Thursday, 30 October 2014

Don't Judge An Ugly Grey Semi by it's Depressing Exterior (7.0% Gross Yield)

From the outside, this 2 bedroom semi in the popular Grindon (SR4) area is as grey and drab as you can get but internally its 'Ready to Let' and therefore will be popular!

Rightmove have consistently advised us for many years that they find tenants really aren't concerned about the exterior or 'kerb appeal' of a property, it's what inside that counts!

Priced at £77,500 it will return 7.0% Gross Yield based on a very achievable £450pcm rent (you may be able to push for £475...)

Click here for details 

Call us on 0191 567 8577 or email for more information

Wednesday, 29 October 2014

"Needs Work" Three Bedroom SR5 Semi (7.9% Gross Yield)

This 3 bedroom semi in Witherwack (SR5) could be a bargain and with a bit of work prior to letting would be popular with long term, family tenants

The current kitchen and bathroom are very basic so to secure a Good Tenant it really could benefit from them being updated and following this, decoration & new flooring throughout

Adding a generous £15,000 onto the £59,950 asking price would still deliver 7.9% Gross Yield based on £495pcm rent & it's highly likely that in making the improvements you'd add more to the value of the property 

It's worth noting that whilst the most recent sale in this street (in 2010) was for £75,000 the prior sales were before the financial crisis and they were all for over £80k for similar 3 bedroom semis (one sold for £87k in 2005!)

Click here for details

Call us on 0191 567 8577 or email for more information

Don't Miss Out On Any Investment Bargains!

I try to email a weekly update with links to all posts that have been published within the previous week but having spoken to a couple of disappointed investors I'm conscious that waiting for the weekly email means you may miss out on an investment bargain if it gets snapped up in the days beforehand 

You don't need to risk missing out anymore! 

If you're viewing this on a PC (rather than a phone or tablet where it would default to 'Mobile View', which doesn't have the facility) there will be a 'Follow By Email' box on the right of the page, near the red title block at the top, where you can enter your email address and get an email alert for each new post!

Alternatively at the same place at the top of the page you can subscribe to an RSS Feed but that's a bit more complicated and you'd need an RSS Feed Reader, such as bloglines so unless you are an avid consumer of many blogs my advice would be just to stick to the email alerts!

Tuesday, 28 October 2014

Three Bedroom Pallion Semi (7.3% Gross Yield)

Pallion has a lot of terraced 'cottages' and ex-council semis but not so many of this type of traditional semi, which given this is a 3 bedroom property (which are in short supply in Sunderland) will mean this will be popular with a range of tenants

It's on the market for £79,950 and whilst the kitchen looks acceptable the lack of bedroom and bathroom photos suggests it would be worth working on a further spend for decoration, flooring (and possibly a new bathroom suite) to bring it to a good, lettable condition 

Based on a £10k improvement budget on top of the above it will return 7.3% Gross Yield, working on £550pcm rent

Click here for details

Call us on 0191 567 8577 or email for more information

Friday, 24 October 2014

'Ready to Let' 2 Bedroom Redhouse Semi (7.7% Gross Yield)

Regular readers of this blog will know Redhouse in SR5 is one of my preferred areas for picking up affordable properties that will deliver good yields and long term tenancies for Good Tenants

This tidy 2 bedroom semi is perfectly presentable and 'Ready to Let', meaning you're not going to build in capital growth through doing it up at the start but the upside is it's ready to go and will deliver an instant rental income

Based on the £69,950 asking price and a very achievable £450pcm rent (£475 may be possible...) it will deliver a very respectable 7.7% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

Thursday, 23 October 2014

Superb Extended Moorside Flat (6.4% Gross Yield)

This 2 bedroom, ground floor flat has been extended to give a dining room and a much more spacious kitchen and has been finished to a very high standard so it's going to be very popular with professional tenants looking to live close to Doxford! 

What you lose out on capital growth potential & to a lesser extend Yield you'd make up in lack of voids!

The Yield is not terrible by any means - at £93,000 and based on £495pcm rent it will return 6.4%

Click here for details 

Call us on 0191 567 8577 or email for more information

3 Bedroom Terrace in Popular Redhouse (6.6% Gross Yield)

We first highlighted this 3 bedroom terrace in July & it's still on the market so may be worth reconsidering

It offers spacious accommodation and in our experience will appeal to a wide range of working tenants (predominantly couples & families from the local area)

It requires only a lick of paint in a couple of rooms, the patterned carpets replacing as required and a freshening up of the bathroom - this should be covered off with £5k on top of the £85,000 asking price

Based on a total investment of £90k and an achievable rent of £495pcm it will return 6.6% Gross Yield and better still, is likely to attract long term tenants

Click here for info

Given it's been on the market for a few months now it may be a good time to press the vendors for a reduction!

