As January draws to a close the race for property in Locks Heath and surrounding areas is in full swing.

Investors that are keen to beat 3% Stamp Duty hikes must complete on their Buy to Let property purchases prior to 1 April 2016.  This, together with first time buyers also looking for similar properties has created a frenzy of activity which is set to continue for a little while longer.

The most currently sought after are one and two bedroom properties between £110,000 and £250,000.  These appeal to the first time buyer market as well as investors and the competition has forced prices higher and also meant that these properties are currently in short supply.

So if you are still keen to purchase a property prior to the April deadline but are struggling to find something what can you do?

Recently on the increase is trading between Landlords.  We are currently progressing sales of managed investment properties between existing Landlords and potential investors.  The big bonus with these transactions is that for the new owner there is no stress of finding a Tenant to coincide with the completion date as the properties all have Tenants already in residence on fixed term contracts.

You can all be told what an Agent thinks a property may rent out for when you are handed the details but with this type of transaction I can actually show you exactly what the property is making and give you a brief synopsis of the Tenant.  This puts you in a far better position to know what lies ahead.

I still have Landlords who are willing to trade on their properties with Tenants in place so if you wish to discuss the options in more detail please call me on 01489 570011 or email me at james.hill@brooklettings.co.uk.

 I met with an existing Landlord this week who wants to buy another property to let and is keen to do so before 1 April.

As many investors are trying to do the same there is limited choice available in the one and two bedroom market that is going to give the type of return that they are looking for.
The average price of a two bedroom property in SO31 is now £229,700. The average rental is around £795pcm meaning that the yield for this type of property is now 4.15%. The Landlords looking at the short term return rather than the capital growth over a longer period are therefore starting to look at other options.

The average price of a one bedroom property in SO31 is currently £147,500. The average rental is around £625pcm meaning that the yield for this type of property is now 5.08%. This still makes one bedroom properties attractive propositions for Landlords.
One avenue I explored with my existing Landlord was the option of buying a larger property and converting it to an HMO to give him a better return. The average three bedroom property in SO31 is currently £302,100. To rent out the three bedrooms separately at £500pcm with communal use of the other areas would give an attractive return of 5.96%.

Naturally there are some expenses involved in making sure the property complies legally and obtaining a license from your local authority. But the option of an HMO could be one worth looking into if you want a decent annual return on your investment.

If you are thinking of investing in a Buy to Let property whether you are an existing Landlord or doing so for the first time please contact me to discuss on 01489 570011 or james.hill@brooklettings.co.uk.

You can obtain more information on HMO licensing in the Fareham Borough here:http://www.fareham.gov.uk/licensing_and_inspections/environmental_polution/hmolicensing.aspx

As expected it has been a very busy start to 2016 and the number of investors coming into the office has risen considerably.

I saw a couple this week who have decided to try and beat the rise in Stamp Duty coming in April and invest in a Buy to Let property.  They asked me what I thought was the best type of property to buy to maximise the return on their investment.

We started by looking at two bedroom freehold properties which was their preference when we started speaking.  Two bedroom houses in Locks Heath have risen to the £200,000 mark and with a projected rental income of around £795 pcm this would give a return of 4.77%.

We compared that with this one bedroom leasehold flat which is currently on the market for £110,000.  This has a Tenant moving in tomorrow on a six month fixed term contract paying £525 pcm.  Even taking the annual management charge of £680 in to account this property would give a return of 5.10%.

Two bedroom properties being in short supply in Locks Heath has forced asking prices up and they are no longer looking such great investments for those Landlords wanting a decent yield.  The investment above therefore looks a fantastic option.

If you are thinking of investing in a Buy to Let property and would like some advice please come in and see me at our office in Middle Road, Park Gate or call me on 01489 570011.