Update On The SR5 Tenanted Portfolio First Posted In March (now +9% Gross Yield)

Back in March I posted about a tenanted portfolio of 6 properties in SR5 that were being sold with tenants in situ. I've just noticed that 4 of them are still on the market - and given some time has passed since March it may be to go in with a cheeky offer!

Click the link for the previous post Portfolio of 6 Tenanted Properties in SR5 (For Sale as Portfolio or Individually) - 8.8% Gross Yield

Click here for the links to each property 
http://www.rightmove.co.uk/property-for-sale/property-51368639.html
http://www.rightmove.co.uk/property-for-sale/property-51368648.html 
http://www.rightmove.co.uk/property-for-sale/property-51368645.html 
http://www.rightmove.co.uk/property-for-sale/property-51368633.html

Two are promising £475pcm and two are promising £520pcm - as before I think £520 is a bit high (I'd work on £495pcm) so that will bring in a combined £1940pcm 

All four of them have been reduced to £70,000 and given the time on the market the seller may be open to offers - if you based the calculations on getting 5% off the price of them individually they'd deliver 8.6% or 8.9% Gross Yield

They don't have to be bought together but anyone in a position to do so would be able to negotiate a more substantial discount - based on the above the portfolio would return 9.2% Gross Yield based on securing a 10% discount on the combined £280,000 price

Once again we don't know the internal condition or the calibre of tenant, but the properties are in an area where finding working tenants shouldn't be an issue assuming the properties are in a good condition

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com to chat about this opportunity or any aspect of the Sunderland property market

Tenanted Bonners Raff Apartment Under Our Full Management (8.8% Gross Yield)

One of our Landlords is looking to sell this Fully Managed 1 bedroom apartment in the ever-popular Bonners Raff development and it could make a great low risk investment

We've a long term, professional tenant who's been paying £550pcm since January 2014 but even after that ends the apartment will be popular - in our experience the Bonners Raff development always is 

Based on £550pcm and the £75,000 our Landlord is looking for (including all fixtures & fittings), this investment will deliver a healthy 8.8% Gross Yield

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com for more information

Large Victorian Terrace Split Into 4 Tenanted Flats - Managed By Belvoir Since 2010 & For Sale By Auction (10.8% Gross Yield)

We've managed the 4 flats that make up this large Victorian terraced house on the Hendon/Ashbrooke border since 2010 and it's been consistently occupied with working tenants

There are 2 good size one bedroom flats (on the ground floor and 1st floor), a small one bedroom flat in the rear extension and a 2 bedroom flat on the top floor

We're getting £300pcm for the small one bedroom flat and £350pcm for the other three, giving a monthly rental return of £1,350pcm (although we have achieved more for the top floor 2 bedroom flat in recent years)

The Auction Guide Price is £150,000 and based on paying this and the current rents the building will return 10.8% Gross Yield but even if there is interest in the room and it sells for £180,000 it will still return a healthy 9% Gross Yield

The 4 flats are in a clean & tidy condition but further investment to improve them internally will increase both their achievable rent & popularity

They're being auctioned on 21st July - click here for details http://www.zoopla.co.uk/for-sale/details/37277821

Call me if you'd like more information on this opportunity or any aspect of the Sunderland property market - call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Bargain 'Ready to Let' 2 Bedroom Moorside Flat (7.6% Gross Yield)

Most 'Ready to Let' 2 bedroom Moorside flats sell for between £85,000 - £90,000 so this one, priced at £74,950, at looks to be a bit of a bargain

Given their location close to Doxford International Business Park, Moorside flats like this are popular with young couples, professional sharers and also older tenants looking to downsize

Regular readers of this blog will know that Moorside flats with gas central heating are most sought after and can command a premium rent - and this one has GCH as well as a garage in a separate block

Based on the £74,950 asking price and a realistic £475pcm it will return 7.6% Gross Yield (or 7.9% based on £495pcm, which may be possible)

There's an open viewing on July 4th at 10am and at this price it will go following this open viewing so my advice would be to get in there early or you're likely to miss out

Click here for details https://www.onthemarket.com/details/1285674

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com for more information on this property or any aspect of the Sunderland property market

Only £55k 'Ready to Let' One Bedroom Flat Near Doxford International (8.7% Gross Yield)

This tidy 1 bedroom first floor flat is in Hall Farm, which is a little further away from Doxford International Business Park than the more common 2 bedroom flats in Moorside or Chapel Garth but its only about half a mile further away so this shouldn't be a deal breaker or prevent it from getting interest