Call us on 0191 567 8577 or email for more information

Tuesday, 21 October 2014

Three Bedroom 'Ready to Let' Semi in Hylton Castle (6.6% Gross Yield)

This 3 bedroom semi is in a great 'Ready to Let' condition with tasteful contemporary decoration and good kitchen and bathroom - given the condition & location it will get lots of interest from Good Tenants

It's priced at £89,950 and based on a conservative £495pcm rent will return 6.6% Gross Yield

It may be possible to achieve more than £495, but the risk in pushing above the £500 ceiling being it won't be seen online by the core market of those searching 'upto £500', so may take longer to let (and therefore may not make commercial sense to do so in the long run)

Click here for details

Call us on 0191 567 8577 or email for more information

Monday, 20 October 2014

High Rise Lakeside Village Flat with High Yields (+9%)

This 2 bedroom, 12th floor flat in Lakeside Village looks to be in a decent condition and offers the chance to make great returns

The Gentoo-managed blocks are popular with more mature tenants and this property looks to require only minor cosmetic improvements to maximise its letting appeal

It's priced at OIRO £59,950 and will easily rent at £450pcm (there's actually a 15th floor flat in a nearby Tower being advertised at £500pcm...but in our experience that's very ambitious) so based on our figures will return 9.0% Gross Yield

Being leasehold there will be a service charge to consider

Click here for details

Call us on 0191 567 8577 or email for more information

Friday, 17 October 2014

Hurry!! Open Viewing Sat 18th Oct! One of the Best 'Doer-Upper' Bargains I've Seen in Ages (+7% Gross Yield + Lots of Capital Growth Potential)

You've no time to waste on this one! There's an Open Viewing at 11am on Sat 18th October (tomorrow!) and I guarantee this will get snapped up!

It needs A LOT of work so won't be for everyone - you'd need to factor in around £20k for a full refurb throughout including new kitchen and bathroom but once done, given this is in a very sought after 'owner occupier' area, professional family tenants will be fighting over themselves to snap it up for the long term

The most recent 3 bed semi let in this street went for £695 in a matter of days last year

Based on that figure and a total investment of £115,000 it will deliver 7.2% Gross Yield

Looking at capital growth potential, nothing has been sold in this street after the housing market crash but prior to that similar 3 bed semis were going for between £160 - £170k so there is a lot of scope for capital appreciation as we see prices start to rise again

Click here for details

Call us on 0191 567 8577 for more information or better still, get down to the open viewing and if successful, call us next week!

Thursday, 16 October 2014

Buy Well, Don’t Chase the Yield

They say you make your profit when you buy a property, not when you sell it

You're more in control of what you pay rather than what you are forced to sell for

With this in mind, why pay the high end retail price for a property just because it looks sweet & idyllic, when what you really need is a property that meets all the financial requirements of a landlord first & foremost?

It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win 

The most important message to convey in all of this is that investors must buy well in the first place, because if you start the investment process in the wrong place, the rest of the maths just do not stack up

If a property price is too high, and you just cannot get anywhere negotiating some money off the price, then there is only one thing to do and that is walk away, there will always be another opportunity along soon

The novice investor often thinks that by paying more for a property they will get a better property or a better tenant but this is not necessarily the case

Investors cannot reasonably expect the market, which is an average of many transactions and house prices, to change its tune in order to meet them at the now inappropriate level of return (yield) that they expect, simply because they paid too much – market forces don’t work like that

If a property investor is not sure on the potential rental levels for a given location, they should speak to us for free, impartial advice 

We can let them know not only how much rent to expect, but from that we can advise them how to work out what the maximum is that they should be paying, and how ‘lettable’ a particular property may be – there is absolutely no point in buying something, or somewhere, where very little demand exists

And as for buyer beware, novice investors better had beware it with a capital B

Check out the larger, more important facilities in the house such as the boiler, electrics and plumbing and check for any signs of damp

This is especially important when buying at auction or paying in cash, because many investors won’t do this, and if they end up buying a problem then they will own that problem

If you're thinking of getting into the property rental market in Sunderland and don't know where to start, speak to us for impartial advice and guidance to get the best return on your investment

For more information about potential investment properties, or for advice on your own investment choices, call us now on 0191 567 8577 or pop along and speak to us in person at our offices in Frederick Street, Sunderland

Two Bedroom Hylton Castle Semi (7.7% Gross Yield)

This 2 bedroom semi is in a quiet square close to Nissan & the A19. It looks to be in a decent condition and will appeal to a wide range of tenants

It's priced at £70,000 and based on achieving £450pcm rent will return 7.7% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

Wednesday, 15 October 2014

Ugly "Needs Work" 2 Bedroom Millfield Cottage for Under £50k (8.3% Gross Yield)

This 2 bedroom terraced cottage in Millfield has 2 reception rooms and 2 bedrooms in the dormer. It needs work internally and is pretty awful to look at externally, but if that puts off potential owner-occupiers it could mean investors can pick up a bargain!

