Great Investment 6% Yield

Elms Price & Co have this two bedroom first floor maisonette on the market for £125,000. Situated in Connaught Court which is just off of Hythe Hill this is in an ideal location as it is walking distance to the town centre and the Hythe train station. 

This property would let for £625pcm and if purchased at the asking price then would achieve a return of 6%. This is a good return and the property would provide a great long term investment. 

Have a look at the pictures by following the link below.

http://www.rightmove.co.uk/property-for-sale/property-47784415.html

Great Investment ... 6.25% Yield!

Palmer and Partners have just listed this 2 bedroom terrace house situated on barrack street within the popular New Town Area. Close to the town centre and town station this would make an ideal buy to let. It also benefits from a private enclosed rear garden. 

In the current market this property would let for £625pcm and at the asking price of just £119,995 this provides a return of 6.25%. 

Have a look at the photos by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-35197605.html

The perfect Investment ... 5.78% Yield

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Boydens have this 2 bedroom second floor flat for sale in Meyrick Crescent. Just a short walk away from both the town centre and town station the property also benefits from off road parking and a large open plan kitchen living area. The master bedroom has french doors leading to a large balcony overlooking a communal area. 

This property would make a great investment and would have no problems in letting. It could achieve £650pcm and if purchased at the asking price of £135,000 it would achieve a return of 5.78%. 

Have a look at the internal photos by following the link below.

http://www.rightmove.co.uk/property-for-sale/property-31339539.html

Fewer people are moving house in Colchester

Well the dust has settled and the General Election seems a distant memory, we can get back to a more normal property market, or that is what the London based ‘Fleet Street’ journalists would lead you to believe.  You see I have been talking to many fellow property professionals in Colchester (solicitors, conveyancers and one the best sources of info – the chap who puts all the estate agent and letting boards up in Colchester, and all of them, every last one of them told me they didn’t see any change over April in business, compared to any other month on the lead up to the Election itself.

I am now of the opinion that maybe in the upmarket areas of Mayfair and Chelsea, the market went into spasm with the prospect of a Labour/SNP pact with their Mansion Tax for properties over £2,000,000, but in little old Colchester and the surrounding villages, there has only been four properties sold above £2,000,000 mark in the last 5 years.   

In a nutshell, the General Election in Colchester didn’t really have any impact on people’s confidence to buy property.  As I write this article, of 532 properties that have come on to the market in Colchester  since the 2^nd of April, 79 of them have a buyer and are sold subject to contract, that’s nearly one in six (14.85% to be precise).

I think that things are starting to change in the way people in Colchester (in fact the whole of the country as I talk to other agents around the UK) buy and sell property.  Back in the 1970’s, 80’s and 90’s, the norm was to buy a terraced house as soon as you left home and do it up.  Meanwhile, property prices had gone up, so you traded up to a 2 bed semi, then a 3 bed semi and repeated the process, until you found yourself in a large 4 bed detached house with a large mortgage. 

Looking into this a little deeper like I have said in previous articles Colchester people’s attitude to homeownership itself has changed over the last ten years.  The pressure for youngsters to buy when young has gone as renting, not buying, is considered the norm for 20 something’s. This isn’t just a Colchester thing, but, a national thing, as I have noticed that people buy property by trading up (or down) because they need to, not because ‘it’s what people do’.  This does means there are a lot less properties on the market compared to the last decade.

A by-product of less people moving is less people selling their property. My research shows there are a lot fewer properties each month selling in Colchester compared to the last decade.  For example, in February 2015, only 151 properties were sold in Colchester. Compare this to February 2002, and 224 properties sold and the same month in 2004, 263 properties.  I repeated the exercise on different sets of years, (comparing the same month to allow for seasonal variations) and the results were identical if not greater.  So what does this all mean?  Demand for Colchester property isn’t flying away, but with fewer properties for sale, it means property prices are proving reasonably stable too. Stable, consistent and steady growth of property values in Colchester, year on year, without the massive peaks and troughs we saw in the late 1980’s and mid/late2000’s might just be the thing that the Colchester property market needs in the long term.