In our experience it may attract an older tenant than the young professionals who often share a 2 bedroom flat in Moorside & Chapel Garth (which are popular as they are walking distance to the Doxford International businesses), which in itself may not be a bad thing

It's priced at £55,000 and therefore may make an ideal first, low outlay investment - based on a realistic £400pcm it will return a very healthy 8.7% Gross Yield

As this is only a 1 bedroom property it's worth a final word of caution that 1 bedroom flats tend to change tenants more often than most (as people outgrow them more easily), but again if it attracts an older tenant who may be downsizing this may not be the case

Click here for details http://www.rightmove.co.uk/property-for-sale/property-47423249.html

Call me on 0191 567 8577 to discuss this property or any aspect of the Sunderland property market

At £65,000 Do 2 Bedroom Apartments in River View, Sunderland Make Good Investments?

I was contacted by a potential investor earlier this week who had approached me for my advice and guidance on the River View development in Low Street, Sunderland. Whilst he was an experienced investor he'd not bought previously in Sunderland and having looked at the prices and potential returns of the apartments in River View wondered "what's the catch?"

The development of around 90 two and three bedroom apartments was built in 2004 and gives enviable views over the River Wear towards the harbour, The National Glass Centre and Sunderland University St Peters Campus 

The layout of the apartments means that they all have views over the river from the lounge (I suppose given the name of the development they couldn't really skimp on this!) and most apartments have usable steel framed balconies overlooking the river

The development attracts a range of tenants - there are students (both UK based and International) however they are not in such high numbers that the building becomes unattractive to working locals - this can't be said for other nearby developments such as Echo 24

In addition to the students we find that it is popular with both young couples and young professional sharers

It appeals to sharers as the 2 double bedrooms are of comparable size (not always the case with modern apartments) and there is one decent bathroom with a shower (rather than the master bedroom having an ensuite and the 'family bathroom' not having a shower which can be the case elsewhere) - see our rather whizzy 3D floorplan for the layout of a typical 2 bedroom apartment or click here to go online and see it in more detail

It also comes with secure parking

Back in 2004/5 the 2 bedroom apartments which make up 95% of the development were being sold for between £125,000 to £215,000

The range in prices is quite alarming! Clearly there will be a premium for an upper floor apartment with a better view but given the layout and floorspace will be pretty much identical, that's some premium for the view!

After the initial flurry of interest prices settled down to around the £160,000 - £180,000 mark in 2005/6

Tellingly there have been 91 transactions in the development since they were built in 2004 and only 8 of those transactions came after 2008

No sales took place between May 2008 and November 2011 and of those 8 transactions, the most recent (in Feb 2015 a 2 bedroom apartment went for £65,000) with the average price of the 2 bedroom apartment sales being £63,833

When it comes to rents in Sunderland £500pcm is the magic number and significantly more people will be searching in this price bracket than any higher price bands - with this in mind whilst 2 bedroom River View apartments have rented out at £500/495pcm since I can recall (we picked up our first one to manage back in 2008) it would be unwise to base any calculations on achieving higher rental figures any time soon

There are a handful of River View apartments currently for sale - click here for the links to Rightmove and Zoopla listings & you'll see most are being offered for between £60,000 and £75,000 but you'll see one agent has two for sale and they are looking for OIRO £115,000...the technical term for this is 'they're having a laugh'

Based on paying £65,000 and achieving £495pcm you'll get a Gross Yield of 9.1%

As a word of caution there is a lot of competition out there in the City Centre with far more 1 or 2 bedroom flats/apartments than the current tenant demand requires, meaning City Centre rents have fallen in many areas/developments and at the same time tenant expectations are rising - not a great combination for Landlords

It must be said though that River View bucks this trend somewhat - as mentioned above the rents have stayed firm at £495pcm when similar apartments elsewhere in the City have suffered rent reductions

I'm often asked about the area and it must be said that based on postcode alone River View sits in Hendon, which is perceived to be not the best area in Sunderland (it was the only area in Sunderland selected for the 'special measures' of Selective Licensing in 2010) - that said in our experience of managing a number of apartments in the development there have been no major issues in recent years

There was a period around 4 or 5 years ago when there was a spate of break-ins and the secure car park was not-too-secure but a change in block manager and a corresponding increase in security for both the parking areas and the building as a whole seemed to nip this in the bud and we've had no reports of problems with crime in the last 2 or 3 years