It needs work (new kitchen & bathroom, new flooring & decoration and something needs to be done about the front...) but even so, adding a generous £15k on top of the £49,950 asking price will still return 8.3% Gross Yield based on £450pcm rent

I'd have a close look at the roof as well if I was you, from the picture it doesn't look great

Click here for details

Call us on 0191 567 8577 or email for more information

Monday, 13 October 2014

Farringdon 2 Bedroom "Doer-Upper" (+7% Gross Yield)

This 2 bedroom semi is being advertised without internal pics and according to the Estate Agent is 'In Need of Updating' so that should tell you something...that said, at £65,000 it could still be worth a look

Assuming that you need a new kitchen and bathroom and full decoration & flooring throughout it would still bring the total investment in at around £80k, so based on £475pcm would deliver over 7% Gross Yield...obviously if you can strike a deal or the cost of improvements is not as bad as expected, so much the better

Interestingly, no properties have sold on this street between December 2007 and March 2014 and the recent sale (of a 2 bedroom semi) was £77,000 and prior to the crash they all seemed to achieve between £75k and £80k

Click here for details 

Call us on 0191 567 8577 or email for more information

Good House in a "Bad Street" But It Will Let to Working Tenants! 7.0% Gross Yield

Deerness Park in Hendon has a bit of a dodgy reputation for only attracting non-working tenants but we've just let a property in this estate just like this 1980's 2 bedroom semi to a decent working tenant in super-quick time, so in our experience the bad reputation doesn't hold up to scrutiny

Anyway, we do believe the old adage that it's better to have the best house in the worst street rather than having a bad house in a good street...and this one looks pretty good internally

With this in mind, priced at £67,500 and returning 7.0% Gross Yield (£395pcm) it's worth a look

Click here fore details 

Call us on 0191 567 8577 or email for more information

Thursday, 9 October 2014

Look Beyond the Shocking Bright Turquoise Kitchen for a Decent 3 Bedroom Semi (7.0% Gross Yield)

I've never seen such a retina-burning turquoise kitchen (click're intrigued aren't you!). This may put many owner-occupiers off but those investors able to see beyond it and who are willing to spend a little to decorate and sort the garden out can pick up a decent investment here

Given it's ex-council the rooms will be a good size and it comes with a decent garden (admittedly this is in a bit of a state) so with a bit of TLC and decoration it will easily achieve £495pcm

It's priced at £77,500 but I'd allow at least another £5 or £6k to bring it up to a good lettable standard - worst case basing the calculations on a total investment of £85,000 it will return 7.0% Gross Yield

Click here for the shocking kitchen! Your Move will wonder why it's suddenly getting so many visits!

Call us on 0191 567 8577 or email for more information

'Ready to Let' 2 Bedroom, 2 Reception Room Semi (7.4% Gross Yield)

This 2 bedroom, 2 reception room semi in Downhill is new to the market and it's likely to be popular with First Time Buyers as well as First Time Renters so don't delay - it won't be available for long

It's 'Ready to Let' with a modern kitchen and bathroom, off street parking and a lawned garden to the rear

It's priced at £79,995 and will achieve £495pcm rent, returning 7.4% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

2 Bedroom Extended Bungalow in Good Condition (7.1% Gross Yield)

Bungalows don't tend to come up as private rented properties in Sunderland as often as houses or 'cottages' and with an ageing population & a rise in the number of older homeowners selling their home to live off the proceeds, decent bungalows to rent are likely to be increasingly popular in years to come

This extended 2 bedroom bungalow in Town End Farm is in good internal condition, has off street parking & a low maintenance garden

It's on the market for OIRO £80,000 and based on paying this asking price and £475pcm rent, it will return 7.1% Gross Yield

Call us on 0191 567 8577 or email for more information

Wednesday, 8 October 2014

Desperate Vendor Alert!! Bargain 2 Bedroom Semi (8.5% Gross Yield)

When I saw this 2 bedroom semi in Farringdon come up this week as a New Instruction with Dowens I remembered posting about it earlier this year. This tells me that the vendor has identified that the solution to the problem is to throw another agent at it...which often smacks of desperation and is music to an investors ears!

Looking back I said this would be a good investment at the £85k they were looking for back in April so it makes an even better investment at OIRO £69,950 now being sought through Dowens

It's in good condition and won't need much more than a lick of paint to achieve £495pcm rent, returning 8.5% Gross Yield (compared to the still decent 7.0% when we originally highlighted the property)

Chances are at this price it will get A LOT more interest so don't delay

Click here for details

Call us on 0191 567 8577 or email for more information 

Increase Yield by Spending More?