Great Buy to let ... 5.64% yield

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Temme English have this 2 bedroom house for sale  in the sought after location of Old Heath Road. This property benefits form a huge garden and would make an ideal family home. This property would let for £775pcm and if purchased at asking price of £164,960 would achieve a return of 5.64%. 

This would make an ideal long term investment. Have a look at the internal photos by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-52897292.html

Ready made Buy to Let...5.71% yield!

Essex Country and village homes have this ready made let on the market for £115,500. Being sold with a tenant in situ until February 2016 this property is located in the south of Colchester. This one bedroom second floor apartment benefits from a garage, allocated parking, double glazing and is being sold on a part furnished basis.

The property is currently let for £550pcm and if purchased at asking price would achieve a return of 5.71%, this would make for a great investment. 

Have a look at the internal photos by following the link below.

http://www.rightmove.co.uk/property-for-sale/property-52782404.html?premiumA=true 

Colchester Buy To Let – Should you look further afield?

I was at a recent business networking event in Colchester, when a landlord (who it transpired had a couple of Buy to let properties) bent my ear on where the next hot spot town or city is to invest his money in and where the best rental yields are. Now it can be tempting to just look at Colchester when growing a buy to let property portfolio, but there can be big differences in the amount of rental income you receive and how much your property will appreciate by considering other locations in the country.

Now regular readers of my articles of the Colchester Property Blog know of my love of the ‘buy to let seesaw’. On one side of the seesaw is yield and the other capital growth. Landlords should be looking for a high rental yield so that they can comfortably cover any mortgage payments and make some profit from the income return, but you also want the property to rise in value over time so you can get some capital growth when you come to sell. However, high yielding property in say such areas as Greenstead and Highwoods in Colchester, (so the seesaw arm with yield on it goes up on one side), will suffer from low capital growth (so the other arm with capital growth on the seesaw goes down).  The relationship works in reverse as well, so in such upmarket areas as Lexden, properties offer good capital growth, but at the expense of a decent yield.  

The North East and North West of the UK are landlord magnets for great yields. The average yield in Colchester today is 5.86%, which when you compare with say Hartlepool in the North East, which achieves 7.73% or  9.43% in the Anfield area of Liverpool, doesn’t look too healthy. Now of course, these are only averages and some of my Colchester landlords are achieving 7% to 8% on some of their Colchester properties, but at the expense of capital growth. Anyway, after wasting a tank full of petrol up the A1 to Teeside or the M1/M6 to the Home of the ‘The Reds’,  that Liverpool property, would have dropped in value by 2.2% in the last 12 months and the Hartlepool property would have dropped by 1.4%.

When you compare the long term house price growth, it gets even worse. Looking at the graph, Since 1995, property values in Colchester have risen by 225.66%,compared with Hartlepool at 21.02% and Liverpool  at 90.11% – it just shows you shouldn’t always chase the yield because of the poor increases in property values in those two places. As I always like to explain to landlords when they either email me, pick up the phone or pop into my offices for a coffee (both my own and even landlords who use other agents (you are all welcome at ours), together with soon to be FTL’s (first time landlords)), a decent yield is important, but when you come to sell your buy to let property it would also be nice to make a decent profit.

At the end of the day, as a Colchester landlord, you want to be making gains from both your rent and house price growth, particularly when you want to sell, because when combined, the rental yield and capital growth, that gives you the real return on your investment. 

Great Buy to let ... 6.53% Yield

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This one bedroom apartment is on the market for £96,500 with Temme English. Located in the East of Colchetser the property benefits from a very spacious lounge dining area, an allocated parking space plus visitor spaces and is being sold with no chain. 

This would make an ideal investment and due to its location would make it very popular, the property would easily let for £525pcm and if purchased at asking price would achieve a return 6.53%. 