The walk down from the City Centre is short and it's well lit on major busy roads

This is getting into super-detail but it could have financial implications so it's worth mentioning...the building only has electric heating and we know that the immersion heaters are very temperamental (and seem to have a 10 year lifespan meaning they are starting to break down around now) and mistakes/poor workmanship with the electricity metering by the original developer has caused some problems - a few of our Landlords have been hit with heavy bills as a result

As a final work of caution, Sunderland should always be viewed as a Yield city rather than a Capital Growth city but the constant trickle of River View apartments being put on the market to sell (by owners who bought prior to 2008 and cannot afford to subsidise their losses any longer or in the worst-cases properties being repossessed) means that in the short to medium term there is likely to be very little increase in value, if any at all

Overall regular blog readers will know I like this development and it certainly makes a lot more sense if you can buy an apartment for £65,000 - £70,000 today than if you'd paid £125,000 - £215,000 back in 2004/5

If you want to chat about investing in River View, Low Street or any aspect of the Sunderland property market please give me a call on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Good Condition Two Bedroom Semi in Redhouse (7.7% Gross Yield)

This 2 bedroom semi in the popular Redhouse area may need a lick of paint to neutralise some of the rooms but the rest of the house looks to be recently renovated and in a good condition, so it should be popular with local working tenants

It looks to have a modern fitted kitchen, decent flooring, off street parking to the front and a garden to the back

It's priced at "Offers Over" £70,000 but based on paying the £70k and a conservative and achievable £450pcm (it may be possible to achieve £475 but it may take longer to let as a result) will return 7.7% Gross Yield

Click here for details http://www.rightmove.co.uk/property-for-sale/property-51145094.html

Call me if you'd like to discuss this or any aspect of the Sunderland property market - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Tenanted 3 Bedroom Terrace in Hetton-le-Hole (8% Gross Yield)

One of our current Landlords is looking to release equity through the sale of this 3 bedroom terrace that's got good, long term working tenants who've been renting it since 2012

It's in a decent condition, has 2 reception rooms, 2 double bedrooms and a single bedroom and has had a new fitted kitchen installed in the last year

The owner is looking for £67,000 and based on the current £450pcm it will return 8% Gross Yield

If you're interested and would like further information please email me and I'll put you in touch with the owner direct

Attractive 'Ready to Let' 3 Bedroom Town End Farm Semi (6.8% Gross Yield)

I've noticed the rents for 3 bedroom properties in Town End Farm creeping above the £500pcm mark in the last few months, with £550pm for a good one now looking to be the norm...and this looks to be a Good One

It's got 2 reception rooms, 3 double bedrooms and looks to be in a neat and tidy condition with contemporary but tasteful decoration, decent flooring and modern kitchen and bathroom

It's priced at £97,500 and based on the £550pcm above will return 6.8% Gross Yield

Click here for information https://www.onthemarket.com/details/1644603

Call me to discuss this or any aspect of property market - call me on 0191 567 8577, email neil.whitfield@belvoirlettings.com or pop into our Frederick Street office

Immaculate South Hylton Semi (7.3% Gross Yield)

This 3 bedroom ex-council semi has been renovated to a very good standard throughout and given the shortage of good quality family homes in sought-after South Hylton it's bound to be popular

It's got a lot going for it - large gardens to front & rear, overlooking a pleasant green, it's got a large, modern open plan kitchen and a stylish bathroom 

It's being advertised for OIRO £89,950 and based on paying this and achieving a very realistic £550pcm rent it will return 7.3% Gross Yield - it may be possible to achieve higher rent (upto £595) and therefore get a better return, but I'm erring on the side of caution...

Click here for details http://www.rightmove.co.uk/property-for-sale/property-48741313.html 

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com to discuss this or any aspect of property investment in Sunderland 

'Ready to Let' Modern 2 Bedroom Apartment (7.4% Gross Yield)

I was interested to see this modern top floor apartment in Silksworth come onto the market earlier this week, having worked with the developer during the construction of the development back in 2009

It looks to be in great condition and is bound to be popular with young professional tenants

It could be a bargain - it's on the market for £80,000 with the most recent sales of similar 2 bedroom apartments in this development being for £96,000 in 2013 and £99,995 in 2010

Based on paying the £80,000 asking price and a realistic £495pcm rent it will return 7.4% Gross Yield

Click here for details http://www.rightmove.co.uk/property-for-sale/property-49475989.html

Call me to discuss this property or any aspect of property investment in Sunderland - call 0191 567 8577, email neil.whitfield@belvoirletttings.com or call into our office at 11 Frederick Street

Sunderland Sold Prices Were Only 17% Lower Than London in 1995...How Things Have Changed!

