31 Oct

St. Anne’s Court, L3 3JP – One Bedroom Apartment – 11% Gross Yield!

I have just been scrolling through Rightmove and noticed this one bedroom apartment in St. Anne’s Court. Although I have not had dealings with this development myself, I can imagine it to prove popular with tenants due to its location which is very close to Liverpool City Centre.

The property appears to be spacious, and briefly comprises lounge, kitchen, bedroom, storage cupboard, bathroom. The property has double glazing throughout and benefits from residential parking.

I feel the property could achieve approximately £500 pcm, giving this property a fantastic 11% gross yield based on an offer of asking price! I would expect this property to attract young professionals, young couples or students due to its close proximity to the City Centre, and well-proportioned rooms.

This is currently the only property in the development on the market, however looking back at past sold prices, the property appears to of been priced to sell! The past two properties have sold for £60,000, and then the one before that was a two bedroom which sold for £90,000!

 

Click Here to view the previous sold prices in the development.

 

Click Here to view the property

 

If you more information on this property, please contact me on adamr@liverpoolpropertyblog.com

30 Oct

Tynwald Close, Liverpool, L13 7DS – Potential 9%-10% Gross Yield

 

I’ve had a look through new properties on the market or recently reduced properties to see if I can spot any potential good buys. Although there isn’t too much new stock on the market, I like the look of this property on Tynwald Close, Liverpool, L13 7DS.

The property is a mid terrace three bedroom house that benefits from driveway, kitchen/diner, new shower-room suite, double glazing, central heating and a rear yard. The property is new to the market with an asking price of over £70,000. The property looks in a good condition and would only need some cosmetic work to get it ready to be let out.

If rented out, then I would suggest a rental income of between £550pcm – £565pcm and if the property could be purchased for £70,000 then it would generate a gross yield of between 9% and 10%.

The property is on the market with Springbok, click here to view the property

If you want more information on this property or any other properties, then contact me on adamr@liverpoolpropertyblog.com

26 Oct

Liverpool Wages Outstrip House Price Growth by 19.04% since 2007

 I recently read a report by the Yorkshire Building Society that 54% of the country has seen wages (salaries) rise faster than property prices in the last 10 years. The report said that in the Midlands and North, salaries had outperformed property prices since 2007, whilst in other parts of the UK, especially in the South, the opposite has happened and property prices have outperformed salaries quite noticeably.

As regular readers of my blog know, I always like to find out what has actually happened locally in Liverpool. To talk of North and South is not specific enough for me. Therefore, to start, I looked at what has happened to salaries locally since 2007. Looking at the Office of National Statistics (ONS) data for Liverpool City Council, some interesting figures came out…

 Salaries in Liverpool have risen by 20.81% since 2007 (although it’s been a bit of a rollercoaster ride to get there!) – interesting when you compare that with what has happened to salaries regionally (an increase of 15.77%) and nationally, an increase of 17.61%.

Next, I needed to find what had happened to property prices locally over the same time frame of 2007 and today. Net property values in Liverpool are 1.77% higher than they were in mid 2007 (not forgetting they did dip in 2008 and 2009). Therefore…

Wages in the Liverpool area have increased at a higher rate than property values to the tune of 19.04% … meaning, Liverpool is in line with the regional trend

All this is important, as the relationship between salaries and property values is the basis on how affordable property is to all buyers. It is also vitally relevant for Liverpool landlords, as they need to be aware of this when making their buy-to-let plans for the future. If more Liverpool people are buying, then demand for Liverpool rental properties will drop (and vice versa).

As I have discussed in a few articles in my blog recently, this issue of ‘property-affordability’ is a great bellwether to the future direction of the Liverpool property market. Now of course, it isn’t as simple as comparing salaries and property prices, as that measurement disregards issues such as low mortgage rates and the diminishing proportion of disposable income that is spent on mortgage repayments.

On the face of it, the change between 2007 and 2017 in terms of the ‘property-affordability’ hasn’t been that great. However, look back another 10 years to 1997, and that tells a completely different story. Nationally, the affordability of property more than halved between 1997 and today. In 1997, house prices were on average 3.5 times workers’ annual wages, whereas in 2016 workers could typically expect to spend around 7.7 times annual wages on purchasing a home.

The issue of a lack of homeownership has its roots in the 1980’s and 1990’s. It’s quite hard as a tenant to pay your rent and save money for a deposit simultaneously, meaning for many Liverpool people, home ownership isn’t a realistic goal. Earlier in the year, the Tories released proposals to combat the country’s ‘broken’ housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving bad landlords.

This is all great news for Liverpool tenants and decent law-abiding Liverpool landlords (and indirectly owner occupier homeowners). Whatever has happened to salaries or property prices in Liverpool in the last 10 (or 20) years … the demand for decent high-quality rental property keeps growing. If you want a chat about where the Liverpool property market is going – please read my other blog posts on www.liverpoolpropertyblog.com or drop me note via email, like many Liverpool landlords are doing.

24 Oct

The Reach, Leeds Street, Liverpool, L3 2DB – 2 Bedroom Apartment – 10% Gross Yield!!

 

A two bedroom apartment in the popular development; The Reach, Leeds Street has just been added onto the market! The spacious apartment lies within easy reach of Liverpool’s City Centre and it is only a short distance from Liverpool John Moores University.

The property briefly comprises a well maintained communal area, entrance hall, Open plan living/kitchen area, two bedrooms, a modern bathroom, a handy storage cupboard and a balcony. 

I feel the property could achieve approximately £695 pcm if marketed furnished; giving this property a fantastic 10% gross yield based on an offer of asking price!!  In my experience, properties in this development always prove very popular with a variety of tenants, particularly professional tenants who need easy access to the business district of Liverpool City Centre, or students of one of Liverpool’s many Universities.

There are currently a couple on the market in the development. This property is marketed twice with Andrew Louis and James Kristian. After these two, there is one which went for public auction at the guide price of £85,000, and then it jumps to a one bed at £89,950; which has already sold! Other two bedroom apartments in the development are being marketed between £115,000-£130,000 – so I think it’s safe to say this property is a steal!

Click Here to view other properties in the development which are currently on the market.

I have also had a look at previous sold prices in The Reach, and compared to other two beds in the development, this one appears to be marketed at a very good value. I feel the prices in this development are going to continue to increase in the future in line with the growth of our City as the development is in a location which we would expect to always be sought after. This makes this an excellent rental property, but when the time comes to sell, there is a high potential for capital growth!

Click Here to view the previous sold prices in the development.

 

Click Here to view the property

 

If you more information on this property, please contact me on adamr@liverpoolpropertyblog.com