WHAT'S LETTING BEST?
We have had a fast and furious start to the year with properties letting quickly at solid rents. We expected the start of the year to be busier than normal due to landlords trying to buy before the stamp duty changes but to be honest, it hasn’t really slowed up since then with more and more people realising property is one of the most profitable and solid investments you can have.
The important questions on investors minds are:
- Where should I buy?
- What type of property should I buy?
- What are the expected returns in these areas?
We can help answer these questions by providing specific examples of houses we have let in what we consider hot or popular areas and point out why they let so easily. This should then help investors make wise choices in sourcing their buy-to-let properties.
Newlands Road, Stirchley- 2 Bedroom refurbished house
Stirchley is an area that is what we class as hot at the moment. Virtually any 2 or 3 bed terraced house (typical of the area) lets on the first viewing with the landlord having at least 2-3 offers to choose from. This particular house was completely refurbished by the landlord to a very high standard including new kitchen, bathroom, plastering, décor and flooring. The house let within a matter of days with the landlord having 6 applications to choose from. In terms of yield- these type of houses generally achieve around 5.5-6% and the capital growth has been very strong in the last 12 months.
This area generally attracts professional couples working in the city centre or the outskirts who are looking to rent at least 1-2 years while they settle in an area.
Sherston Covert, Kings Norton- 3 Bedroom refurbished house
This 3 bedroom house was bought as an investment needing work prior to being advertised. The landlord replaced the bathroom, flooring and re-decorated throughout. Once on the market the property had a huge amount of interest with 3 sets of block viewings in the diary almost immediately. The landlord accepted an offer of the full asking price from a professional couple looking to rent long term. The gross yield (not including money spent on the upgrade) for this property was approximately 7.5%.
Kings Norton seems to be an up and coming area for letting and properties that come on the market get lots of interest. The yields in this area tend to be higher than that of Stirchley and Moseley which are in vogue at the moment and consequently are more expensive to buy. As an investor you may well be able to pick up a cheap property which perhaps needs a little work and achieve a very good yield.
Bluebell Croft, Northfield- 4 bedroom refurbished house
This 4-bedroom house was refurbished following being bought as a first investment property by the landlords. They replaced the kitchen, flooring and re-decorated throughout.
This area of Northfield always proves to be very popular with renters and this house followed suit. As soon as we made it live the phone was ringing and within a few days the landlord had multiple offers to choose from. It’s close to Northfield centre but also just off the A38 leading into Birmingham city centre to the north and M5 to the south.
The gross yield achieved on this house (not taking upgrade work into account) was 7%.
If you are thinking of exploring the buy to let market and would like some guidance, then please contact Laura Fiddes-Baron on 0121 445 7410 or email firstname.lastname@example.org.