Eyes On… This Weeks Investments in Newark

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This weeks round up of new properties for sale in NG24, up to a value of £150,000.

A quick reference guide to what is on offer, for how much and what you can expect as an investor.

Address: Grange Road, Newark
Type: 3 bed semi detached
Asking price: £149,950
Estate Agent: CPG 01636 345045
Condition: Decent condition.
Rent Range: £575 – £625 pcm
Yield: Up to 5%
Comments: Would benefit from new kitchen units. Nice garden. Neutral décor.

Address: Simpson View, Balderton
Type: 3 bed mews house
Asking price: £145,000
Estate Agent: CPG 01636 345045
Condition: New build
Rent range: £595 – £625 pcm
Yield: Up to 5.1%
Comments: Brand new and ready to move in. Quite basic.

Address: 33 Nelson Road, New Balderton
Type: 2 bed semi detached bungalow
Asking Price: £137,500
Estate Agent: NOW Homes 01636 858311
Condition: Some modernisation required
Rent Range: £575 pcm
Yield: 5%
Comments: A little dated but looks cared for. Popular area of Balderton.

Address: 37 De Caldwell Drive, Newark
Type: 2 bed end of terrace
Asking price: £129,995
Estate Agent: Richard Watkinson 01636 611811
Condition: Nicely presented. Ready to go.
Rent range: £595 pcm
Yield: 5.5%
Comments: Attractive property in good condition.

Address: Barley Way, Newark
Type: 3 bed end of terrace
Asking Price: £129,950
Estate Agent: Martin & Co 01636 605006
Condition: Ready to rent
Rent range: £520 – £550 pcm
Yield: Up to 5%
Comments: A compact but decent family home. Impressive toy mountain.

Address: 7 Coopers Yard, Newark
Type: 2 bed townhouse
Asking price: £129,950
Estate Agent: Alasdair Morrison 01636 700888
Condition: Light refurbishment required.
Rent range: £550 pcm
Yield: 5%
Comments: Awful kitchen floor. Little tired. Popular location.

Address: 48 Bowbridge Road, Newark
Type: 2 bed terraced house
Asking price: £125,000
Estate Agent: Richard Watkinson 01636 611811
Condition: Good condition
Rent range: £525 – £550 pcm
Yield: Up to 5.3%
Comments: If you like wallpaper, you will love this house. Well cared for family home. Neat & tidy. Good location.

Address: Hill Vue Gardens, Newark
Type: 2 bed semi detached house
Asking price: £124,950
Estate Agent: Jon Brambles 01636 613513
Condition: Light refurbishment required
Rent Range: £435 – £450 pcm
Yield: Up to 4.3%
Comments: Awful walls and carpet combo. Wrist watch on the wall. Decent garden, with gym.

Address: Albert Street, Newark
Type: 2 bed terraced house
Asking Price: £104,950
Estate Agent: Winkworth 01636 611666
Condition: Good condition. Well kept.
Rent range: £495
Yield: 5.65%
Comments: Smallest kitchen ever? Attractive courtyard garden. Large master bedroom.

Hannah’s Star Buy of The Week
Address: 7 Century Street, Newark
Type: 2 bed terraced house
Asking Price: £94,950
Estate Agent: Jon Brambles 01636 613513
Condition: Some decorating required.
Rent Range: £495 pcm
Yield: 6.2%
Comments: Make sure you shut the door when showering. Popular location close to town and schools.

Address: Goldstraw Lane, Fernwood
Type: 2 bed flat
Asking Price: £89,950
Estate Agent: Newton Fallowell 01636 675175
Condition: Tenant ready.
Rent range: £500 pcm
Yield: 6.6%
Comments: Neutral décor and wooden floors so ideal for renting out. Watch out for service charges.

Address: Standish House, Grange Road, Newark
Type: 1 bed flat
Asking price: £62,500
Estate Agent: Newton Fallowell 01636 675175
Condition: Basic
Rent range: £350 pcm
Yield: 6.72%
Comments: Ready to rent. Wood floors and neutral décor. Range of rotary dryers to choose form in the communal garden.

If you’ve seen a property in Nottinghamshire and would like a detailed report on it’s investment potential, call us on 01636 343014, or better still pop in for a chat and a cuppa.

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How to Spend £100,000 in a Day

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If you happen to have £100k in your pocket, what could that get you in Nottinghamshire?

A key part of our service is offering impartial advice to investors. They always want to know where to buy, what to buy and how much return they will get.

I have taken a look at the market today to give you an insight into the type of property available in this price bracket. Sometimes with change to spare.

