Something to whet the appetite

So, with January as good as over, we have been asked a few times by landlords "How's the letting market started this year?". To which I would have to give a general positive response to. We saw huge demand from tenants straight after new year but this has tailored off a bit towards the end of January. We secured 14 lets this month but have found a couple of properties one would normally expect to go quite quickly stick a bit - often for no particular reason, or perhaps because the decor wasn't quite as good as other properties also on the market at that time. I feel this further underlines the importance of presenting a modern feel throughout, especially in the bathroom and kitchens plus the flooring.
February is looking likely to be a busy month with numerous move ins planed but most of all the "high yielding" student market kicks into full swing. If you have a student property in Guildford do not let you agent advertise it in June, it must be on NOW in order to secure tenancy at the best possible price for you. Speak to us for free advice if you wish!.

Anyway, I wanted to show a couple of potential investment properties that have come onto the market in the last 7 days within the Guildford area. They represent 2 ends of the spectrum.
The first is a 3 bed maisonette in Park Barn. OH NO! I hear you shout! Well, the truth is that this is not for the faint hearted. It is available for £180k and currently has been letting out for £1200pcm. That's a whopping 8.2% yield if purchased for £175k BUT - it is in a poor state of repair and should be freshed up if you want to attract half decent tenants. You will only get £1200 by letting it to students furnished and it will need a lick of paint, perhaps new carpets and even a new bathroom. The truth is, this is never going to be easy to sell on and won't out perform for capital growth due to the area / block of flats it is in, plus you will always be working hard at your tenancy due to the type of tenants. But hey - 8% if you have the stomach and are looking for the monthly yield. However - if you don't set it secured to students you could be facing voids or much lower rent.

The link to rightmove is below
http://tinyurl.com/acblecr



Perhaps for those that want an easier life is the property below. Priced at £242k this 3 bed house would attract a professional couple / family and although not as close to the town centre as you would like (1.5miles to the station) , it ticks a number of boxes to make it an interesting option. Obviously it is under the 250k threshold, it has a secure garden, garage, GCH and double glazed already, and is in Stoughton.
It looks like the flooring needs replacing - I would carpet the upstairs (£4-500max) and then put wood effect laminate downstairs. The bigger job is the kitchen (bathroom seems Ok), which would need modernising (5k?).
I would most definitely want a long tenancy and want to attract tenants that want to stay long - so I would ACCEPT PETS (hence the wood floor). Families with pets treat it as their home and due to other landlords not accepting them they stay longer, get it let, sit back and enjoy an easy tenancy at £1200pcm.
Buy at £235 to reflect the work required. So  nearly 6% if you spent £242k in total.



Link to rightmove:
http://tinyurl.com/ad8xnyk

All photos courtesy of Selling Agents Callards and Gascoigne Pees

A quick update on a lesser spotted item. I haven't seen one of these for while!
OK the rate isn't great at 5.49% but one never gets great rates with higher LTV products.

It looks like 85% LTV mortgages are available again - all heading in the right way as a bit of confidence is obviously returning to the lenders.

The link below the table will take you through to other offers with lower fees but higher deposit.

I think overall, the message is that this is an encouraging move

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives
85%	5.49% Discount	2 Years	2.5%	£130.00	No
85%	5.99% Discount	2 Years	2.5%	£130.00	No

http://www.belvoirlettings.com/btl-mortgages-p1025

Free Buy-toLet advice:

I thought I would start posting the occassional property that is on the sales market and discuss the pros and cons of each as an investment. With Guildford continuing to be seen as a great area to invest with relatively good yields and strong tenant demand, numerous people are looking to invest for the first time (partly due to low interest rates that aren't giving a good savings return but also offer a low repayment on the mortgage).
I would suggest you still speak to us and do your own due dilligence but this is quite a nice flat at £140K which doesn't look like it requires much work.
We currently manage one very similar to this a receive a monthly rent of £780, which based on £140k purchase price is 6.7% return - although it is a leasehold so you should check the ground rent and service charges etc.
Would appeal to a couple that work at the Hospital or Research Park or perhaps a doctor that is on a 1 year secondment to Royal Surrey.

See the full listing from the sales agent on the link below (copy and paste to browser)
http://tinyurl.com/ayggzz4