Looking at the recent post showing the variations in Sunderland sold prices since 1995 we can see that Sunderland property prices have hardly gone up at all the last few years and are a million miles away from achieving the double digit growth levels that are being achieved in Greater London

The rate of house price inflation in Sunderland continues to show very little growth, with the average price of a property sold in Sunderland in the 12 months to April 2015 only 1.5% higher than in the previous 12 months, according to the latest Land Registry data



Looking at the longer term picture, the Sunderland property sales market continues to be very flat, with the average sold price of £137,650 in April 2015 being only 0.88% higher than 3 years ago in April 2012 and as the above graph shows, actually 10.7% lower than in the 12 months up to April 2010

Looking at the graph above, it's startling to note that in January 1995 the average price of a property sold in Greater London was £93,682 - this was only 17.3% higher than the average price of £79,880 in Sunderland 

Now the average London property sold price is £483,643 - that's over 350% higher than the average sold price in Sunderland

Sunderland has seen an encouraging uplift in the number of properties sold throughout the last 12 months as demand for housing grows, which suggests more significant house price growth in the City may follow in due course

Since the Second World War in the UK, observers have consistently noted that when the number of properties sold increases, property values grow soon after

With this in mind the 8% uplift in property transactions in Sunderland for the year up to February 2015 indicates that more significant house price increases, in line with what's being experienced elsewhere in the UK, may soon follow

When you compare Sunderland with London, you could be looking at two different countries

In London, price to earnings ratios are impacting on demand - the average property value is often 15 or 17 times the average wage in London...in fact, in Knightsbridge the ratio can be 30 to 1 

In Sunderland this ratio is a much more affordable 5.7 to 1 (click here for an interesting Daily Telegraph article reporting that Sunderland has the second lowest average salary in the UK at £24,072)

That said, the number of people wanting to sell in Greater London has dropped considerably in recent months, meaning that falling sales volumes combined with a general slowdown in activity in the run up to the General Election have resulted in lower mortgage approvals for home purchases

The acceleration in house price growth in London in the last two years was preceded by three years of rising transactions

As we see above, a similar pattern is being registered in the Sunderland area, as pent up demand slowly returns to the market supported by low mortgage rates and an improving economic outlook

But before you get the Champagne (or even the Prosecco) out, while the uplift in activity is welcome news, the number of Sunderland property sales in the year to February 2015 is still 43.6% lower than the level seen in 2007 and property values are 22.7% below 2007 levels

The ongoing housing recovery is far from broad based and remains focused on middle to higher value areas within Sunderland where households have equity and find it easier to access mortgage finance

What this means is that investors with access to finance looking to purchase rental properties in the core 'upto £100,000' bracket can take advantage of market conditions and negotiate hard to pick up bargain properties that may deliver better-than-average capital growth

If you want to know more about the Sunderland property market, please don't hesitate to contact me on 0191 567 8577, email neil.whitfield@belvoirlettings.com or pop into our office in Frederick Street

Versatile 3 Bedroom Terrace Near Chester Road & Sunderland Royal Hospital (+6.8% Gross Yield)

We've managed a couple of properties like this one on this street (Croft Avenue SR4) over the years and based on this, we know it could be popular with families, professional sharers or students

It needs a lick of paint on the front and in some rooms just to freshen it up but otherwise looks to be in a condition that will attract Good Tenants

Whilst you would be able to command a higher rent, I'd not advise you bought this as a student property (there are a number of reasons for this, if you want more detail on why I'd not advise this please give me a call...) so the calculations below are based on renting it as a family home

It's priced at £105,000 and I'd advise that £600 - 650pcm will be achievable, returning 6.8% - 7.4% Gross Yield

Given the shortage of good quality, larger-style family homes it should be popular and attract long term tenants

Click here for details https://www.onthemarket.com/details/1644531 

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com to discuss this property or any aspect of property investment in Sunderland

Three Bedroom Downhill End Terrace (8.2% Gross Yield)

This three bedroom end terrace in the popular Downhill area of SR5 just needs a lick of paint in a few bedrooms & a shower fitting in the bathroom and following this it should be popular with working families

It's being offered by the Durham-based estate agent for £79,995 and interestingly they're also attempting to get £650pcm for it - we've noticed it as we can see it's been on the market 'To Let' for over 8 weeks...

