29 Jan

City Lofts, 1 William Jessop Way, Liverpool, L3

City Lofts - Liverpool Property Blog

City Lofts, 1 William Jessop Way, Liverpool, L3

I’ve spotted this fantastic investment property which is in the beautiful development that is City Lofts on the waterfront. It’s a one bedroom south facing apartment that that has views of the River Mersey and is available for only £95,000.

I love this development due to the location (it’s in the city but close to the waterfront and away from the hussle and bussle that you may get in the heart of the city centre). Although the property is near 10 years old, the concierge and communal areas still look modern, fresh and very clean. The two gentlemen who work the concierge (John and Tony) are friendly, helpful and knowledgeable about the development and the area.

There is no parking available with this apartment but I know that there are spaces available to rent through other residents who do not use there spaces which would help with tenants who have a vehicle and require parking.

These apartments always rent very well and I’ve had plenty of experience of renting and selling at this development and we’ve on average achieved £7,200 per annum but with prices now increasing were have recently achieved £7,500 per annum making this property a 8% gross yield and taking away the annual service charge £1,296 and annual ground rent £250 brings the net yield down to 6%. I’ve offered better returning investments but there is still plenty of capital growth to be achieved with this apartment and that’s why I am showcasing it.

At this low price, this property will not be on the market that long. CLICK HERE to take a look at this great property.

As always, I welcome your comments regarding this property and the blog.

29 Jan

Liverpool Selective License: What? Where? When? Why?

Liverpool Selective License What Where When Why

Liverpool Selective License: What? Where? When? Why?

It’s been over 12 months now since Liverpool City Council introduced the idea of improving the private rented sector within the borough. At the time I felt this was all rushed through by the council with little thought or consultation with landlords, tenants, landlord groups or letting agents. In my opinion this has well and truly been confirmed with almost no communication from the council over 10 months since the license was introduced in April 2015.

It’s only recently that the council has asked license holders for information from them to see if they meet the requirements of the fit and proper test required to hold the license and to this date, I’ve yet to receive confirmation if I meet the requirements.

The reason for my update is that the council (in the background) have been speaking with several companies in relation to becoming a co-regulator (National Approved Lettings Scheme (NALS) and Belvoir, being two of them) and NALS have contacted their members to inform them that they have been successful in this but have yet to confirm what this means for the agents and their landlords.

We are anticipating further news from Liverpool City Council over the next few days regarding the co-regulation and the license. As soon as this is released, then I will update my followers via www.liverpoolpropertyblog.com

Update – 29.01.2016

Since I first wrote this article there has been further information released in relation to who Liverpool City Council have selected to become the co-regulators.

It has been announced that National Approved Lettings Scheme (NALS) and The Association of Residential Lettings Agents (ARLA) have been approved by the council to become the co-regulators. Little information was released on the Liverpool city council’s website and also in the press release that went into the Liverpool Echo. It was announced that if the agent who is a member of either of these schemes would be the license holder then the license fee would be reduced from £400 or £350 (if more than one property licensed) down to £200.

I spoke with ARLA yesterday as I have been a long-standing member to find out what was involved and if there were any stipulations that they required as I thought they may require additional requirements to Liverpool City Councils accreditation scheme Citywide Landlord Accreditation Safety Scheme (CLASS). Although not many people in the association where aware of the agreements with the Liverpool city council (due to it being very early days) it was confirmed that unlike CLASS, ARLA do not require a valid electric certificate to be in place to receive the reduced license fee of £200.

As Belvoir Liverpool West Derby and Liverpool Central have been long standing members of ARLA, then for landlords who have requested that we become the license holder on their behalf, will receive the highest discounted rate available.

I will be keeping a close eye on this and will endeavor to keep everyone updated via www.liverpoolpropertyblog.com

28 Jan

Doom and Gloom for Liverpool Property Market?