I think this will be very popular with investors, have a look at the photos on Rightmove by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-52789130.html

Great Investment ... 6.07%

More Estate Agents have this two bedroom property on the market for £128,500. Situated on George Williams Way which is within walking distance to the Colchester town station and the town centre. Benefiting from 2 double bedrooms with Juliette balcony's this second floor apartment also has an allocated parking space. 

This property is let for £625pcm at the moment but could easily increase to £650pcm, this would achieve a return of 6.07% if purchased at asking price.

This is a great return and i think this property will be very popular with investors.Have a look at the photos by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-35026434.html 

Great Investment ... 5.81% yield!

Haart have this three bedroom semi detached house for sale located on the East side of Colchester. This is a great family home and it is within close proximity to local schools and amenities. Also a short distance to the hythe station which offers regular trains to Colchester mainline. With spacious bedrooms, a private garden and being sold with no onward chain this would make a great long term buy to let. 

This property would let for £750pcm and if purchased at asking price of £155,000 would achieve a return of 5.81%. 

Have a look at the internal photos on Rightmove by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-34938162.html

Great buy to let ... 5.96% Yield

William H Brown have this 2 double bedroom first floor apartment for sale situated in the North of Colchester. Within close proximity to the Colchester mainline station and easy access to the A12 this would make a great investment. 

This property would let for £695pcm and at the asking price of £139,950 would achieve a return of 5.96%. This would make a great long term investment. 

Have a look at the photos on Rightmove by following the link below.

http://www.rightmove.co.uk/property-for-sale/property-34961100.html

Colchester Property Market – Post Election Blues?

With the election now over and the stability of Downing Street secure, with David Cameron and his Blue Tories as the largest party in Westminster, in Colchester (as in the rest of the UK) average wages are beginning to grow faster than inflation. This is good news for the Colchester housing market, as some buyers may be willing or able to pay higher prices given the more certain political outlook and attractive inexpensive mortgage rates. However, sellers who think they have the upper hand due to the lack of property for sale should be aware that we should start to see an increase in the number of people putting their properties on to the market in Colchester giving buyers some extra negotiating power.

At the last election in May 2010, there were 1,090 properties for sale in Colchester and by October 2010, this had risen to 1,520, an impressive rise of 39% in five months. An increase in the supply of properties coming on to the market could tip the balance in the demand and supply economics seesaw, thus potentially denting prices. However, as most sellers are buyers and confidence is high, this means there will be good levels of property and buyers, well into the summer, as demand will continue to slightly outstrip supply.

Just before we leave the run up to the election, it is important to consider what the uncertainty in April did to the Colchester property market. I mentioned a few weeks ago that property values (ie what properties were actually selling for) had risen by 0.5% in March 2015. Now new data has been released from Rightmove about April’s asking prices of property in Colchester. It shows that pre-election nerves finally came home to roost in the final weeks of electioneering, with the average price of property coming to market only increasing by a very modest 1.4% (April is normally one of the best months of the year for house price growth).

I am sure our local MP, Will Quince, would agree that the biggest issue is the lack of new properties being built in Colchester. The Conservative manifesto pledged to build 200,000 discounted starter homes for first-time buyers in the next five years. For Colchester to gets its share, that would mean only 82 such properties being built in Colchester each year for the next five years, not much when you consider there are 45,489 properties in Colchester.

Housing is not a big issue for Conservative voters and because London is an increasingly Labour city where the biggest housing issues are found by a country mile, so will it remain on the ‘to do list’ but won’t get recognition it deserves. Until another political party gets back into power, nothing will seismically change in the property market, thus demand for housing will continue to outstrip supply, meaning property values will increase (good news for landlords). However, as rents tend to go up and down with tenant wages, in the long term, rents are still 0.71% lower than they were in 2008 (good news for tenants)... with renting everyone wins! 

Great buy to let ... 6% yield!

