What type of property in Gloucester sells the best?

Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why?  Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to. Bearing this in mind, last week, a couple popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.

A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but of the 46,444 households in Gloucester there are 1,831 properties on the market for sale. Of those 1,831 properties, 944 properties are fully available on the open market waiting for a buyer and 887 have buyers and are sold subject to contract. That means 48.4% of property on the market has a buyer in Gloucester (interestingly Cheltenham has 43.9% of properties on the market have a buyer – an almost identical figure to Gloucester’s and in Bristol of the 6,615 that are presently on the market, 55.6% or 3,683 are currently sold subject to contract). However, delve deeper, and in Gloucester today, 43.3% of detached houses on the market have a buyer and great news for terraced property owners, as 52.6% of them have buyers.  Semi-detached houses fair even better, with 251of the 439 on the market now having buyers (making 57.1%).  Bungalows do quite well with 51.2% or 62 of the 121 on the market in Gloucester having a buyer and sold subject to contract.  The properties that appear to be sticking though are apartments in Gloucester at a comparatively lower 31.4%.I am always giving advice to my existing and new landlords in Cheltenham and Gloucester (as I have offices in both towns) on what to buy (or not as the case may be).  Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.  

2 Bed Terrace Hatherley - 4.7% Yield

This 2 Bed Terrace property has just come on to  the market with Adams. It looks well presented and is located in one of the most popular rental areas in Cheltenham . On the market for just short of £190K , I think it should let for £750.00 PCM. This will be popular with small families and should let easily , therefore minimal void periods. The yield would be around 4.7% which is not fantastic but this would be a relative "safe " investment. You need to think about capital growth as well and this should be relatively strong in such a popular area.

                             http://www.zoopla.co.uk/for-sale/details/34647780

Why not give Adams a call to take a look. If you would like advice re the rentals opportunities of this or any other property, please do not hesitate to contact me - neil.west@belvoir.co.uk

2 Bed Terrace , Gloucester 5.5 % Yield

2 bed terraced property on the market with Michael Tuck at just short of £120K. Great rental property in a very popular area of Quedgeley. This will rent for £550 , if not £575 ( in tip top condition) . Thats a 5.5% to 5.75 % yield. 

                             http://www.zoopla.co.uk/for-sale/details/34625309

This is what Michael Tuck have to say:Michael Tuck estate agents are pleased to offer for sale a terraced house located in a Cul-d-Sac location on Millers Dyke. Comprises entrance hall, kitchen, lounge diner, two bedrooms and bathroom. Further benefits include UPVC double glazing, gas radiator central heating and gardens. Although in need of general updating the property is sure to appeal to investors and first time buyers alike, so an early appointment to view comes highly recommended

I say, that if you are looking for a relative safe bet, then this should be looked at. If you would like any advice regarding this or any other property, then please contact me.

Matson property market outperforms Churchdown by 400%

 I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money, knowing the return they would get investing in the Bank. They were looking for advice as to what kind of property they should buy but wanted some advice on what property to buy and in what location.

Their budget was in the £300,000 to £350,000 region, so I initially looked at semi detached houses in Churchdown. The average value of a three bed semi detached property in Churchdown area is £231,500. The three beds rent on average for £850 per month giving an annual yield of 4.4%.  This gave us some change and I then suggested they get a second property with the aid of a mortgage.  However, the couple were not interested in taking a mortgage (although it does give certain tax advantages to the landlords when you buy with a mortgage).  Therefore, I considered the Matson area on the South West side of Gloucester.   One bedroom maisonette apartments are worth on average £53,000 here and rent for around £425 per month, giving a much better yield of 17.6%, which is proportionally 400% more than Churchdown.

However, to judge a rental investment, you must consider the capital growth as well as the yield. Since late 2001/ early 2002, the average Matson property has only risen by 53.1% (interesting the cost of living/inflation has risen by 47.3% since late 2001/early 2002, so in REAL terms, property in Matson has hardly risen at all).  This is quite relevant when you consider overall Gloucester average property values have risen by 74.2% over the same time frame.  However, even better, semi-detached houses in Churchdown have risen impressively by 118.2% during this time. Ultimately, we found both areas to be a good investment depending on your own situation, but as you can see, Matson does offer better yields, but at the expense of the capital growth that Churchdown offers. 

If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices on Worcester Street for a chat or email me direct on neil.west@belvoirlettings.com

3 Bed Flat - £85K !!! Cheltenham 8.4 % Yield !!!

I looked at this and thought 3 bed Flat  £85K - Must be a mistake! This should rent for around £600.00 PCM as the sales agent say. That's a great return of 8.4%. On reading the advert again, I noticed that this was a GUIDE price and that the agents were carrying out open viewings. This suggests to me that this property will probably go for more than £85K. Saying that, its well worth a look as at £100k will still be a 7.2 Yield.