Doom and Gloom for Liverpool Property Market

One of my landlords rang me last week from Liverpool One, after he had spoken to a friend of his. Over Christmas, they were discussing the Liverpool property market and neither of them could make their mind up if it was time to either sell or buy property. If you read the newspapers and the landlord forums on the internet, there is a good slice of doom and gloom, especially with changes in the taxation towards landlords, new legislation on checking tenants and the general uncertainty in the world economic situation.

I would admit, there are certain landlords in Liverpool who have over exposed themselves in the last few years with high percentage loan to value mortgages. Those mortgages, with their current (yet artificially low) interest rates, will start to suffer, as their modest monthly positive cash flow/profit, i.e. income (rent) less costs (mortgage, fees, tax), will become negative when the tax and mortgage rates rise throughout 2017 and beyond.

It appears to me these landlords seem to have treated the Liverpool Buy to Let market as a sure bet and have not approached this as a business and, as a result, they will suffer as they thought “Buy a house – rent it out so it covers the mortgage and make a few quid on top”. These are the people who will be thinking twice. I see opportunity everywhere and won’t be stopping, I’m here to stay. It’s going to be an exciting new year.

Gone are the days when you could buy any old house in Liverpool and it would make money. Yes, in the past, anything in Liverpool that had four walls and a roof would make you money because since WW2, property prices doubled every seven years … it was like printing money – but not anymore.

True, since January 1997, the average price paid for a Liverpool flat/apartment has risen from £39,667 to today’s current average of £104,837 in the city, an impressive rise of 164% and terraced/town house have risen in the same time frame, from £30,576 to £94,913, an even better rise of 210%. However, look back to 2005, and in that year, the average flat was selling for £135,769, meaning our Liverpool landlord would have seen a modest drop of 23% and the terraced owner would have seen an increase of 24%, as they were selling for on average £76,576 … not bad … until you consider inflation.

Since 2005, then inflation, i.e. the cost of living, has increased by 33.4%. That means to retain its value, Liverpool terraced property bought for £76,576 in 2005 needs to be worth £102,128 today. Therefore, our landlord has seen the ‘real’ value of his property decrease by 9.4% (i.e. 24% less 33.4% inflation).

The reality is, since around the early 2000’s we haven’t seen anything like the capital growth in property we have seen in the past and it’s not predicted to grow at the rates it has previously done either. So it is high time anyone considering investing in property stopped believing the hype and did some serious research using independent investment expertise. You can still make money by buying the right Liverpool property at the right price and finding the right tenant. Think about it, properties in real terms are 9.4% lower than ten years ago, so investing in Liverpool property is not only about capital growth, but also about the yield (the return from the rent). It’s also about having a balanced property portfolio that will match what you want from your investment – and what is a ‘balanced property portfolio’? Well we discuss such matters on the Liverpool Property Blog … if you haven’t been, then it might be worth a few minutes of your time? www.liverpoolpropertyblog.com

26 Jan

11.5% Yield & Equity – Antrim Street, Liverpool, L13

Antrim Street - Reeds Rains

Antrim Street, Liverpool, L13

When searching for properties I’m always trying to offer diverse properties to the investor who read this blog. In this situation I’ve come across a property that needs lots of renovation work but with the right knowledge and expertise there is definitely money to be made in this property either long-term or short-term.

It’s a three bedroom mid/end Terrace (due to the entry that runs to the side of the property) that is in need of modernisation including windows, doors, damp course and possible new roof. The property is currently available for £39,950 that was reduced yesterday and has only been on the market since the start of January.

I actually own a property in the next road and I have long standing tenants paying £575 per month rent in a similar style house but in a far better condition. I’m sure that if an investor purchased this property and spent £20,000 that they could turn this tired, run down property back in to a beautiful family home, not only would they have instant equity in the property, then they could be achieving a gross rental yield of 11.5%.

I’ve not actually been to view the property so my recommendations of the works needed would need to be confirmed buy an experienced builder.

Click here to view the property in question that is available through Reeds Rains in West Derby.