30 Sep

One Bedroom Apartment – Cable House, 49 Cheapside, L2 2SX – £9,600 Per Annum Rental Income

 

This unique one bedroo m property in one of Liverpool’s most desirable developments has just came onto the market! The property has a fantastic asking price of £145,000, which is a steal for such an exquisite property in this prime location in the heart of the business district in Liverpool.

 

I feel the potential for capital growth in this property will be excellent as the City continues to grow with new business opening constantly!

The property boasts plenty of attractive aspects; such as a large terrace and secure allocated parking, which will always have tenants queuing for a chance to experience this luxurious City living lifestyle.

From looking at the pictures, the property appears to of been exceptionally maintained by its current owners, and a lot of attention to details has been used when decorating the property! The property looks ready to move into, which is ideal for any investor who is wanting a quick rental return!

 

The apartment is expected to achieve £9,600 per annum. This is bringing back an excellent gross yield of around 7%! Both these rental figures, along with the potential for capital growth highlight the fantastic opportunities this property has to offer!

In my experience, properties in this development always prove very popular with tenants and with the prime location in the heart of the business district, the locality of local amenities and ease of transport, and the convenience of secure allocated parking, it is easy to see why! This particular development is just set back from Dale Street where you will find plenty of bars and restaurants. Liverpool One is within walking distance, and Liverpool’s picturesque waterfront is just minutes away.

 

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

28 Sep

Decreasing Numbers of Younger Homeowners in Liverpool

Scott Adams, 36-year-old father of two from Liverpool, was out house hunting. It was a pleasant August Saturday afternoon, and our man cycles along on his bike. He cycles up a street of suburban semis, where he spots a few retired mature neighbours, chatting to each other over the garden fence. He leans his bicycle against a lamppost and launches softly into his property search.

Anyone on the road contemplating moving?” Scott asks, “I am not a landlord or developer, I’m just a Liverpool bloke trying to get out of renting, buy a house, do it up and live in it with my wife and two children

The only way I will leave here is in a box”, answers an 80-something lady, wearing her fading Paisley patterned housecoat from the 1970’s.

I‘ve lived here since before you were born, its lovely up here .. we aren’t moving, are we Doris?” (as her neighbour sagely shook his head at his wife).

Scott, like many Liverpool people born in the late 1970’s to the early 1990’s, is keen to get a slice of prime Liverpool real estate. Yet people like Scott in Generation Y (or the Millennials as some people call them i.e. born between 1977 and 1994 and needing family housing now) are discovering, as each year passes by, they are becoming more neglected and ignored when it comes to moving up the property ladder.

Looking at the graph for the UK as whole …

Over 75 percent of Brits aged 65 and above (the baby boomers) are owner-occupiers, the biggest share since records began and a proportional rise of over 48.3% since the early 1980’s. Looking at those Baby Boomers (the current 65+year olds)  .. and roll the clock back 36 years (to when they were in their 30’s and 40’s and two thirds (65.6%) of them owned their own home.

Whilst today, just under a half of 25 to 49 year olds (47.3%) own their own home.

However, the biggest drop has been in the 18 to 24-year old’s, where homeownership has dropped from a third (32%) in the 1980’s to less than one in ten (8.9%) today. Looking at the Liverpool statistics, the numbers make even more interesting reading.

Government policy contributes to the generational stalemate. Stamp Duty rules prevent older Brits from moving as the price of land and planning rules make it harder to build affordable bungalows that are attractive to members of the older generation who want to move.

The average value of an acre of prime building land in the UK is between £750,000 and £800,000 per acre. Bungalows are the favoured option for the older generation, but the problem is bungalows take up too much land to make them profitable for new homes builders. The housing market is gridlocked with youngsters wanting to get on (then move up) the property ladder whilst the older generation, who want to move from their larger houses to smaller, more modern bungalows, can’t. The problem is – there simply aren’t enough bungalows being built and the high price of land, means they are prohibitive to build.

So, what is my point? Well, all I would say to the homeowners of Liverpool is that one solution could be to start to talk to your local councillors, so they can mould the planners’ thoughts and the local authority thinking in setting land aside for bungalows instead of two up two down starter homes? That would free the impasse at the top of the property ladder (i.e. mature people living in big houses but unable to move anywhere), releasing the middle aged gridlocked people in the ladder to move up, thus releasing more existing starter homes for the younger generation.

… and to you Scott … the wandering new home searcher – if things are going to change, it will be years before they do .. so keep going out and spreading the word of your search for a new home for your family.

25 Sep

Ellerman Road, Liverpool, L3 – Modern Day Auction – Potential Bargain

I’ve noticed more and more agents are now offering a modern day auction, this is also known as a conditional auction, and means that upon the acceptance of an offer or at the close of the auction, the buyer must place a non refundable reservation fee to reserve the property. The buyer is then given 28 days to exchange contracts and a further 28 days to complete the purchase thereafter.

The property that I have noticed is currently available for £95,000, which is a very good price as although some have been purchased for around £110,000, most achieve much more than this. The buying fees to pay to the agent would be £5,000 + vat =£6,000 so if your bid of £95,000 would be accepted, then it would cost you £101,000.

The risk with this is that you must have your finance in place before you commit because if you don’t, then you could lose your buying fee of £6,000.

Overall, if you have cash funds available, then this is a great development and although its a leasehold property, the lease lenghts are very very long.

Click Here to View the Advert

Click Here to View Previous Sold Prices

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