                             http://www.zoopla.co.uk/for-sale/details/31469490

The sales agent does not have a lot to say really , probably because they think that this will walk out of the door and they are probably right. Please contact me , if you would like any advice on the rental market in Cheltenham or Gloucester. 

Also just to let you know Belvoir are entering the sales market. However this does not mean that I will not be offering free unbiased advise on other agents properties exactly the same as I am now. 

One Bed - Gloucester 6.0% Yield

Great investment opportunity in Quedegley. Gloucester. On the market for £105K and should let for £525.00 PCM. One bed houses are always in great demand as rentals as don't come along very often. Loads of one bed flats but not houses. This makes this a great investment opportunity.   

                              http://www.zoopla.co.uk/for-sale/details/34549407

The Property Centre have this to say : Double bedroom terrace house offered 'For Sale' with no onward chain. Accommodation comprises to the ground floor lounge and kitchen, whilst upstairs are two bedrooms and family bathroom. Externally is an enclosed garden plus parking for two cars. Ideal first time / investment purchase. Rental income in the region of £500-525pcm. Rental yield of approximately 6% based on £525pcm.( Think they mean one bedroom not two) 

I do agree with their rental projection and think that this is worth looking into further. If you would like any advice on this or any other property, then please do contact me on neil.west@belvoirletting.com or 01452 387334.

One Bed Flat - Cheltenham - 5.7 % Yield

I have just seen this well presented flat on the market with The Property Centre, on the market for £120K and should rent for around £575 PCM. Looks great, allocated parking and a popular area. This should give you a yield of around 5.7%. As with all leasehold properties, you need to check out the term of the lease and the management charges. 

                              http://www.zoopla.co.uk/for-sale/details/34489629

This is what The Property Centre have to say: Potential Rental Income Of £575 pcm. A ground floor apartment located in the popular area of Battledown Estate. An ideal investment or first time purchase benefiting from allocated car parking. The accommodation comprises open plan living room, fitted kitchen, bedroom and bathroom.

I think that this is worth checking out and if you need any advise regarding this or any other property, then please contact me at  neil.west@belvoirlettings.com

3 Bed Semi Detached - Quedgeley 5.2 % Yield

This 3 bed semi on the market with The Property Centre would make a great investment. On the market for £155,000 and should let for £675 PCM, that's a yield of 5.2%

                             http://www.zoopla.co.uk/for-sale/details/34490371

The Property Centre say :The Property Centre are pleased to offer 'For Sale' this three bedroom semi-detached House in Downy Close. Accommodation comprises to the ground floor a 16'8 lounge and kitchen / breakfast room, whilst upstairs are the three bedrooms plus a family bathroom. Externally is an enclosed garden to rear and off road parking to the front.

I think that this is an ideal investment as the property will appeal to families and will always be in demand.

I have been away for a while but now I am back. If you would like any advice on this or any other property, then please contact me at neil.west@belvoirlettings.com

Cheltenham vs Gloucester.. the tale of two very different property markets

I was talking to one of my landlords from Stroud the other week, when we were looking over a few properties that he was considering to buy in Cheltenham or Gloucester. As we have offices in both places, I was able to discuss the two areas in depth. We started to notice an interesting pattern in the house prices between the two. Cheltenham has always been a more expensive town to buy in comparison to Gloucester, but depending on what type of property you buy, there are some fascinating differences.

A few weeks ago, we said that the average value of a property in Gloucester was £204,000, compared to Cheltenham ‘s of £297,900 (making Cheltenham 46% higher). However, when you look deeper, things become quite interesting between the two places. Detached houses in Cheltenham are 42% higher than Gloucester’s (£471,800 to £310,600) ,flats are even higher being 55% more expensive in Cheltenham than they are in Gloucester (£184,100 to £118,400), terraced houses are even more expensive in Cheltenham having and average value of £235,700 compared to Gloucester’s £143,700, making Cheltenham’s terraced houses on average 63% more expensive.  Finally, semi-detached houses are 44% more expensive in Cheltenham compared to Gloucester (£271,100 to £187,100).

So if you look at the individual property types (i.e. detached, semi-detached, terraced and flats) the one thing which struck me was that whilst overall the average property in Cheltenham is 46% more expensive that Gloucester in some types, including terraced and flats, they are considerably more at 50 to 60%  more expensive.  Well after investigating, it transpires that in Gloucester there are 20.2% proportionally more detached houses than Cheltenham and 21.3% more semi-detached houses. However, on the other side of the coin, Cheltenham has proportionally 59% more flats and apartments compared to Gloucester.

As Gloucester has a lot more expensive detached and semi-detached houses and a shortage of apartments, this means the overall average property price is driven up in Gloucester over Cheltenham. These differing housing provisions in the two places just goes to show that you need to know your marketplace and decide which is the right place for your money. If you are an existing landlord or one who is thinking of become one in Cheltenham and Gloucester, don’t hesitate to pop by our offices on either Cheltenham  or Gloucester or send me an email to neil.west@belvoirlettings.com