common denominator here is people – well, specifically tenants. Property investors often forget this is a PEOPLE business, it’s all about how you deal with them and how they interact with you, how you pick the good from the bad in the first place, and how do you know who to trust? Well if you don’t do thorough due diligence on your new tenants then the truth is you don’t. Would you honestly spend, for example, a quarter of a million pounds on a nice 3 bed semi and then effectively hand it over to strangers? Some landlords, and even agents, state that they want (and will get) a tenant living in an empty property before the week is out. Hmm, OK, let’s think about this – I don’t know you, you want to potentially be entrusted with what is in effect a LOT OF MY MONEY tied up in the value of my property, not to mention that I will effectively be offering you credit to the value of 6 months’ rent – well I certainly want to know all I can about you my friend! First I want to take up references from your current and previous addresses, I also want to contact your employer to confirm not just your salary but also that you DO HAVE a permanent position there for a period covering your initial tenancy. Got any CCJs or financial defaults? If so then I want to know, because as I don’t know you, it tells me you are a financial risk that I could do without.

Obviously, anyone’s situation can change, so I’d like to pop around in 4 weeks to make sure you have settled in OK and got to grips with everything at the property – oh did I mention, I’ll be back in 3 months as well, and every 3 months after that, just to keep an eye on my property. Sorry what’s that, you don’t think that’s fair? Well there are currently 97 other agents listed locally on Rightmove, perhaps they could accommodate you.

You see at Belvoir, our landlords get the protection from all of the above in the detailed level of service and tenant referencing we offer. What we want our landlords to understand is that we DO know our applicants even before they become our tenants, and that’s one of the things you pay your monthly fee towards. Come on, would you really gamble £250k for a saving of around £16 per month on your fee? If so, there are 97 phone calls you could be making. If not, just the 1 call to us on 01843 293 293 is all you need to make.

Interesting investment opportunity in Margate?

Hopefully everyone had a good weekend but it is Monday now and time to get back in to the swing of things. 

Over the weekend there was one particular property that caught my eye. The investors I have been dealing with recently have the same mindset when it comes to purchasing in this area. They don't want high risk properties that can give them more bang for their buck, they want a solid property that can give them a decent yield and an attractive capital growth. Who doesn't?! I hear you say and you'd be exactly right. So it is imperative that you have your finger on the trigger and be ready to pull it when something comes up. With that being said I don't think this one will hang around for long. 

The property is similar to one that has recently let around the corner for £725 however I would expect £750 and the current asking price is £140,000. If you peruse others on the market around the area and of similar size and facilities you will see most are in the £150k - £160k range. Depending on purchase price you will be looking at a solid 6% and above gross yield. 

The property would more than likely let to potential long term tenants giving you a solid base for a few years. 

If you are currently looking to invest in property in Thanet then come and speak to us so we can give you some tips. Remember we don't sell property so our advice is impartial.

For full details click the link below

http://www.rightmove.co.uk/property-for-sale/property-40382623.html

6.75% Yield in Central Margate

One of our investors completed on a property in Marlborough road recently, the property had been refurbished by the previous owners so was ready to rent immediately. The property had been sold early 2014 for £95,000, had a bit of money and tlc thrown at it and was back on the market by November and sold for £120,000. The property was on the rental market for 3 days and on its first viewing we had found a tenant (once referencing had been passed). 

There is high demand for good quality property and is driving the rental prices up. If you want to be kept up to date on areas and properties that would be good for investments then give me a call. 01843 293 293 or email gavin.horton@belvoirlettings.com

The Highs and Lows of Milton Avenue in the last 14 years.

A landlord I know has owned a few properties on Milton Avenue for the last thirteen (ish) years. She came in to our office to take advantage of our tea and coffee making facilities (me!) and to discuss the rise and fall of property prices on Milton Avenue and how this has affected her yield over the years.

In 2000, when she purchased her first property on Milton Avenue, the average value of a terraced house on the street was £44,649 which had a sharp rise to £86,879 by 2003. This rise in value continued and in 2006 the average value was £107,250. At the height of the property boom in this area, a terraced house on Milton Avenue had an average value of £113,028. This soon dropped and in 2009 - 2010 the average was £98,832, this year has seen the average value increase to around £108,000.

When she told me of the rents she had achieved on the street, they seemed fairly stable over the thirteen years. In 2003-2004 the average rent was £410 per month, in 2006 – 2007 this rose to £556, in the slump between 2008 – 2010 it dropped marginally to £540 and now the average rent in Milton Avenue is £575, dependant on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 6.4% on Milton Avenue at the moment.

If you would like some advice with your potential investment, please come and see us in our office along Northdown Road. I do make a great cuppa!

Data Source - Zoopla Sold Prices - Rightmove Plus

Who wants 7.6% -- 9% yield!?

This property has come on to the market with Cooke & Co estate agents. One bedroom flats are renting very well at the moment and  would achieve in the region of £350 and £375 each month. The current owner claims he had been receiving £400 a month but seems a bit high to me, but still achievable obviously. Properties like this don't need to have a lot of money thrown at them to get them up to a rentable standard. As long as there is a decent kitchen and bathroom, a lick of paint should suffice. So a purchase price of £55k (unless you can knock a bit off) and a minimum rent of £350 each month gives a cool gross yield of 7.6%. Lets imagine for arguments sake that you can purchase this one for £50k and you tart it up a bit. Rent it for £375 a month. You would be looking at a fantastic 9% gross yield! Not bad at all!

Check out the full particulars here

http://www.rightmove.co.uk/property-for-sale/property-46915450.html

Margate Terraced Property Values Increase By £266 Per Week

Regular readers may remember that recently I wrote about house prices in Ramsgate and the increase in the last year. So I thought I would do the same for Margate.

Over the last 12 months the average property value in Margate has risen by over £15,500 from £167,063 to £182,606. A very nice 9.3% increase. I took a closer look at terraced properties as they make up nearly 34% of the housing stock in Margate. The average cost of a terraced house at the moment is £162,497 which is £13,827 more than this time last year. A nice increase of £266 per week. 

One of my Landlords who invests all over East Kent has recently bought in Canterbury so I thought I would compare our Seaside town with the Student City. Interesting results.

Canterbury has a higher weekly increase in value of £298 but prices in Canterbury are higher than Margate so we need to note the percentages on this one. The percentage increase in Canterbury in the last year is 6.9%, which is still not a bad return. However this is trumped by Margate with its 9.3% increase. It is also worth noting that property in Westgate on Sea increased by over 11% and Broadstairs is nearly 13% which is a testament to how Thanet’s property market is performing. 

If you need any advice on what to buy and where to buy it then drop in for a cup of tea and a chat. Alternatively give me a ring or drop me an email on gavin.horton@belvoirlettings.com