It's clear that the agents don't know the local market as £650pcm is way more than the going rate for this type of property in this area - we see that comparable 3 bedroom properties in this part of SR5 tend to go for between £500 and at most £550pcm

I'd also suggest that as the decoration in some of the bedrooms need attention and the fact that the outside space is scruffy (or was when the photos were taken) makes their chance of securing a market-busting premium rent even less likely!

Based on a more realistic £550pcm (which I'd suggest is achievable given the kitchen and bathroom look good and there seems to be a lot of outside space) it will return 8.2% Gross Yield

Click here for details to buy it http://www.zoopla.co.uk/for-sale/details/37143394 or to pay over the odds to rent it http://www.zoopla.co.uk/to-rent/details/37150143 

Call me to discuss this property or any aspect of property investment in Sunderland - call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

'Ready to Let' Millfield Cottage Refurbished to Good Modern Standard (7.7% Gross Yield)

This 2 bedroom terraced cottage has a great looking kitchen, a modern bathroom and everything else looks fresh and clean and tidy...it should rent out very easily

The current owners have clearly done all the work for you so you're not going to be able to build in any value post-purchase, but the upside is you'll let it as is from the outset

It's priced at £70,000 and based on a realistic £450pcm you'll achieve 7.7% Gross Yield

Click here for details http://www.zoopla.co.uk/for-sale/details/37088748

Call me if you'd like to discuss this or any aspect of property investment in Sunderland - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Stunning Bonners Raff Duplex Apartment Nearly Half The Original 2004 Price (7.1% Gross Yield)

There are certain Sunderland apartment blocks I don't think very much of and then there are a few which I like, both from an aesthetic point of view but also based on how they stack up as investments - Bonners Raff in SR6 is one of my favourites and this bargain 2 bedroom duplex looks to be worthy of investigation

The original sale price back in 2004 was an eye-watering £196,201...it's now being advertised for nearly half that at £110,000

That looks good, but on further investigation I reckon you may be able to chip away and get it for even less!

There have been very few sales in the building in recent years, the last sale was back in 2011 for a 2 bedroom apartment that went for £89,000 (this in itself was 40% down on the original sale price of £148,000 in 2007)

This means that there's little to go on for comparison and you may be able to strike an even better deal (the ad mentions they're a 'motivated seller' looking for a quick buyer) 

I'd not hold my breath for any double digit capital growth or expect to offload it for close to £200,000 any time soon but if you could buy it for around £100 - £110k you'll inevitably get a significant increase in value in the long term

The last time we rented out one of these duplex apartments was a couple of years ago and it went (quickly) for £600pcm but looking at recent activity I'd suggest £700 is very achievable

Based on this it will return 7.1% Gross Yield

Click here for details http://www.zoopla.co.uk/for-sale/details/35151002

Call me about this property or any aspect of property investment in Sunderland - call 0191 567 8577, email neil.whitfield@belvoirlettings.com or come to our 11 Frederick Street office for a chat

Another 2 Bedroom Riverview (Low Street) Apartment (8.5% Gross Yield)

I've highlighted a couple of these in recent months as being worthy of consideration and this one is no different (all of the 2 bedroom apartments in the building are identical!)

It's on the 5th floor, so will have good views, it looks neat and tidy, if a little overpriced

The last sale in this building was in February 2015 when £65,000 was paid for a similar 2 bedroom apartment - with this in mind as this one is being sold for £74,950 I'd be tempted to put in a cheeky offer on the basis of securing a quick sale

Let's assume you get it for £70k...it won't need much doing to it and will let out at £495pcm, so based on this will return 8.5% Gross Yield

Clearly being leasehold there's service charges of £100 or so a month to consider but given I consistently advise that we never have any trouble finding Good Tenants for this building it could be worth a look

Click here for more information http://www.rightmove.co.uk/property-for-sale/property-52412678.html 

Call me or drop me an email if you'd like to discuss this one or any aspect of property investment in Sunderland

Almost A Quarter Of Sunderland Tenants Will Never Own Their Home

A recent survey from Knight Frank, has underlined the increasing dominance of the private rented sector as a form of tenure in the UK. In the largest survey of its kind ever conducted, 24% of the 3,500 private tenants surveyed expected to always rent a property

