Home sizes are a vital gauge of the character of housing stock in a locality. The chart here might surprise you a bit as lots of people think that everyone lives in the same kind of home as them but there are large minorities of people living different types of home.
Renting a property is as simple as purchasing the property and letting it out, you need to ensure the property in maintained and that you money set aside to cover these expenses. Although lenders will typically require the rental income of your investment property to be at least 125% of your mortgage payment amount, this doesn’t always mean that the property will generate positive cash flow or give sufficient net profit to cover all the expenses of maintaining the rented property over the typical 15 to 20-year ownership.
As well as regular and one-off maintenance expenses, allowances need to be made for times when there may be no rental income. Tenants may stop paying their rent and the property is sometimes empty between tenancies, and you still need to be able to cover the mortgage and other costs during this time.
It is therefore vital that you budget properly to ensure that the investment is worthwhile and not going to cost you money month-on-month, before you commit to buying a property to let.
An analysis of monthly changes in house prices should always be taken with a pinch of salt, particularly when looking at a very local area. To try to strip out some of the nuances, we’ve displayed flats and houses separately but you’ll see the usual amount of volatility.
The quarterly sales chart for the local area provides a detailed overview on how the market has performed in the last couple of years. Here we show the total number of property transactions every quarter. This is a useful way to look at how market liquidity has changed since the previous year, whilst accounting for seasonality.
If you venture online, pick up a paper, or watch the news, any mention of the property market in the UK comes with a measure of doom and gloom these days. However, interest rates are still very low and are not likely to rocket up, so it’s not a remotely dangerous time to buy or sell a home. Here are our three reasons homeowners should be optimistic about the prospects for the property market in Stockport.
The first and main reason to be positive is illustrated very clearly in the chart above. Long term house price growth in the area has been strong, with the average annual rate of growth since 2000 sitting at an admirable 10.2 per cent. The broad base of the market and the solid fundamentals underpinning it mean we expect this to continue in the medium and long term.
The next reason to be positive is the abundance of liquidity in the market. This means that lots of people are buying and selling and the market isn’t in danger of stagnation. In the second quarter of 2017 (the latest full quarter for which data is available), there were 382 sales. This is 153 per cent higher than the same quarter just eight years ago.
Rental returns: Despite former Chancellor George Osborne’s best attempts to slow down the buy-to-let market, the demand for rental property looks like it will increase. There will be plenty of chances for canny landlords thinking about purchasing a buy-to-let property or expanding their portfolio. The current local median monthly rent is £581, which means you could enjoy yields of 5.5 per cent.
With demand for homes increasing, vendors are in a healthy position where they can realistically hope to achieve the asking price, or higher, for their property. When you compare lack of availability to high demand, it seems even more plausible that you will be happy with the final sale price.
The third reason to be positive is the amount of sanity in the national market, which has come about because of more grown-up mortgage regulation. The meteoric rise in prices in the area pre-2008 led to price ‘froth’ building up in the market, which ultimately caused the 2008 crash. While price growth since 2008 has been less rapid, it is far more sustainable and will save us from another crash. Why don’t you pop into our office for more info?
I am always looking for investment properties for my investors and today I have found a great property for you all! This property is located in Offerton, so the postcode is an SK2 postcode which I don’t often get the chance to write about as its quite rare to find a great investment in the Offerton area as house prices tend to be a little higher in SK2 than SK1 and SK3 where investment properties are a plenty! Therefore, its tricky to get the yield an investor wants in SK2.
However I have found something for you… so back to this great find on Norcross Close! The property is a three bedroom quasi semi which is in good condition. The property benefits from a spacious kitchen allowing for a dining area and also a large living room and utility room on the first floor. As per the image in this article the kitchen looks modern and has a nice neutral colour scheme – requiring little/no work. At the rear of the property is a large lawned garden – perfect for summer BBQ’s! It boasts three good sized double bedrooms on the first floor (which is a rare find) however I think from looking at the images that the property is in need of a little modernisation throughout in terms of the paint colours and bathroom tiling. Changing this to neutral colours would allow for a more modern look and feel and would attract more viewers and hopefully allowing us to achieve a better rental price for you!
The best thing about this property is the price! It is currently on the market for sale with Bridgfords Hazel Grove at £120,000 which is a great deal! I believe that after a small renovation (about £2,000 would need to be spent) that the property would rent for between £700pcm and £750pcm which would give you a yield of 7-7.5% which is fantastic!
If you want to book a viewing or if you have any questions about investing in a rental property in Stockport please contact me on 0161 474 8668.
The relationship between rental income and the amount you can borrow to finance your investment is one of the most important.
One of the first checks lenders make when you apply for a buy-to-let mortgage is whether the rental income is high enough to cover the repayments and associated costs of letting the property.
Although it can vary, lenders usually want rental income to be 125-130 per cent of the amount you repay on the mortgage each month. Knowing this, it makes sense for you to check these figures for yourself, before you apply, by following these steps: