Gloucester and Cheltenham .. good time to buy property?

Following last week’s article, I had an interesting chat with a chap who lives in Churchdown. He is thinking of buying his first buy to let property and he wanted my opinion on the state of the market and whether it was a good time to invest.

He was particularly worried that with all the newspaper headlines of a booming housing market, there wouldn't be any demand by tenants. One of the best pieces of advice I can give to those looking to invest in property is a simple trick of the trade. You can judge the affordability of an area’s property market (and thus how much demand there could be) by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is. When we put this to the test, we found that Gloucester currently has an average property value of around £192,200 with the average salary being £28,288 per year. This is a ratio of 1 to 6.79. Meanwhile in Cheltenham, the ratio of property values to salary is 1 to 7.53 (as average salaries are £37,744 and values £284,500).

All these ratios are very fair, compared with other parts of the UK, but that doesn’t  tell the whole story. On these sorts of figures, that would mean a first time buyer would need to have a salary of £57,000pa to buy an average property in Cheltenham and £38,000pa in Cheltenham.

However, the issue isn’t affordability, it’s the raising of the 5% deposit, which when you add buying fees and costs, will be in the order of between £12,000 and £16,000. Tenant’s inability to raise that sort of money for the deposit is driving demand for rental property. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the Cheltenham or Gloucester rental market, please email me on  neil.west@belvoirlettings.com

Safe Bet - Gloucester - 2 Bed Terrace 5.1% Yield

This is very nice 2 bed terrace in the very popular area of Longlevens- The ideal rental property that will be snapped up if rented out. This will rent for around £625 and that's a yield of 5.1%. Not bad really and looking at the pictures no work required! This is a safe investment for the investor who does not want to do much work!

The Property is being marketed by the Property Centre and they say: 

Ideal first time buyer or investment. Located in the popular Greyhound Development, this two bedroom mid terrace will not be available for long. Comprising lounge, kitchen, two bedrooms and bathroom. Other benefits include double glazing, gas central heating and off road parking.

I say that if you are interested, then don't hang around as will appeal to both investor and first time buyer alike. Check out the link for more details 

http://www.zoopla.co.uk/for-sale/details/33608375

2 Bed Terrace Cheltenham - Good Rental Potential 5.5 % Yield

This 2 Bed Terrace property is on with RA Bennett. Ok it needs some TLC but could be a great rental property. On the market at £130k, spend 10K and you could get a rent of around £650 PCM. That's 5.5% yield and you added value too !

RA Bennett say 

investment opportunity offered with no onward chain

Mid terraced property within the St Pauls area of Cheltenham. The accommodation comprises; open plan living/dining room, kitchen, lobby and downstairs bathroom.
To the first floor are two double bedrooms.

Further benefits include double glazing, gas central heating and rear garden which has gated access which provides off-road parking for several cars.

I sat that properties in St Pauls are very popular as rentals and if you are prepared to put in a little effort, then this could be a great investment . See the link below for more details 

http://www.zoopla.co.uk/for-sale/details/32952328

3 Bed Linden Gloucester - 5.5% Yield

I've just seen this on the market with Andrews at £120,000. Ok, it needs some work! Spend 10K , total spend £130,000 and rent for £595 PCM . That means a 5.5 % yield 

Andrews say:

Offered for sale with no onward chain is this 3 bedroom terraced period home in Linden.
The accommodation comprises; living room, dining room, kitchen, downstairs bathroom and 3 bedrooms upstairs.
The property requires some cosmetic work. We have similar properties on the market and would recommend asking a member of the Andrews team to arrange for you to view them all.

I say that this won't be on the market long as Linden is always a popular area with tenants. 


For more info check out the link below 

http://www.zoopla.co.uk/for-sale/details/33125121

One Bed Flat Cheltenham - Tenant in place 6.5% Yield

This property is on the market with Andrews for £77500. There is already a tenant in place who is paying £425 PCM .Thats a return of 6.5 % and no void ! 

Andrews say 

Property features

• One Bedroom
• Ground Floor
• Tenant in situ

Property description

A one bedroom ground floor apartment sold with sitting tenant paying £425 per calendar month.

I say, worth checking out as if purchased with a good reliable tenant you won't have a void period and will have instant rent. Don't forget to check out the lease and management charges though. Go to the link below 

http://www.zoopla.co.uk/for-sale/details/32331462

Cheltenham and Gloucester property values over the last 5 years

Following last week’s article about how property values had risen at a much faster rate in Cheltenham than Gloucester over the last 12 months (68% faster in fact), I did promise that I would look at the history of values over a slightly longer period. If you recall, I said Gloucester property values had increased by 5% in that last 12 months from £183,100 to £192,200; yet in Cheltenham average property values have risen from £262,600 to £284,500 , a much higher rise of 8.4% in that same year.

So is Cheltenham property the best to invest in? Not necessarily! Property ownership is a long term consideration. Yes it is true that today’s Cheltenham property values are 8.4% higher than they were a year ago, but most of the growth (6.4% of the 8.4%) was in the Summer and Autumn of 2013, because in the last 6 months, they have only grown by 2% - property value increases are slowing down. Roll the clock back a little further and between Spring 2012 and Spring 2013, property values dropped by 3.5% in Cheltenham, whilst in Gloucester they remained stable.
However, look over the medium to long term, and over the last 5 years, both places are almost identical. Property values since the 2008 crash are on average 12.9% higher in Cheltenham and 13.7% in Gloucester. It just goes to show you should take short term price increases and decreases with a pinch of salt. Investing in property is a medium to long term thing and should be viewed as such by new and old investors alike.

Finally, investing in property is also about the yields / annual yield a landlord can earn each year as well as the capital growth. Different landlords have different needs for their investments.If you would like some advice about buying to let in Gloucester or Cheltenham, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first time, please email me on neil.west@belvoirlettings.com

3 Bed End Terrace Gloucester - Great Yield 6%

Just spotted this 3 bed property being marketed by The Property Centre in Gloucester. On the market for £115,000 and should let for at least £575 PCM - That's a 6% yield .

The Property Centre say :

• End Of Terrace
• Separate Dining Room
• Upstairs Toilet
• Gas Central Heated
• Enclosed Rear Garden
• Close To City Centre
• Investment Opportunity

The Property Centre are pleased to offer a three bedroom end of terrace property, accommodation consists of entrance hall, separate lounge/diner and bathroom. Upstairs there are three bedrooms and a separate toilet. This property is ideal for an investor or first time buyer.

I don't think that this will be around long as in good decorative order. Check out more details and pictures at 

http://www.zoopla.co.uk/for-sale/details/33189736

2 Bed Flat Cheltenham - Good investment property 5.7% Yield

Just spotted this 2 bed flat on the market with Perry Bishop. I say that this could be a great investment buy - On the market for £115000 and should rent for £550 minimum - That's  a 5.7 % yield . 

They Say: 

Description This purpose built ground floor flat with solid wall construction, offers two double bedrooms and is generally well proportioned throughout. The bathroom has been refitted to now provide a double size shower cubicle and separate wc. Considerable investment has been made with double glazing and gas central heating and the property is now ready for further refurbishment. An ideal first time buy or downsize, the property is offered with no onward chain. Furthermore there is an en bloc garage and communal gardens. 

amenities Set in a leafy cul de sac, the property is nonetheless close to various amenities with a choice of supermarkets, a regular bus route and the town can be found within 1 mile. The property is also well placed for access northbound at junction 10 and both north and south from junction 11. Furthermore, the railway station is approximately 1/2 mile away.  

Check out the link for more details and don't forget to ask about  length of lease and maintenance charges

http://www.zoopla.co.uk/for-sale/details/30640528

Cheltenham property market outperforms Gloucester’s by 68%

Last week, a landlord who lives in Southam, just north of Cheltenham rang me to discuss the rising property values in the Cheltenham area. He owns a varied portfolio of rental properties primarily in Leckhampton, Up Hatherley and one in Gloucester. He was worried that property values were out of control and if he should wait before adding to his portfolio. I did some research and this is what I found out and wanted to share my findings with you.

Over the last 12 months, Gloucester property values, had increased from £183,100 to £192,200, a rise of £9,100 or just £175 per week, which is a modest 5% increase. In Cheltenham average property values have risen from £262,600 to £284,500 , a rise of £21,900 (or £421 per week), or in terms of a percentage rise, an impressive 8.4% in a year (making the rise in property values in Cheltenham, over the last year, 68% higher than Gloucester’s.

However, that doesn’t tell the whole story, because capital values aren’t the only factor for investing in property. The average yield (or return) is the other part of the investment. The average rent achieved in Cheltenham is, as one would expect, quite high at £923 per month. This gives us a decent yield of 3.9% per year, until you compare it with Gloucester’s. As mentioned above, the average property value, as one would expect when comparing with Cheltenham, is much lower at £192,200, as is the average rent at £790 per month... but work your yields out, and Gloucester landlords enjoy average yields of 4.9% per year, which doesn’t much sound more, but it’s still proportionally a quarter more than Cheltenham’s.

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the Cheltenham or Gloucester rental market for the first time, please email me on neil.west@belvoirlettings.com Next week, I will look at property values over the last five years in both Cheltenham and Gloucester and it will show a completely different story can told between the two areas when we look at property values over a longer time frame, and will certainly surprise people from both locations.

Two Bed Abbeymead Gloucester 5.75 % Yield

On the market for £130000 would let for £625 PCM,maybe more which is healthy yield of 5.75 % . This wont be around long! 

Two bedrooms, End terrace just come on the market with Taylors. Great area and always very popular rentals. This is what Taylors have to say 

Taylors are offering this two bed, end terrace property with a good sized garden and off road parking for two cars. Located in a sought after cul-de-sac in abbeymead this property must been seen to appreciate its full potential. 

• End of Terrace House
• Two Double Bedrooms
• Kitchen / Diner
• Upvc Double Glazing
• Gas Central Heating
• Parking to Front
• No Onward Chain 

Check out the link below for more details 

http://www.zoopla.co.uk/for-sale/details/33545740

Grosvenor Place South - Cheltenham 5% Yield

This one bed flat has just come on the market with Peter Ball at £129,950.

Peter Ball say  "A recently refurbished, first floor apartment forming part of a period terrace, located in a quiet cul-de-sac, within a short walk of Cheltenham town centre and amenities. The accommodation comprises entrance hall with doors to bedroom, cloakroom and living room. The open plan living room/kitchen measures an impressive 19' x 13'5 and has three large sash windows to the front aspect, feature fireplace and coving. The kitchen area is fitted with a range of matching eye and base level storage units with work surfaces over, inset stainless steel sink with drainer unit over and space for further appliances. The bedroom has a window to the rear aspect, built-in wardrobe and leads to the shower room. The property is warmed by an electric oil heaters and further benefits from a large private storage cupboard off the landing. The property is offered for sale with no onward chain."

Flats like this rent well and I would expect that this would let at around £550.00 PCM  giving a reasonable yield of around 5%. See link below for more details and pictures.

http://www.rightmove.co.uk/property-for-sale/property-30952473.html