LEAMINGTON SPA FANTASTIC PROPERTY FOR A BUY TO LET

Have a look at the property with this link      Click here for the Details 

The Leamington Spa property market still never ceases to amaze me, this morning I have had four professional people in my office looking for Rentals and currently staying in Hotels !!!

Big Shout out to Landlords looking to extend their portfolios have a look at this. These location is fantastic for town it is currently on the market with EHB. We could be expecting rentals of upwards  £1100 – £1200 approx pcm. So if we base our sums on the max figures, you would still walk away with a 5.5% yield, which in this market is typical in our area. However Capital Gain here would be fantastic and worth keeping the property for a few years
If you would like any more advice on where (or not) to buy, just drop me a line on sean.driscoll@martinco.com  

FABULOUS BUY TO LET PROPERTY ON THE MARKET

http://www.rightmove.co.uk/property-for-sale/property-48543014.html?premiumA=true



This apartment caught my eye this morning whilst I was looking reviewing Leamington Spa property Market. These Apartments are a very good size and always rent really easily.
It is currently on the market with Knight & Rennie for £250,00. We have several rentals on Lucas Court ranging from Medium sized two Beds at £995pcm up to the larger two beds at 1175 pcm. So if we base our sums on the max figures, you would still walk away with a 5.6% yield, which in this market is typical in our area. However Capital Gain here would be fantastic and worth keeping the property for a few years
If you would like any more advice on where (or not) to buy, just drop me a line on sean.driscoll@martinco.com

Leamington Spa Property market: South of River outperforms the North by 22%

Following a discussion with a local landlord who lives in the Myton Road area, between Leamington and Warwick, just near St. Nicholas Park, we got chatting about the different sides of the river in Leamington and how it affected the  property market. Interestingly, he had a couple of properties in both areas and wanted some advice on where to buy next. I did a comparison between North of the River and South of the River, and quite surprisingly the property market South of the River Leam had outperformed the North market by 22%!

South of the river's property market - 22% better than the North's

The average price of property South of the River is £215,700. When you consider the rents that are achieved South of the River are £978 per month, this gives us a yield (annual growth  or the annual rent from a property reflected as a percentage of the value of the property) of 5.4% per year. 

So is South of the River the best investment? Well, yields North of the river , where the average value of a property is £302,100 and the average rent is £1,110 per month, offer a 22%  lower yield of 4.4% per year (compared to the 5.4% per year in the South), so surely it is the best investment, isn’t it?

This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much the value of the property goes up in the long term. In the last 12 months, property values have only risen on average by 6.7% in the South of the River area, which is very impressive. However, average property values North of the River have risen on average by 8.25% (23% better than the South) in the same time frame. The question that every landlord must ask from their investment is,  do you want capital value or yield? 

I always tell Leamington landlords, capital growth and yield are two phrases that are one and the same with property investment and can have a big impact on the long term results of your property investment. 

 Many investors believe that by chasing high yielding properties they will make a faster profit than waiting for capital growth. The problem with this is that to achieve high yield you usually have to compromise on capital growth. Therefore,  it would seem the most logical solution is to find high a yielding property in a strong capital growth area. Such properties don’t exist (or if they do, I don’t know of them!)

This is because, as I tell my landlords,  there is generally an inverse relationship between yield and capital growth so the higher the yield, the lower the capital growth and the higher the capital growth, the lower the yield. This means property investment becomes all about balancing the scales. 

Whether you are a new landlord or an existing landlord, I don't charge for my advice because if I offer you the best opinion and we build a relationship, then you might (and there is no obligation or expectation to this) just use me to manage those properties and so I have plenty of time to earn money from you by looking after your buy to let property for years to come, a property that we jointly decided met your requirements for the investment .. because that is what it is .. an investment.  So, feel free to pop into our office’s in Leamington Spa for a chat about the property market in our town.

Leamington Spa property values increase by £240.38 per week

Last week, a landlord came in to our office to discuss the rising property values in Leamington Spa. He owns a varied portfolio of rental properties, primarily in Leamington Spa with a couple in Warwick and Coventry, so it is interesting to compare the increase in property values around the area.

Over the last 24 months the average property value in Leamington Spa has risen by nearly £25,000, from £239,850 to £264,500. 

Property values in Leamington Spa have increased by 10.4% in the last 2 years

This is a very reasonable 10.4% increase, which if you look at it on a weekly basis, average property values in Leamington Spa, throughout 2012 and 2013, have increased by an impressive £240.38 per week. When we looked at the values for detached houses in Leamington Spa, this average increase is even greater at £41,100, a rise of £395.62 per week.

When I looked at some of the surrounding towns, even though property values are higher in Warwick, Warwick has had a lower average increase in property values, at around £205.81 per week, whilst Coventry has an even more modest average increase of around £123.31 per week. It is, nonetheless, a rise in average property values to suggest the market is recovering steadily in our area – good news for home owners and landlords alike.

Detached houses in Leamington Spa are on average are £41,100 more expensive than 2 years ago

When considering this landlord’s buy to let portfolio, the rental values have remained fairly stable during the 12 months. They are slowly recovering to the average of around 5 years ago, therefore it could be a good time to invest in the property market in Leamington Spa. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in rental market, please come and see me at our office on Regent Grove near Holly Walk

Coventry vs. Leamington Spa - which has the better property market?

Should you be investing in Coventry or Leamington Spa when it comes to property? 

Well it depends why you want to invest? Is it for yourself to live in? Is for investment? For buy to let? Everyone is different, but as I was chatting to a landlord from Stoneleigh, who popped his head through our door on Regent Grove in the Holly Walk area

Both towns are similar in size and, taking into account the surrounding villages, have similar average property values. The average property value in Coventry is £162,100 and in Leamington Spa is £264,500, whilst the average rents are at £866 per month in Coventry and £1,038 per month in Leamington Spa. 

This gives Coventry  an annual yield / return of 6.4% per year and Leamington Spa 4.7% per year. So surely Coventry is the better better bet if you were buying to rent it out?
This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider.

Over the last five years, property values in Coventry have increased by 13.9% but by an impressive 20.1 % in Leamington Spa.

This is great for those that have already bought a property in Leamington Spa in the last 5 to 10 years. However, its even more interesting to note that even though prices have indeed risen by over 20% in the last 5 years, it hasn't been in a straight line. In fact, on average, even though prices are up by 7.6% since last Spring (2013), they did in fact peak in the Autumn 2013 and in the last 6 month's have dropped slightly by 0.5%  .. maybe a time to buy another?

It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office