Nottingham
For £100,000 you can buy this 1 bedroom apartment in the Lace Market area of Nottingham.
It is a first floor apartment in a warehouse conversion.
For the price you get 364sq ft. It offers open plan living with a combined kitchen/lounge space, which leads down a corridor to the bedroom. The only closed off space is the bathroom. There is no outdoor space or balcony.
It is a very nice looking apartment and would of course be a hit with young professionals in Nottingham.
Typical rental for this apartment would be £525 per month.
This gives a potential yield of 6.3%

Mansfield
For £98,000 you can buy this 3 bedroom semi-detached house in Mansfield Woodhouse. For the price you get approximately 800 sq. ft. of living space.
Lounge, dining room & kitchen/breakfast room on the ground floor. Upstairs are 3 bedrooms and a bathroom. Garden to the rear.
This type of property would be ideal for a family.
Typical rental for this house would be £575 per month.
This gives a potential yield of 7%

Newark
For £99,950 you can buy a 3 bedroom terraced house on Century Street.
For the price you get approximately 700sq ft. of living space. Lounge, dining room, kitchen & bathroom on the first floor. On the second floor are 3 bedrooms and a shower room. Garden to the rear.
This type of property would be ideal for a family.
Typical rental for this house would be £575 per month.
This gives a potential yield of 6.9%

All 3 properties offer decent returns on your investment and the results are typical for the type of property and location, in this specified price bracket of £100,000.

What this shows is that you can own considerably more bricks if you invest in the Mansfield or Newark area.

Apartments in the city centre will always be popular but will have a higher turnover of tenants.

Investing in a 2 or 3 bed house suited to families with children you are likely to get longer term tenants, especially if the property is in catchment for a good school.

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Buy to Let or Buy to Sell?

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BTL or BTS Strategy

One of the most common questions that is asked when investing in property is your strategy – Buy to Let (BTL) or Buy to Sell (BTS). This, of course, refers to the exit you intend to take with the property. So as returns on other investments are dropping and you are thinking about property, which strategy is best for you?

Buy to Let

Buy to let mortgages were first introduced in the UK in the 1990’s. It has been the last 10-12 years however that that sector has really taken off and people have become comfortable with specific buy to let investments. Proceeds from renting out a property are viewed by the HMRC as a salary and treated like income tax. This is the first consideration when looking at property investments. If you are currently employed and classed in the ‘Higher Rate’ tax bracket of £42,386 to £150,000 then you would be taxed 40% on the income generated from buy to let properties. There are tax deductions that you can make such as some mortgage interest and maintenance costs to reduce your tax liability however this is changing with the Chancellor’s summer budget.

An important factor in purchasing a buy to let property is the yield. A yield is the measure of annual rental income against the value of the property. Gross yield is the simple measure excluding costs. Net yield deducts costs and is a more true measure of the return. The higher the yield the better return the property is producing. A good gross yield would be in the region of 10%. For HMO’s (Houses of Multiple Occupation) you would expect a far greater gross yield of 15%+. When managed correctly, buy to let properties are a very safe and steady investment. If you are holding them for a long time you should be able to ride the volatile wave of house prices.

Another important note is that when you take a loan out and release equity from a property, this money is tax free. So if in the space of 10 years your property has doubled in value from £50,000 to £100,000 then you will have gained £50,000 in equity. You can re-mortgage this property and withdraw the funds tax free.

Buy to let properties are great if you are wanting to acquire a number of properties in order to replace your current salary and become financially free. They are also good for holding long term and benefiting from the capital growth that the UK property market brings.

*TOP TIP* Target areas with high employment and good infrastructure. Nearby schools will also prove a contributing factor as tenants also consider this when looking to move.

Buy to Sell

The buy to sell strategy is much more of a short term approach to increasing your capital. Purchase, renovation & resale. This requires a great deal of knowledge in the local market and ensuring you purchase the property at the right price. Selling a property is always an unknown as factors in the property market can change overnight reducing or increasing people’s ability to purchase a property.

The specification of the refurbishment should almost always be greater than a buy to let property and presentation is key in order to sell the property quickly. Many people think they can cut corners when refurbishing properties but it will only come back to bite you.

Income generated from selling a property is classed by the HMRC as a capital gain and is taxed as such. Capital gains tax is currently 18% or 28% depending on your income. There is also an annual exempt amount which is currently £11,100.

Buy to sell is a much riskier approach than buy to let but it also produces instant results. When analysing properties for a buy to sell strategy work on a minimum of 30% return on capital in order to make it worthwhile.

*TOP TIP* Target properties that are tired or marketed badly so you can add value and make it more appealing to purchasers. Think about family homes and retirement properties. Who is going to want to live there?

If you would like to get started in either of the above or would like any help or advice please contact us and we would be more than happy to help.

As well as managing property, we help source investments so if you would like to keep abreast of the latest buy to let and buy to sell opportunities in Newark & Nottinghamshire please email me.

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