The survey found that 15% believed they would be in the sector for a further five or more years

Click the link below to read the excellent research document in full

http://content.knightfrank.com/research/707/documents/en/2014-2407.pdf

The survey, conducted with YouGov, also showed that while the difficulties in getting on to the housing ladder are an issue for many renters, whilst 32% of tenants state that they are living in the private rented sector because they like the flexibility it brings & they don’t want a mortgage and over a third (37%) of under 25's saying it suits their lifestyle, the largest reason given for renting was because of a lack of mortgage deposit (44%)

That said, the survey shows that the majority of renters do not view the private rented sector as just a short-term move

Less than a quarter of tenants expect to leave the sector within two years

The dynamics of the housing market, where supply has failed to keep up with demand which in turn has played a role in pushing up house prices, has also put home ownership beyond the reach of many young workers

This, coupled with an increasing mobile and flexible workforce, has led to rising demand for privately rented property

Off-street parking is the amenity most private tenants are prepared to pay extra for, although the survey shows fully furnished flats will attract a premium among younger renters, especially the 18-24 age group

Of course this is all good news for Landlords, as it ensures a steady demand from tenants in the years to come, and if you provide a decent property in tune with market demands you will be on to a winner

The importance of the housing stock available through the private rented sector cannot be underestimated, and many new investment landlords are taking the opportunity to build a property portfolio in these continuing times of historically low bank interest rates, and after having bought/renovated/let your first property, the next one will be a much less painful process

If you are thinking of getting into the property rental market 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 other potential investment properties or to ask about our thoughts on your own investment choices, call me now on 0191 567 8577, email neil.whitfield@belvoirlettings.com or pop along and speak to me in person at our office in Frederick Street

Rare South Hylton 3 Bedroom Semi (7.3% Gross Yield)

This 3 bedroom ex-council semi in South Hylton could make a great long term investment - it's not a full renovation job but does need some work doing to it (giving the potential for capital growth at the start) and once done will be very popular with working families

South Hylton is a sought after area for tenants, it has it's own Metro station, it's close to the A19 giving access to the rest of the region and compared to most of Sunderland it doesn't have a lot of privately rented properties - meaning when a decent one comes up it has a queue of tenants

This property has a decent kitchen but needs a new bathroom and is in need of a lick of paint and new flooring throughout - I'd work on a budget of £10k on top of the £80,000 asking price

Based on this and £550pcm rent it will return a healthy 7.3% Gross Yield and given what I said about the scarcity of properties in South Hylton, voids shouldn't be an issue

If you're interested I wouldn't mess about - South Hylton is popular for homeowners as well as investors so this may get snapped up quickly

Click here for more information http://www.zoopla.co.uk/for-sale/details/37009365

Call me if you'd like to discuss this or any aspect of property investment in Sunderland - call 0191 567 8577, email neil.whitfield@belvoirlettings.com or call into our Frederick Street office for a chat

'Ready to Let' 2 Bedroom Semi in Farringdon (7.1% Gross Yield)

This 2 bedroom semi in the ever-popular Farringdon has been refurbished throughout to a good lettable standard

It has a modern kitchen and bathroom, two double bedrooms and front & rear gardens

Priced at OIRO £79,950 if you pay this and achieve a conservative £475pm rent (£495 may be achievable but I'm working on worst-case) it will return 7.1% Gross Yield


Click here for details https://www.onthemarket.com/details/1578356 

Call me to discuss this property or any aspect of property investment in Sunderland - call 0191 567 5877 or email neil.whitfield@belvoirlettings.com

Cheap 1 Bedroom First Floor Flat Close to Doxford International (8.7% Gross Yield or Even Better...8%-ish with GCH)

This is a tidy looking 1 bedroom flat in Lofthill (SR3) near Moorside, which means it's near to the Doxford International business park that's home to EDF, Barclays, Royal & Sun Alliance & More>Than

All this means that you're likely to have no trouble attracting young professional tenants looking to live walking distance to work

This flat looks to be in a decent condition (with a stylish & modern kitchen and bathroom) that is "Ready to Let"

You'll get £400pcm which based on the OIRO price of £54,950 will deliver 8.7% Gross Yield

But I don't suggest you do that...

