Brian's Southampton Buy to let deal of the week

4 Bed HMO near Southampton University

4 bed semi detached house less then half a mile from Southampton University with C4 usage. Currently let at £14,350 p.a. until June 2014 ( £69 p.p.p.w ) producing a Gross Yield of 6.8% on an asking price of £210k. 

I feel there is some upside to the rent to circa £75 p.p.p.w £15,600 p.a. which would yield in excess of 7.4%. The property is really well located being close to Portswood High St., a large Sainsbury's store and the City Centre. EPC rating D. Well worth a look.

Southampton Buy to let Rule #4

Rule #4 Condition Is Important
 
As a lettings agent, we’d prefer landlords to give us well presented properties in worse areas, than badly presented properties in good areas. That’s because nice tenants want nice properties, and as Southampton has very few no go areas, people are more likely to be flexible on where they live, as opposed to what they live in. 

As such you should either buy a nice property, or buy a grubby one and make it nice. Don’t buy a grubby one and expect a tenant to take it as it is. Any tenant that does take it probably won’t be that good a tenant.

Southampton Buy to Let Rule #3

Rule # 3 - Keep Your Figures Realistic
People need a lot of money to afford a deposit at the moment, so many are renting instead. This means there’s good demand for rental property, and we lettings agents can rent most things, often for a premium. 

However at some point this will change. As such don’t assume that just because you can currently rent a tatty property, that will always be the case, and don’t assume because some estate agent is promising to get you £x in rental, that it will rent at that price for ever. 

Do your figures on a worst case scenario and you should end up with your expectations being exceeded, not unrealised.

Brian's Southampton Buy to let deal of the week

FIRST TIME BUY 2 LET OR DIVERSIFY YOUR PORTFOLIO

Super top floor studio flat with allocated parking is available on Hill Lane Southampton at £79,000. It measures 260 sq ft and has a well fitted bathroom and kitchen area. It is airy and bright with good decor. The location is excellent being close to the Central Train Station, City Centre, Universities and General Hospital. Tenant demand will be strong and it will achieve at least £475pcm which will give a gross yield of 7.2% before ground rent and service charge.

Southampton property values increase by £225 per week

Last week, a landlord who lives in Chandlers Ford, came in to our office to discuss the rising property values in Southampton. He owns a varied portfolio of rental properties, primarily in Southampton with a couple in Eastleigh and one in Portsmouth, so it is interesting to compare the increase in property values around the area.

Over the last 12 months, average property values in Southampton, have increased by an impressive £225 per week. When I looked at some of the surrounding towns, Eastleigh has had a lower average increase in property values, at around £213 per week, whilst Portsmouth has an even more modest average increase of around £59 per week. It is, nonetheless, a rise in average property values, which suggests the market is recovering steadily in our area – good news for home owners and landlords alike.

When considering this landlord’s buy to let portfolio, the rental values have remained fairly stable during the last 12 months. They are however slowly recovering to the average of around 5 years ago, therefore it could be a good time to invest in the property market in Southampton. If you would like some advice about buying to let, either as a landlord with a portfolio or someone thinking of investing for the first time, please give me a call or come and see me at our offices on London Road in Southampton.

Southampton Buy to let Rule #2

Rule #2 Detach Yourself

YOU will not live in the property you buy. 

As such, whether YOU like it isn’t the primary consideration! 

This is a business transaction, and as such the question is whether it works from a business perspective? A classic example housing estate near Mansell Park – It's not my favorite place, but I've never known a landlord be short of a tenant in there!

Southampton Property Deal of the Week - 7% yield

VERY SMART 3 BED SEMI FOR £147,500 AVAILABLE IN SO19

The Southampton property market has comeback into life over the last 6 months or so and property values in general are moving in the right direction. 

I came across this property yesterday which has only just come on the market. Its a very well presented 3 bed semi in excellent decorative order with many recent upgrades. Advertised at £147,500 it will go for close to its asking price and will rent at £850 pcm, producing a Gross Yield of almost 7%. 

How confident are we of the rental income, well we just let a very similar property on the same road a couple of weeks ago at the £850 level and enquires are still coming in!

Southampton Buy to let Rule #1

Rule #1  Everything Lets

When potential investors come to see us, they are often concerned whether the property they buy will let. They needn’t be – it doesn’t matter if it’s a palace or a flea pit – everything lets, but that’s not a recommendation to buy a flea pit! The question they should be asking is WHO it will let to – a 3 bed in the town centre is far more likely to attract sharers than a family for example. Every now and then a landlord comes in with a property that he’s been unable to let through another agent. 

We know without seeing it that either 

1. it’s badly presented or 
2. he’s overpriced it. 
3. There isn’t usually a 3

Southampton Property Values rise by 5.5% in 2013

Just a little note to say that after carrying out some research on the property market in Southampton over the last 12 months, the average value of a property has risen by around 5.5%, taking the average value of a property from £218,000 to £229,700 in 12 months.

Portsmouth hosue prices in the same time only rose by 2.1%

5:2 to The Saints then?