With house prices in Sunderland starting to see a gradual upward trend I'm always interested when agents repeatedly reduce the asking price  

For example, Peter Heron have been marketing this property in Benton Avenue, Town End Farm since February 2014 and have dropped the price on two occasions to its current level of £85,000

It looks to have been Owner-Occupied for many years and has suffered from a lack of investment (the kitchen in particular is dated) but even so, if purchased and rented in its current condition with no improvement works it would achieve £495 per month – a Gross Yield of 6.9%

Town End Farm is a popular area and with three bedroom properties in short supply in Sunderland, based on the similar properties we have let in the surrounding area it would only take a new kitchen & a lick of paint throughout to increase that rental price nearer to £550 per month

I would budget a modest £5,000 spend to bring the property to a good rental standard.  What would interest the investor is that the total spend on the property would still be much less than the £94,950 it was originally marketed for but the Gross Yield would increase to 7.3%

140% Increase in Private Rented Homes in Sunderland Since 2001

It seems a distant memory that back in 2011 we were all filling in our Census returns, but now the final figures for each individual area have been released. It all makes for some very interesting reading especially around the property sections, so let’s look at the Sunderland figures.

Currently, of the 119,758 properties in Sunderland, 60% are owned and 38% rented (that leaves 2% of 'other', maths fans). Comparison with 2001 reveals that the headline percentages are pretty much exactly the same then as now, so unlike other areas there is no massive swing from home ownership to renting in Sunderland (although it is worth noting that there has been a 5% reduction in Mortgaged Home Ownership during the decade).

Things get far more interesting for Buy to Let investors when you look at the change in the composition of the rented sector. 

Back in 2001 86% of the 45,318 rented homes were classed as Social Rented, with only 12% in the Private Rented Sector. Fast-forward to 2011 and the Private Rented Sector now makes up 28% of all rented accommodation in Sunderland with 13,077 privately rented properties compared to 5,453 in 2001  - a significant increase of 140% more homes in that period.

It's likely that this is simply the market plugging the gap left by the transfer from Sunderland Housing Group to Gentoo which has coincided with a reduction in the Social Housing stock by over 6,600 properties.

It's not as if massive amount of new homes were built in Sunderland during the period (there are only 3,402 more homes in 2011 than in 2011 a pretty poor average of 340 new homes per year), so this fits with our expectations that the rise in the Private Rented Sector has been through a change in the tenure of the existing housing stock rather than a "New Build Buy to Let Bubble", as other towns and cities have experienced during the period.

So what does this all mean...? I would suggest that the fact that there has not been such a 'Bubble' combined with an ongoing shortage of good quality family accommodation in the Private Rented Sector puts Sunderland in a stronger position than most for attracting investors over the next decade.

Most commentators predict the demand for rental property will steadily continue to rise, as the UK turns into a more European model of home ownership meaning there should be strong tenant demand in Sunderland and when this is combined with a relative shortage of accommodation to meet this demand it should suggest a continuation of strong yields and the potential for capital growth.

Tuesday, 7 October 2014

'Ready to Let' Hylton Castle 2 Bedroom Semi (7.7% Gross Yield)

This 2 bedroom semi-detached house in the popular Hylton Castle area (SR5) is 'Ready to Let' and will appeal to a wide range of tenants

It's priced at £69,950 and will easily achieve £450pcm, returning 7.7% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

Friday, 3 October 2014

2 Bedroom Redhouse Semi with Conservatory (6.5% Gross Yield)

This 2 bedroom, ex-council semi in the popular Redhouse area is in great internal condition and with a conservatory and spacious rear garden will be popular with families

It's priced at £88,000 and based on this plus £475pcm achievable rent will return 6.5% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

'Ready to Let' 3 Bedroom Seaham Mid Terrace (7.7% Gross Yield)

This 3 bedroom terrace in the Parkside area of Seaham doesn't set the pulse racing externally but it is in great condition internally & will be popular

It's 'Ready to Let' and will easily achieve £450pcm (probably more like £475pcm) and based on the £69,950 asking price and lower rent amount will return 7.7% Gross Yield

Click here for details

Call us on 0191 567 8577 or email for more information

Wednesday, 1 October 2014

First Floor Two Bedroom Moorside Flat (7.4% Gross Yield)

This 2 bedroom first floor flat is in the popular 'Lofthill' purpose built blocks from the early 1980's

The close proximity to Doxford International & the A19 means there will be no shortage of tenants, be they working singles, couples or older tenants looking to downsize

This flat looks in good condition with a modern kitchen and bathroom so no major work is required - it could benefit from a more neutral colour scheme so decoration will be required prior to letting

It's on the market for £72,500 and based on paying this and £450pcm rent it will return 7.4% Gross Yield so it could make a good low risk, low maintenance first investment

Click here for details

Call us on 0191 567  8577 or email for more information