It's only got electric storage heating which is a major turn-off for some tenants so it would be far better in the long run to connect up the gas supply (if I'm not mistaken, looking at the picture the top and bottom floor flats have already done this, the first floor one hasn't) and install Gas Central Heating

This will mean some additional decoration and flooring costs but in the long run it will pay dividends - we do find that tenants don't stay as long in flats with electric heating, typically leaving after they've shivvered through one winter (they tend to give notice shortly after receiving their massive quarterly electricity bill!)

Click here for details https://www.onthemarket.com/details/1582465

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com to chat about this investment opportunity or any aspect of property investment in Sunderland

Ugly Pallion 4 Bedroom End Terrace (6.8% Gross Yield)

This one is not a thing of beauty but give it a coat of Sandtex White on the pebbledash and it becomes instantly more attractive! It will still need work internally but once done offers spacious accommodation that will appeal to larger families

On top of the external work I'd budget for redecoration, flooring where required and a new kitchen - it may also be worth looking at using some of the the large kitchen to allow a second w/c, given with 4 bedrooms it will appeal to larger families

Based on paying the £89,950 (which you probably won't) and a budget of £15k for renovations, when it is delivered as a high quality family home you'd realistically achieve £595pcm - based on this it will return 6.8% Gross Yield

Admittedly this is not the best Yield in town, but the area and property suggest this will attract long term tenants, which must be borne in mind, as does the fact you'll be adding in some Capital Growth at the start with the improvements

Click here for details https://www.onthemarket.com/details/1595090

Call me if you'd like to discuss this or any aspect of property investment in Sunderland - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com 

The Daily Telegraph Reveals the UK's BTL Hotspots for 2015...Is Sunderland On The List?

The eagerly awaited Daily Telegraph Top 10 BTL Hotspots is revealed, showing "The best UK towns & cities for landlord investment" based on Annual Yield calculations

Here's the table: 

Location	% of housing stock privately rented	Average house price	Average annual rent	Rental yield
Manchester	26.85%	£108,870	£8,628	7.98%
Kingston upon Hull	19.02%	£69,135	£5,400	7.81%
Blackpool	24.16%	£79,654	£5,856	7.35%
Forest Heath	21.80%	£171,322	£12,432	7.26%
Coventry	19.02%	£116,946	£8,424	7.20%
Southampton	23.42%	£151,415	£10,800	7.13%
Nottingham	21.64%	£89,312	£6,288	7.04%
Liverpool	21.75%	£90,426	£5,928	6.56%
Cardiff	20.32%	£150,892	£9,624	6.38%
Portsmouth	22.28%	£155,696	£9,900	6.36%

Click here for the full article, it's worth a read http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11633681/Buy-to-let-hotspots-for-2015-revealed.html?WT.mc_id=e_DM22265&WT.tsrc=email&etype=Edi_Pfi_New&utm_source=email&utm_medium=Edi_Pfi_New_2015_06_03&utm_campaign=DM22265 

Regular readers of this blog may raise an eyebrow about the lack of any North East cities and given what we know about the potential returns in the City, the lack Sunderland in particular

Whilst this blog is full of properties that will deliver far better returns than the 6% - 7% Gross Yield shown in many of the Towns & Cities above, ultimately Sunderland is not on the list because, taking all of the investment properties in the City as a whole the returns are going to be generally lower 

This backs up what I've consistently advised - that to outperform the average returns you really need to be well informed about what to buy & where to buy (and what not to buy)

If you'd like to have a chat about any aspects of property investment in Sunderland, to ensure that you do get the very best possible returns, please call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Sunderland Rental Stats May 2015 - Increased Supply & Reduced Demand

Last month was an odd month, I don't suppose having the General Election helped much but we did get a general feeling that whilst the supply of properties coming onto the market continued to increase following the usual seasonal lull in the first quarter of 2015, there was a distinct lack of tenants out there!

