21 Sep

Slowing Liverpool Property Market? Yes and No!

My thoughts to the landlords and homeowners of Liverpool…

The tightrope of being a Liverpool buy-to-let landlord is a balancing act many do well at. Talking to several Liverpool landlords, they are very conscious of their tenants’ capacity and ability to pay the rent and their own need to raise rents on their rental properties (as Government figure shows ‘real pay’ has dropped 1% in the last six months). Evidence does suggest many landlords feel more assured than they were in the spring about pursuing higher rents on their properties.

During the summer months, historic evidence suggests that the rents new tenants have had to pay on move in have increased. June/July/August is a time when renters like to move, demand surges and the normal supply and demand seesaw mean tenants are normally prepared to pay more to secure the property they want to live in, in the place they want to be. This is particularly good news for Liverpool landlords as average Liverpool rents have been on a downward trend recently. So look at the figures here…

Rents in Liverpool on average for new tenants moving in have risen 1.4% for the month, taking overall annual Liverpool rents 2.3% higher for the year

However, several Liverpool landlords have expressed their apprehensions about a slowing of the housing market in Liverpool. I think this negativity may be exaggerated.

The other side of the coin to property investing is capital values (which will also be of interest to all the homeowners in Liverpool as well as the Liverpool buy-to-let landlords).  I believe the Liverpool property market has been trying to find some level of equilibrium since the New Year.  According to the Land Registry…

Property Values in Liverpool are 3.52% higher than they were 12 months ago, rising by 0.93% last month alone!

The reality is the number of properties that are on the market in Liverpool today have risen, albeit only by 1% since the New Year and that may have an interesting effect on property values. As tenants have had less choice, buyers also have less choice.

Be you a homeowner or landlord, if you are planning to sell your Liverpool property in the short term, it is crucial, even with the slight rise in the number of properties on the market, that you realistically price your property when you bring it to the market … with the increase in choice of properties, the balance of power during negotiation generally sways towards the buyer. Given that everyone now has access to property details, including historic stats for how much property have sold for, they will be more astute during the offer and negotiation stages of a purchase.

However, even with this uplift in the number of properties for sale in Liverpool, property prices will remain stable and strong in the medium to long term. This is because the number of properties on the market today is still way below the peak of summer of 2008, when there were 16,100 properties for sale compared to the current level of 8,255 (if you recall, prices dropped by nearly 20% in Credit Crunch years of ‘08 and ‘09).

Compared to 2008, today’s lower supply of Liverpool properties for sale will keep prices relatively high…and they will continue to stay at these levels for the medium to long term.

Less people are moving than a few years ago, meaning less property is for sale. Fewer properties for sale mean property prices remain relatively high and this is because of a number of underlying reasons. Firstly, buy-to-let landlords tend not sell their properties as often than owner-occupiers, consequently removing the property out of the housing market selling cycle. Secondly, Stamp Duty is much higher compared to 10 years ago (meaning it costs more to move). Next, there is a dearth of local authority rental housing so demand for private rented housing will remain high. Then we have the UK’s maturing owner occupier population, meaning these older people are less likely to move (compared to when they were younger). Another reason is the lack of new homes being built in the country (we need 240k houses a year to be built in the UK and we are currently only building 145k a year!) and finally, the new mortgage rules introduced in 2014 about how much a person can borrow on a mortgage has curtailed demand.

Some final thought’s before I go – to all the Liverpool homeowners that aren’t planning to sell – this talk of price changes is only on paper profit or loss. To those that are moving … most people that sell, are buyers as well, so as you might not get as much for yours, the one you will want to buy won’t be as much, (swings and roundabouts as Mum says!)

To all the Liverpool landlords – keep your eyes peeled – I have a feeling there may be some decent buy-to-let deals to be had in the coming months. One place for such deals, irrespective of which agent is selling it, is my Liverpool Property Blog … www.liverpoolpropertyblog.com

18 Sep

South Cantril Avenue, Liverpool L12 – Gross Yield of between 7% – 8%

I’ve been looking for a good property to purchase that has instant equity as well as offering a good yield but looking at some of my favourite areas, I’m noticing that asking prices are moving up. At the start of the year, there seemed to be a glut of potential investment properties at a reasonable price but these have all been snapped up.

