31 Mar

Westminster Chambers, Crosshall Street, Liverpool, L1 – 8.7% Gross Yield

Crosshall Street

I’ve noticed this great three bedroom duplex apartment located in Crosshall Street, Liverpool City Centre that is available through City Residential at £165,000.

The property is ideal for three tenants sharing the property and I would anticipate a rental income of £1200 for a furnished property and £1050 unfurnished in this development giving this property a gross yield of 8.7% if furnished (I would advise furnishing properties in the City Centre)

The development is located in the heart of Liverpool City Centre and the property comprises of hallway, lounge, kitchen, master bedroom, en-suite, bedroom 2, bedroom 3 and a family bathroom.

Click here to see the property

I’ve not inspected this property and I would also advise finding out the service charge and ground rent that would be due with this property.

Three bedroom properties always rent out well in the City as three people can share and this reduces the costs for them.

If you would like further information on this property or any other properties, then contact me here 

 

29 Mar

8.5% gross yield in Liverpool.

Another great investment opportunity is available in through Belvoir Liverpool Central, this time a property in L8 which is very close to the City Centre. It could be described as a  one bedroom quasi semi. This style of property is not the norm for the area but are attractive to professional tenants. The style is similar to the property I shared earlier, on Chelsea Court which offered a 8.3% yield. (See post here)

Location is key and this property is situated in a desirable area on the outskirts of the City Centre, near the Baltic Triangle which is becoming more and more popular as new bars and restaurants open. The property also benefits from an allocated parking space which I’m sure we all know is like gold dust in some places!

I think this is suited to a first time landlord or experienced investor as it would be low maintenance and has a tenant in situ who is looking after the property well however would be very lettable should the tenant leave. The full details can be seen here.

 

24 Mar

Only 13,524 Council Houses in Liverpool left – opportunity or problem?

Only 13,524 council houses in Liverpool left - opportunity or problem

Only 13,524 Council Houses in Liverpool left – opportunity or problem?

The ‘Right to Buy’ scheme was a policy introduced by Maggie Thatcher in 1980 which gave secure council tenants the legal right to buy the Council home they were living in with huge discounts. The heyday of Council ‘Right To Buys’ was in the 80’s and 90’s, when 1,719,368 homes in the country were sold in this manner between October 1980 and April 1998. However, in 1997, Tony Blair reduced the discount available to tenants of council houses and the numbers of properties being bought under the Right to Buy declined.

So what does this mean for Liverpool homeowners and landlords? Well quite a lot in fact!

Looking at the figures for our local authority, whilst the number of ‘Right to Buys’ have dwindled over the last few years to an average of only 582 ‘Right to Buy’ sales per year, one must look further back in time. Looking at the overall figures, 16,837 Council properties were bought by council tenants in the Liverpool City Council area between 1980 and 1998. Big numbers by any measure and even more important to the whole Liverpool property market (i.e. every Liverpool homeowner, Liverpool landlord and even Liverpool aspiring first time buyers) when you consider these 16,837 properties make up a colossal 13.9% of all the privately owned properties in our area (because in local authority area, there are only 120,531 privately owned properties).

Liverpool first time buyers and landlords can now buy these ex-council properties second hand (or the PC brigade like to call them ‘pre-loved ex–local authority dwellings’) as those original 80’s and 90’s tenants (now homeowners) have more than passed the time of any claw back of the discount they received (council discount was repayable if the first owner sold within a stipulated time period – usually 5 years).

Now let us all be honest, some (not all), but some ex-council properties lack the vital KSA that some landlords crave. The new homes builders know all about KSA (or Kerb-Side-Appeal) as they dress up the exteriors of their new homes to make them more appealing to buyers … and if you don’t believe me … why do Show homes exist? Going on the exterior looks of a modern property might be a theoretically good way of choosing a Liverpool buy-to-let property, but in a challenging market, some Liverpool investors are finding a more no-nonsense down to earth approach brings the largest returns.

Yes, the modern stuff being built in Liverpool is lovely, but too many landlords purchase buy to let property solely based on where they would choose to live themselves, instead of choosing with a business head and choosing where a tenant would want to live … because remember the first rule of buy to let property … you aren’t going to live the property yourself. What an ex-council property lack in terms of KSA, they more than make up for in other ways.  Tenants more worried about how close the property is to a particular school or family members for child care matter to them far more than the look of a property.

Whilst ex-council properties tend to increase in value at a slower rate than more modern properties, that is more than made up in the much higher yields – and those built between the wars or just after are really well built. Tenant demand for such properties is good since Liverpool property values are so expensive, a lot of people can’t get mortgages to buy, so they will reconcile themselves to renting, meaning there is a good demand for that sort of property to rent. Also, the very fact the council were forced to sell these Liverpool properties in the 80’s and 90’s, means that today’s younger generation who would have normally got a council house to live in themselves, now can’t as many were sold ten or twenty years ago.

So to Liverpool landlords I say this … don’t dismiss ex-council houses and apartments – but remember the 1st rule of buy to let (see above). However, those very same Liverpool landlords should go in with their eyes open and take lots of advice. Not all ex-council properties are the same and even though they have good demand and high yields, they can also give you other headaches and issues when it comes to the running of the rental property. One source of advice is the Liverpool Property Blog www.liverpoolpropertyblog.com … that just leaves the 13,524 council houses still owned by the local authority to be sold to their tenants in the coming years!

23 Mar

Quarry Close, Liverpool, L13 – Potential 7.6% Yield

I’m a little bit cautious of this property because there are no photos of it online.

It does have the potential to be a fantastic investment due to the price, location and quality of tenant that it would attract. I have plenty of experience of renting in this road and it’s great road that is tucked away but is also close to Queens Drive as well as the new Aldi and Marks and Spencers being built at the bottom of West Derby Road.

It looks as though there will need to be a lot of work to be done on the property to get it in a rentable condition but anyone looking for a project, then this could be the ideal property.

It’s a three bedroom semi detached house that has a garden, driveway, double glazing and gas central heating. These houses were constructed around the early 80’s so there should be no issues structurally with the property but it will need modernising.

It’s available for £79,950 and if you spend £15,000 in modernising the property then you could achieve a rental income of around £7,200 per annum giving you a gross yield of 7.6%. Previous sales in this road vary from £105,000 in 2015 to £120,000 back in 2007 but with a shortage of properties available, I can see a fully refurbished house achieving around £115,000 on the open market.

Here is a link to the street view Google Maps View of the Street

The property is up with my friends at Northwood in West Derby and although there isn’t much info regarding the property, here are the property details Quarry Close, L13 Property Advert

As always, I welcome your comments on this property or blog.