As always, the stats I've used are pulled from Rightmove data & given Rightmove is the most popular site, whilst this doesn't include Zoopla, OnTheMarket etc it would be fair to expect Rightmove trends to reflect the wider market

On first glance they do tend to back up our anecdotal observations

Looking first at the supply of properties onto the market, when compared to March data (sorry, I didn't get round to doing the April figures, promise it won't happen again...) there is a 17% overall increase of available properties 

This is very much to be expected, every year we see a significant increase in properties coming onto the market post-Easter

Looking at each area in turn, SR1 is pretty much exactly the same as in March, and continues to show the often mentioned over-supply (versus our expected 5% of all rental properties being on the market at any given time)

The SR2 postcode goes from (an unusual) situation of shortfall in March to the more normal & expected slight oversupply again in May

Increases in the number of available properties in SR3, SR4 and SR5 in the month of May reduce the shortfall but aren't enough to exceed the expected 5% of all rental property being available - good news for Landlords with properties in those areas as it suggests tenants will again be fighting to get a decent property 

The area showing the largest reduction in available property is SR6, with a 30% reduction vs March 2015

Overall, taking Sunderland as a whole we have a situation of overall shortfall, with 4.4% of all rental properties being on the market in May (when you'd expect there to be 5%), however this is moving in the right direction from 3.6% in March

Turning our attention to tenant demand, as I mentioned when I first analysed this earlier in the year it's not an exact science as whilst Rightmove allows analysis of tenant searches to be further broken down by named area, it doesn't do so on a postcode basis, so the following table isn't going to exactly match the postcodes on the Supply table above, but it should be pretty close...

This month I'm just going to concentrate on the 'by area' searches, I can look at the searches by property type, price band etc another time

Overall, 'by area' tenant searches were down 12% vs March - if I'm honest I would have expected the drop to have been a bigger one

Of most concern is that whilst the number of available properties in SR2 increased by 41% against March, tenant searches for properties in this area decreased by nearly 18%, so whilst this isn't the largest drop by area (searches in SR6 fell by 20%) it shows the greatest discrepancy between supply and demand

The other key stat to pull out (and it reaffirms my consistent recommendation to look to this area due to the demand from Good Tenants) is that the only area bucking the trend and showing an increase in tenant searches vs. March is the SR5 area that includes Downhill, Town End Farm, Redhouse & Hylton Castle

I'm pleased to say the stats back up our general anecdotal observations about how the market 'felt' to us in May 

With this in mind, the good news is that in the past couple of week we've noticed a sharp increase in the number of tenant enquiries and even more pleasing is that they all seem to be serious, willing to view and committ rather than just being the time wasting 'tyre-kickers' which you can get from time to time (especially in the quieter months) - we'll look at the June stats next month to see if they back up our observations

Call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com to what this means for your property investment in Sunderland or to have a free, no obligation chat about any aspect of the Sunderland property market

Two Bedroom Downhill End Terrace With Garage (7.6% Gross Yield)

This two bedroom end terrace is unusual for this type of Downhill property as it comes with a garage - this will make it attractive to a range of tenants

It looks to be in pretty good condition, with a decent kitchen and OK bathroom, only requiring a lick of paint and potentially some new carpets to get it to a condition to attract a Good Tenant

Based on paying the 'Offers Over' £75,000 and achieving £475pcm it will return 7.6% Gross Yield 

Click here for details https://www.onthemarket.com/details/1456479

Call me if you'd like to discuss this property or any aspect of property investment in Sunderland - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com

Bargain "Needs Work" Town End Farm 3 Bed Semi (7.7% Gross Yield)

This 3 bedroom semi in the popular Town End Farm estate has clearly had an old person living there so it needs a full refurb job (redecoration throughout, new flooring, new kitchen, new bathroom) but once done will be very popular and will deliver a great return

An investor asked me yesterday which area in Sunderland I'd go for if I had a spare £100k to invest and without hesitation I said Town End Farm - the properties are more modern than some of the other ex-council areas in SR5, the area attracts working tenants who stay put and you can get far more for your money than south of the river

It's being advertised at 'Offers Over' £70,000 but I'd not suggest paying a penny more than this...pay the asking price, spend £15k on doing it up and you'll achieve 7.7% Gross Yield based on a realistic £550pcm rent (given it will be like a brand new, modern home inside)

Click here for details https://www.onthemarket.com/details/1371908

Call me if you'd like to discuss this property or any aspect of property investment in Sunderland - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com

'Ready to Let' 3 Bedroom Farringdon Mid Terrace (7.5% Gross Yield)

Regular blog readers will know I'm a fan of 3 bedroom properties and a fan of Farringdon, so this one is certainly worth a look!

It looks to be in a great condition, so you don't need to budget for any major work on top of the £87,500 asking price

Pay this and get £550pcm rent and you'll return a healthy 7.5% Gross Yield...but furthermore given the property and area you're likely to attract long term tenants

Click here for details https://www.onthemarket.com/details/1598186

Call me if you'd like to discuss this or any aspect of property investment in Sunderland - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com