Fantastic Investment Opportunity in Derby

I want to let you know of a fantastic investment opportunity to purchase 10 apartments in Derby. They can be split or can be bought as a whole.

There are 1 bedroom apartments at £79,950 and 2 bedroom apartments available at £89,950. They are situated in Manchester Street/Surrey Street in the Ashbourne Road are of the city.

They are all currently tenanted and are achieving rents for the 1 beds of around £475 - £495 pcm and for the 2 beds, around £575 - £595 pcm.
This represents a potential return of around 7.5% which is excellent.

The Entrance Hallway has useful storage cupboards, wall mounted heater and an entry phone system.
The Living Room has UPVC double glazed French doors which open onto a Juliet balcony, new carpets and curtains.
The Kitchen includes a range of beech style units with roll edge worksurfaces, inset stainless steel sink and drainer, integrated brushed steel oven, hob and extractor, tiled flooring.
Each apartment has a fitted quality shower room with white sink and toilet, chrome fittings and double shower cubicle with power shower.
Electronic gates for secure parking are available on a first come first served basis.
Private intercoms to each apartment. Situated within walking distance of Derby city and within minutes of the A38. Storage heaters throughout and double glazing.

These apartments are a great opportunity to purchase quality buy-to-let properties offering an excellent return on investment.

If you require further information then please email me at simonj@professionalproperties.co.uk or call me on 07977 235545.

Any decent buy-to-let opportunities in Boulton Moor?

A prospective landlord called in to the office last week. He lives in one of those modern 4 bed detached house on the Boulton Moor development, built on the edge of Alvaston on the South East edge of Derby. The whole development was primarily built in the early to mid 1990’s, and offers mostly larger executive detached houses and also modern semis and town houses. Interestingly though, over 71% of property in Boulton Moor is detached, compared to 41% in the South Derbyshire District area. Something that wouldn’t happen today with the price of land (there would be more semis and town houses)!

Anyway, he wants to purchase his first Buy to Let property and has noticed our previous articles, so was interested in getting to know the industry a little bit more. As he has lived in the Boulton Moor area for over 8 years and he felt comfortable investing in there as he knew it well, we started to discuss the property market in this area. Firstly, we found that of the 181 semi-detached and town houses in Boulton Moor, 153 of them have sold and changed hands since 1999 (some up to 4 times!), so obviously a good place to buy and sell in.

Property values in Derby have risen on average by around 118% over the last 14 years, but most semi-detached properties on the Boulton Moor area have beaten that rise, rising on average by 173%. For example, a top of the range two bedroomed semi-detached property on Paddock Close rose by 175%, from £45,000 in 2000 to £123,800 in 2011 – and this is one of many.

With excellent capital growth you would expect yields to be comparatively lower, but most two bedroomed properties on the development can be picked up from £100,000 to £110,000 and could have achievable rents of £500 per month. This means annual yields can be around an attractive 5.7%! Feel free to pop through the door of our offices on St James Street or send me an email to simonj@professionalproperties.co.uk

How can you find a good property deal in Derby?

The subject of a lack of Derby property bargains over the last couple of years has always been near the top of most Derby landlord’s thoughts. I have built up an extensive database of every property sale in Derby since the early 2000’s, so am able to give an objective and unbiased opinion on what (and what doesn't) make a good property deal /investment. Knowing what is and what has happened to the property market in Derby, compared to say Ilkeston, Nottingham or Leicester, enables me to spot any trends or opportunities for buy to let landlords. 

Here are some bargains that I spotted at the time, and now they are completed, wanted to share with you. A lovely 2 bed detached bungalow on Beechford Crescent in Littleover sold in May 2012 for £100,000. Admittedly it did need a little TLC, but just over a year later, the bungalow came back for sale in the Summer just gone and completed in November 2013 for £169,500. If the property investor had instead put the money in the bank, that sort of return would have seen an annual interest rate of 37.4% per annum ... Another I saw a few years back was in 2010 when someone paid £115,000 for one of those nice mature 3 bed semis on Leamington Close. In October 2013, it sold again for £183,000, a rise of 59.1%, not bad when the average in Derby has been 9.3% in the same time frame!

Whether you are a landlord of ours or not, drop by our offices for any advice and opinion on where the bargains are in Derby. I can guide you on what (or not) to buy. I don’t charge for my advice, so I can give an impartial opinion, without any conflict of interest to our landlords. 

