What property NOT to buy in Leamington Spa

When investing in property, it’s easy to get it wrong. Before I was a lettings agent, I bought a new build 1 bed flat because that’s what everyone else seemed to be doing. I still have it – mainly because no one is going to take it off me for the price I paid for it!

You live and learn. But it’s important to remember that you make your money when you BUY a property, not when you sell it. If you buy at the wrong price, it’s more or less impossible to rectify that going forwards unless a rising property market saves you. 

 

 

If you buy sensibly, you can also expect to sell sensibly if you ever need to. Try to avoid:

• Simply overpriced. Once you’ve established you can buy a nice 2 bed property in a given area for £X, don’t pay £X + £5,000 for one because you’re impatient. If you overpay at the point of purchase, you’re playing “catch up” regarding the value of the property from day 1 ....  So DON’T overpay!

• Needs work, and this isn’t reflected in the price. DON’T be put off by properties that need work, as these are often the best buys. But DO ensure this is reflected in the price. If it’s £X for a nice one, its £X minus £5,000 for one that needs a kitchen and bathroom.

• Unrealistic rental price. If you’re buying in an area where flats rent for £550.00, don’t expect yours to rent for £600.00 on the basis that it’s just been painted – expect it to rent for £500.00 if you don’t paint it!

• Lacking key features. If you’re buying in the suburbs to attract the family market, don’t buy the one house on the street that has no garden, or no parking. Families want gardens!

What lets well in Leamington Spa?

I have already said that everything rents. Whilst we can’t predict the future, we can only see the demand for these properties increasing when you consider:

• The population continues to grow, but not enough housing is being built.
• The number of single person households continues to increase, and the number of families occupying 2 houses (due to marital breakdown) increases also.
• The amount of money required to purchase a property is more than many people can afford. This is resulting in an increased demand for ‘family properties’ as people increasingly turn to rental to meet their long term housing needs.

Condition of Property

We mention it again, because it’s important. Tenants would rather live in a well presented shed than a dilapidated palace! This doesn’t mean you have to spend a fortune on improvements, just make sure it’s clean, neutral, and the kitchen and bathroom are modern.

Size of Property

A 4 bed house will rent, but there’s always most demand for smaller units – studio or 1 beds close to town or 2 or 3 bed properties in the suburbs. There’s an increasing demand for 3 bed family properties out of town. People who rent don’t want hassle so are generally more concerned with the practicality and ease of a property, rather than having something they can fall in love with.

 

Price of Property

The bottom end of the market is in particularly high demand. A nice room in a shared house will cost about £400PCM including bills, but some people want their own space and don’t want to share. For that reason, anything you can offer to the market that’s inexpensive (under £400 plus bills or under £500 including bills) will always rent well. It doesn’t matter if it’s tiny as long as it’s self-contained. Landlords who cut larger properties into selfcontained studios do particularly well.

Housing Benefit

There’s massive demand for properties that accept tenants in receipt of benefits, particularly 1 beds and 2 beds. The Local Authority waiting list is currently in the thousands