Haart have this two bedroom first floor apartment on the market for £125,000. Located in the south west of Colchester and benefiting from allocated parking and communal gardens this would make a great investment. 

This property would easily let for £625pcm and would make a brilliant long term investment as the south west of Colchester is becoming an increasingly popular place to live. If purchased at asking price this would achieve a return of 6%. 

Have a look at the photos on Rightmove by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-34938120.html

Great Investment ... 6.06% yield

More Estate Agents have this 1 bedroom flat for sale at the asking price of £94,995. Situated in the popular area of Highwoods and within close proximity to local amenities and the A12 this would make a great investment. 

This property would let for £480pcm and if purchased at asking price this would achieve a return of 6.06%. This would be an ideal long term investment. 

Have a look at the internal photos on Rightmove by clicking on the link below.

http://www.rightmove.co.uk/property-for-sale/property-34827456.html

Great Investment ... 6.24% Yield

William H Brown have this 2 bedroom apartment to offer in the sought after area of Highwoods. With allocated parking and within close proximity to local schools, easy A12 access and local shops. I think this would be a great investment property and would have no trouble in letting quickly.

If purchased at asking price of £125,000 and let for £625pcm this would achieve a return of 6.24%. This is a great return and would be a brilliant long term investment. 

Have a look at the internal photos on Rightmove by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-34903650.html

Property Values rise by 0.5% in Colchester

Property values in Colchester rose by only 0.5% in March. This follows several months of sluggish activity in the Colchester property market in the run up to the Election, putting the average price of a property in Colchester at £251,800, 9.2% higher than in March 2014.

Interestingly, the Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have reported seeing a fall in mortgage lending and enquiries from prospective home buyers. This is important because it comes amid an overall fall in housing market activity in Colchester. Data from the Land Registry said completed house sales in Colchester in the three months to January 2015, (the most up-to-date figures available) fell by 5.32% compared to the same three month period up to January 2014.

However, I believe that the slowdown in property sales in Colchester is supporting Colchester property values, as there is a shortage of houses coming onto the market. Even though in the whole of the first Quarter of 2015, Colchester property value increases may seem subdued when compared to 2014, let us remember, property values are still rising well above the level of inflation. 

As I have said many times before, the population in Colchester is growing at a much higher rate than the number of properties being built. This increasing demand for a roof over people’s head, which is outpacing the supply of new houses being built in Colchester, is creating a severe imbalance in the Colchester (in fact the whole of UK’s) housing market, thus making home ownership an ever increasingly distant dream for many of Colchester’s potential first time buyers.

In fact, I still maintain the view that house prices are likely to rise by around 3 to 5% in Colchester in 2015, even after taking into account this blip at start of the year. The reason being is that the rise reflects both strong economic conditions and steady market conditions with (and this is the most important factor) very low numbers of properties on the market. 

Many Buy to Let landlords know that investing in the Colchester property market is a long-term strategy of 10, 20 even 30 years. Governments come and go, but unless Colchester Borough Council start to build hundreds of new properties a year to make up for the shocking lack of supply, Colchester people will always want a roof over their head, and irrespective of which party is in power, if there aren’t any council houses and they can’t (or are unable to buy), a demand for rental properties will always remain.

As my existing Colchester landlord clients will testify, whether you manage your property yourself, or another Colchester agent manages your properties, everyone is always made to feel welcome when they pop in for a coffee at our offices in Colchester to discuss anything to do with the Colchester property market, how Colchester compares with its closest rival towns. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion.

Brilliant Investment ... 5.6% Yield

More Estate Agents have this great one bedroom ground floor maisonette for sale at £119,995. Benefiting from double glazing, a garden and an allocated parking space, also due to its location situated within close proximity to the town centre and Colchester mainline train station it would make an attractive rental property. 

This would make a great long term investment and if purchased at asking price and let for £560pcm would achieve a return of 5.6%. 

Have a look at the internal photos on Rightmove by following the link below. 

http://www.rightmove.co.uk/property-for-sale/property-34853697.html