Feel free to pop through the door of our offices on St James Street,call me on 07977 235545 or send me an email to simonj@professionalproperties.co.uk.

Allestree property market – good place to invest?

Last week, a couple from the Allestree area of Derby came in to discuss with me, them potentially investing in the Derby property market for Buy to Let for the first time.

As my regular readers will note, one of the most important considerations you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. However, another consideration is location and the type of property you could buy. They live in that nice modern estate built by Millers in 2003/4 on the left hand side of Kedleston Road, just after the Markeaton Lake, and it is one of Derby’s premier modern estates to live on.
With this in mind, they thought they might buy one of those 3 bed detached houses in the Birchover Way development (just across the road from them) The yield which could be achieved from one of those 3 bed detached houses in the Birchover Way area is around 4.5% per year (as they sell for between £210k and £220k and rent between £765 per month and £800 per month). However, I suggested something a little different, a bungalow in the Allestree area?

When we compare the possible 4.5% per year yield with the house, 2 bed semi detached bungalows in the Blenheim Drive area sell for around £130,000 and detached ones for nearly £160,000 (depending on condition). Considering there is hardly any difference in the rent achieved, be it semi or detached, but alot more relevant on the condition and layout, rents can be in the order of £600 to £650 per month, which means some semi bungalows could achieve returns of between 5.5% and 6% per year
Demand for bungalows is steadily rising, especially if they are presented well. If you would like more information on investing in Derby’s property market, be you a new landlord or an established one, we can give you that advice and opinion as it is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on St James Street.

Call me! 07977 235545
www.pplets.co.uk

Littleover’s property prices rise by 35% more than those in the Pear Tree area.

Back on 26th February, I spoke about a conversation I had with one of my landlords who lives in Littleover and has property to let in the Pear Tree and Littleover areas. If you recall, in that article I said the annual yield/return from the landlords buy to let investments would be 7.3% per year if he were to buy a property in the Pear Tree area , but only 3.4% per year in Littleover.

We went on to talk about these yields and that they do not reflect the period’s when there is no tenant (and thus no rent). These void periods (where there is no tenant and thus no rent) are much higher in the Pear Tree area compared to properties in Littleover, but I also said property values over the last 10 years have also increased at a much higher rate in Littleover than the Pear tree area and it this I want to talk about in this article. I have an extensive database of all the property sold in Derby, going back to around the mid 1990’s. It enables me to spot trends in the local Derby market and give that advice and opinion to existing and new landlords alike. That database came up with some interesting information, which I shared with my landlord and now I want to share with you.

An standard terraced house, in the last 10 years in the Pear Tree area has risen in value by 47% on average whilst property in Littleover have seen their property values rise on average by 57%, a third more (35% to be exact) than Peartree’s. It gets even more interesting when some of the more modern 4 and 5 bed detached houses in Littleover have seen a rise of between 80% to 90% in that time. Like I said last week, annual yield/return is not the only factor when choosing an investment property, you should also consider how long it takes to find a tenant and the potential increase in its value.

I look at the whole of the Derby market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on St James Street or call me on 07977 235545.

Who you gonna call?

The phrase "scientia potentia est" is a Latin aphorism often claimed to mean "knowledge is power". It is commonly attributed to Sir Francis Bacon, English philosopher, statesman, scientist, jurist, orator, essayist, and author, although there is no known occurrence of this precise phrase in Bacon's English or Latin writings. However, the expression "ipsa scientia potestas est" ('knowledge itself is power') occurs in Bacon's Meditationes Sacrae (1597). The exact phrase "scientia potentia est" was written for the first time in the 1651 work Leviathan by Thomas Hobbes, who was secretary to Bacon as a young man.

"Knowledge is a familiarity, awareness or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning." - according to Wikipedia!

Alright...so I've blown your mind with a bit of Latin and a scientific definition...

Lets speak in English shall we...

If you know what you're talking about, then you are best placed to offer advice and a more comprehensive service than others who, shall we say, are not as knowledgeable!

I make it my business to know what is happening in the local area when it comes to property - especially regarding residential lettings and property investment. Therefore, if you need any advice on letting your property or on where and what to buy, should you be looking for an investment property then I am always available for a chat.

As someone once said.. "Who you gonna call...?"

Call me on 07977 235545 or 01332 366171.