I have noticed a property that I feel would make a good investment property as it will offer a good yield along with attracting a long standing family to the property due to the size, location and garden.

The property is on the market with Keybanks in West Derby and the property itself is a mid terrace property that has been refurbished to a good standard. The benefits of this property are the driveway, UPVC windows, new roof, excellent condition kitchen, great size rear garden, three good size bedrooms.

The property is on the market for an asking price of £100,000, there hasn’t been many property sales recently and the last few sales were around £80,000 back in 2014 and 2013 and both properties needed full refurbishments on them so I do feel the asking price is probably a fair price but as always, I would like to achieve a 10% discount on the asking price. There had been a property sold for £28,000 but this property was never on the market so it would suggest to me that it was a private sale and the property was mortgageable.

I have rented a couple of similar properties and we have always had good interest in them so I would feel you would look to achieve between £6,900 per annum and £7,200 per annum/ for the property giving the property a gross yield of between 7% and 8% for a low hassle investment.

Click Here to View the Property Advert.

Click Here to View the Sold Prices in the Road

There is some great buy to let mortgage deals available and if you have a deposit of 30%, then you can get a 2 year fixed deal for less than 1.5%, this certainly makes up for there not being many bargains on the market.

If you see any other properties that you like the look of, then email them over to me to adamr@liverpoolpropertyblog.com and I will give you my honest and professional opinion on them, I am here to help you invest in my great city of Liverpool.

16 Sep

2 Bedroom Apartment – Alexandra Tower L3 1BD – £180,000 – 5.3% Yield!

I have noticed this beautiful two bedroom property in the all popular development Alexandra Tower!

Alexandra Tower is now a recognizable part of our Liverpool Sky Line due to its impressive height of 290ft and its envious location set right on the edge of the River. With 24 hour concierge, secure entry system, the secure car park and the extremely desirable location, it is easy to see why everyone loves this development so much.

 

This immaculate apartment boasts mouth dropping uninterrupted views from the lounge of the River Mersey, enabling you to watch as the ships sail through the peaceful rhythmic water; and then the bedrooms clearly overlook Liverpool’s iconic Liver Buildings.

 

Just a stone throw away from Liverpool’s business district, this property is ideal for the professional looking to experience City Living at its finest. The property would also attract students, couples, young families, as it has so much to offer every type of tenant!

This property currently has tenants in situ. The current tenants are paying £9,600; and depending on the furnishings we could potentially increase this slightly. This rental income is securing an average gross yield of 5.3%. Group this together with the potential of capital growth, and you will see why I have chosen to share this.

I feel this property is a fantastic buy as it carries along a very high potential for capital growth. As our City grows, more developments will appear, causing some to become obstructed, however on the very edge of the River, nothing is ever going to obstruct this property. The attraction of this development is never going to fade, and we are always going to have the interest from tenants.

Click Here to view the property

If you would like any further advice on this property, development or any other properties, then please do not hesitate to contact me on adamr@liverpoolpropertyblog.com

8 Sep

2 Bedroom Duplex Apartment – 135-137 Dale Street – 7.8% Gross Yield!

A two bedroom duplex property on the top floor of 135-137 Dale Street has just come onto the market! The property has a great asking price of £105,000. The property lies in the heart of the business district in Liverpool, however is only minutes away from Liverpool’s iconic Cavern Club, the Metquater, plenty of restaurants, shops, bars and cafes and a short walk away from Liverpool One!

Although there are no pictures of inside the property as of yet, I have actually visited the property myself and the property is very spacious and in good overall condition. The master bedroom is upstairs, and reaches the entire width of the flat.

 

I feel this property would rent out very easily, as properties in the business district always proves popular with tenants. The property allows the convenience of  City living, from a quiet distance.

The apartment could achieve a rental income of £7,800 per annum. This is bringing back a great gross yield of 7.8%, plus brings along a high chance of capital growth as our City continues to grow out so quickly.

 

Click Here to view the property

If you would like any further advice on this property, development or any other properties, then please do not hesitate to contact me on adamr@liverpoolpropertyblog.com