28 Nov

North Cantril Avenue, Liverpool, L12 – Over 7.5% yield

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I’ve come across a four bedroom mid town house on North Cantrill Avenue that is new to the market for offers over £85,000.

There are not that many marketing photos available online but I’ve got experience of properties in this road and I know the properties are spacious with rear gardens and a front garden/driveway. Due to the size and location, the houses that I have rented in this avenue always prove very popular with families and we have always achieved a rental income of £650 per month in a short space of time.

This property looks at through it needs some working doing to it to get it in a letable condition but this only seem like cosmetic.

If you could purchase the property for £85,000 and spend £15,000 on improving the property, then this property could work out as a 7.8% gross yield. I do like to be conservative with my figures and this yield could even get over 8% if you can purchase and get the works done at  lower price than I have estimated.

Click here to view the property that is currently up with Springbok Properties

I have not been in to this property so I would advise inspecting this property if you are interested in it. As always, I’m available if you have any questions regarding this property or any other properties that you may have seen in Liverpool. If you would like my advice, then send me the property information (a link to Zoopla or Rightmove) to adamr@liverpoolpropertyblog.com and I’ll reply with my thoughts to it.

I’m always here to help.

24 Nov

Average Rent Paid by Tenants in Liverpool rise to £723 per month

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Back in the Spring, there was a surge in Liverpool landlords buying buy to let property in Liverpool as they tried to beat George Osborne’s new stamp duty changes which kicked in on the 1st April 2016. To give you an idea of the sort of numbers we are talking about, below are the property statistics for sales either side of the deadline in L8.

Jan 2016 – 16 properties sold

Feb 2016 – 11 properties sold

March 2016 – 52 properties sold

April 2016 – 15 properties sold

May 2016 – 16 properties sold

Normally, the number of sales in the Spring months is very similar, irrespective of the month. However, as one can see, this year was a completely different picture as landlords moved their purchases forward to beat the stamp duty increase. You would think that even with a basic knowledge of supply and demand economics, rents would be affected in a downwards direction?

However, there appears to be no apparent effect on the levels of rent being asked in Liverpool – and more importantly achieved – and this direction of rents is not likely to inverse any time soon, particularly as legislation planned for 2017 might reduce rental stock and push property values ever upward. The decline of buy to let mortgage interest tax relief will make some properties lossmaking, forcing landlords to pass on costs to tenants in the form of higher rents just to stay afloat. Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.

.. but it’s not all bad news for tenants. Whilst average rents in Liverpool since 2005 have increased by 13.1%, inflation has been 38.5% over the same time frame, meaning Liverpool tenants are 25.4% better off in real terms when it comes to their rent (which is a sizeable chunk of most people’s monthly household budgets)

Year Average Rent in Liverpool per month
2005 639
2006 651
2007 669
2008 680
2009 690
2010 691
2011 700
2012 706
2013 708
2014 711
2015 716
2016 723

average-rent-paid-by-tenants-in-liverpool-rise-to-723-per-month-graphI found it particularly interesting looking at the rent rises over the last five years in Liverpool, as it was five years ago we started to see the very early green shoots of growth of the Liverpool economy.  As a whole, following the Credit crunch (2011), rents in Liverpool have risen by an average of 0.7% a year – fascinating don’t you think?

The view I am trying to portray is that while renting is often portrayed as the unfavorable alternative to home ownership, many young Liverpool professionals like renting as it gives them adaptability with their life. Rents will continue to rise which is good news for landlords as buy to let is an investment but, as can be seen from the statistics, tenants have also had a good deal with below inflation increases in rents in the past. It’s a win-win situation for everyone although on a very personal note, it’s imperative in the future that tenants are not thwarted from saving for a deposit by excessive rental hikes – there has to be a balance.

For more thoughts and opinions on the Liverpool Property Market, if you are a Liverpool Homeowner or Liverpool landlord, please visit the Liverpool Property Blog www.liverpoolpropertyblog.com

22 Nov

Property Deal – The Symphony, 2 Stowell Street, Liverpool, L7 7DL – Offering a gross yield of 7%!

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Located in a prime location in Liverpool City Centre! This apartment is a fantastic purchase for a buy to let investor. Located on the first floor of the sought after development The Symphony located opposite the Philharmonic Hall and just a short walk away from Liverpool Institute of Performing Arts and Historic Metropolitan Cathedral.

The development offers a spacious living, with a separate fitted kitchen, large living area and a good size double bedroom. Well presented and currently vacant, the property is ready for a tenant straight away! Located near to Liverpool University and walking distance to the Centre, you will attract professional or student tenants, and with the demand for properties in the area, we would not expect a long vacant period before a tenant would be secured.

One bedroom apartments in the development can achieve anywhere between £650.00 per calendar month and £675.00 per calendar month, that is an annual gross income of £7800 – £8100 per annum, this would give you a gross annual yield between 7% – 7.3%. The property is currently on the market for £110,000.

The property does not come with parking, but with its location being a short walk from bus links and Liverpool’s City Centre which offers train stations including Moorfields, Liverpool Central, and Liverpool Lime Street Station, parking is not needed!

Click Here to view the property

Click Here to view previous sold prices in the development

If you are interested in these properties, please contact me on adamr@liverpoolpropertyblog.com if you need my help, or contact a member of our sales team on 0151 231 1613 (option 1)

22 Nov

Cambridge Road, Seaforth, Liverpool – Potential HMO Opportunity

cambridge-road-seaforth-liverpool-potential-hmo-opportunityAlthough I do not have much experience with Houses of Multiple Occupancy (HMO), I’ve decided to post this property that is available at the upcoming Sutton Kersh Auction on the Thursday 15th December 2016 due to the high amount of investors looking for properties similar to this.

The property is a large semi detached house that is currently divided in to three, two bedroom self contained flats generating an annual income of £14,950. In my experience at auctions, these type of properties tend to be sold for a price that the purchaser will be receiving a 10% yield, so I’d estimate a sale price of around £150,000.

Looking at this property, I feel that this house could easily be converted in to minimum of a 8 bedroom HMO generating an income of over £40,000 per annum.

It would be a big project and would need someone with lots of experience or contacts to do this, but I’m positive that there will be lots of interest in this investment. Click here to view the property.

Once again, if you would like to discuss this property or any of my other posts, then contact me at adamr@liverpoolpropertyblog.com