27 Feb

Isabel Grove, Tuebrook, Liverpool, L13 – Full Refurbishment Needed

This three bedroom mid terrace property is new to the market with Acumen Estates for £55,000 and is need of a full refurbishment.

I’ve always liked this road as all of the houses look well kept and in good condition and this road proves popular with tenants with rents achieving between £550 and £600 per month to good long standing tenants.

If this was purchased for the asking price of £55,000 and you spent between £15,000 and £20,000 on the refurb, then I feel you could achieve the top end of the current market for this road at £90,000. Prior to the credit crunch, houses in this road had achieved over £100,000. Click Here to view the past sale prices in the road.

If you decided to do the works and rent out the property, then you would be achieving a gross yield of over 9% as well as adding capital growth to your investment.

Click Here to view the property.

If you need my advice on this property or any other properties in respect of sales or lettings, then please do not hesitate to contact me via adamr@liverpoolpropertyblog.com

23 Feb

With 105,985 people in Private Rented Properties in Liverpool – Should you still be investing in Liverpool Buy To Let?

If I were a buy to let landlord in Liverpool today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Liverpool property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Liverpool property prices do drop, the downside to that is that first time buyers could be attracted back into the Liverpool property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Liverpool landlord, almost a blessing in disguise.

Liverpool has a population of 535,279, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Liverpool – Accommodation Type and the Number of Occupiers
Owned outright – Liverpool Owned with a mortgage – Liverpool Shared ownership (part owned and part rented) – Liverpool Social rented (aka Council Housing) –  Liverpool Private rented – Liverpool Living rent free – Liverpool
105,511 183,969 2,548 131,924 105,985 5,342
19.7% 34.4% 0.5% 24.6% 19.8% 1.0%

Yields will rise if Liverpool property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Liverpool landlords add to their portfolio. Rental demand in Liverpool is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Liverpool landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s cousin and his partner.  Both are in their mid/late twenties, both have decent jobs in Liverpool and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a late 30’s person, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 19.8% of Liverpool people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Liverpool – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch – there is nothing like bricks and mortar!

For more views and opinions on the Liverpool Property Market – visit the Liverpool Property Market Blog www.liverpoolpropertyblog.com

20 Feb

Lace Street, Liverpool L3 – 3 bedroom apartment – 8.6% Gross Yield

Today I’ve spotted a three bedroom flat that is just on the edge of Liverpool City Centre available for £139,950. The building lies within the John Moores University campus and is close to a number of the main buildings and is less than half a mile to the heart of the city. Three bedroom properties in or around Liveprool City Centre always proof popular with tenants as you can find either 2 or 3 tenants sharing a property bringing down their costs of living in the Centre.

This property is currently let for £1,000 per month so this property currently offers a gross yield of 8.6% if purchased at the asking price but will increase over 9% if you can secure a discount on the asking price. The ground rent is £275 per annum and the service charge is £900 per annum and the lease length is 125 years from 2010. With such a low service charge, then this makes a good investment.

If you would like to look in to this property further, click here to view it. There have not been any three bedroom sold recently but two bedroom apartments have been sold between £100,000 and £125,000 over the past few months. Click here to look at the previous sold prices for this apartment block.

If you would like further information on this property or any properties in Liverpool that you may have seen, then email me on adamr@liverpoolpropertyblog.com just send me a rightmove or zoopla link and I will give you my thoughts regarding the property

16 Feb

3,048 Liverpool Households Occupied by OAP Renters

Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the Country that are occupied by people aged 65 and older, meaning 4.39% of OAP’s are living in private rented property.

It got me thinking two things. How many of these OAP’s have always rented and how many have sold up and become a tenant?  In retirement, selling up could make financial sense to the mature generation in Liverpool, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy to let landlords of Liverpool?

The Prudential published a survey recently that said nearly six out of ten OAP renters had never owned a home.  Two out of ten OAP renters were required to sell up because of debt, just about one in ten OAP renters sold their property to use the money to fund their retirement and the remaining one out ten OAP renters, rented for other reasons.

Funding retirement is important as the life expectancy of someone from Liverpool at age 65 (years) is 17.0 years for males and 19.5 years for females (interesting when compared to the National Average of 18.7 years for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature people of Liverpool.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of Liverpool?  Of the 56,176 households in Liverpool, whose head of the household is 65 or over, not surprisingly 34,622 of households were owned (61.63%) and 16,898 (30.08%) were in social housing.  However, the figure that fascinated me was the 3,048 (5.43%) households that were in privately rented properties.

Anecdotal evidence, by talking to both my team and other Liverpool property professionals is that this figure is rising.  More and more Liverpool OAP’s are selling their large Liverpool homes and renting something more manageable, allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder), invested in plans that produce a decent income and while living the life they want to live.

These Liverpool OAP renters know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being an OAP – the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn’t leave family members panicking to sell the property to fund care-home fees.

Liverpool landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.  Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!