Falkirk property investors – do you have a game plan?

Last weekend I was on holiday with family and friends.  We were staying in Port Appin on the West coast of Scotland.  It’s the sort of place you need to provide your own entertainment and we played many, many board and card games!  One of the board games we played was Monopoly (the original one, not the fancy new ones you get with card readers) and I had actually forgotten how much fun it was and secretly how competitive I am. Yes it’s just a game but I had a game plan (buy everything I land on except the Stations and the Utilities!). 

Having a game plan is key when investing your money in a Falkirk property.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the Gartcows area, the High Station area and the Lionhorn area which are perceived as being more desirable, where you may be able to achieve an annual yield of around 4-6%.

If you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-8%. This level of risk can be typically taken with properties in New Carron Village and the Ewing Drive area, I am happy to discuss and outline specific streets in these areas.

If you are after annual yields of 8% and over, you could take more of a risk with properties in other part of Falkirk, for example certain streets in Camelon and Tamforhill, which are more likely to attract tenants that are relying solely or mainly on benefits.  Many landlords shy away from these sort of properties because they ‘can’t be bothered with the hassle’.  However, they are worth considering.  Sure you can get bad tenants that are on benefits but you can get bad tenants that are not on benefits ..... and, as I have mentioned in a previous blog, 46% of tenants are on housing benefit so there are probably far more people on benefits that you may think.  Do not get me wrong, there are specific risks with tenants who rely solely or mainly on benefits – mainly around getting paid! – but I have proven strategies to reduce these risks that I would be happy to share with you.

As always, if you would like to send any deals you have seen online over to me or you would like to pop in and have a chat, then you can either email me news@thekeyplace.co.uk or call me on 01324 469840. Our address is 6 Vicar Street, Falkirk (just down from the High Street). The kettle is always on and we will even pull out the posh biscuits!

                                                     www.thekeyplace.co.uk

Will Falkirk party poopers bag a property bargain in December?

I was out with a landlord from Larbert last week viewing one of the properties featured on The Falkirk Property Blog that he was thinking about buying to rent out.  When we were chatting, he said that he was going to stop looking for buy to let properties until the New Year as December is not a good month to buy given that everybody was more interested in shopping and parties than properties in December. 

Well, that got me thinking. 

True, December is one of the quietest months of the year for house sales with only around 6% of Falkirk house sales being agreed in December compared to 10% plus in the peak Spring and Summer months.

However, this can be an opportunity to get a good deal.

Your bids look better

When other potential buyers are taking a break from property hunting to shop and party, a keen seller will be really happy to see you and a lack of other bids will make your ‘competitive’ bid seem more appealing.  This year it is a particularly good idea to carry on looking for properties while other potential buyers are distracted as, at the moment, property demand is outstripping supply so by hunting for properties when it is quieter and you stand a better chance of snapping up good property at a competitive price.

You might get a better mortgage

Another reason to property hunt in December is that with many people distracted by Christmas you are also likely to find mortgage lenders aren’t quite as busy as normal either. This means your application may be dealt with quicker and you could even get a better deal.

Lenders have certainly been competing harder in the buy to let market recently and many fixed rates and fees have been cut as a result.

In my experience, towards the end of the year many lenders are either eager to get business on the books before the end of the year so they can hit their bonus targets or to start building a pipeline of business to go towards next year’s bonus target.

Getting ahead

Finally, sticking with your search through the busy Christmas month can also put you a step ahead of the numerous new buyers who come to the market in the New Year.  Early January is a very busy time of year for the property market. After the Christmas lull, thoughts turn to plans and resolutions for the year ahead or have to deal with the consequences of break ups over Christmas, which in turn triggers more people looking for properties.

I looked on the property sales websites this morning and spotted that there are around 184 properties in Falkirk for sale at the moment ranging from 1 bedroom flats costing £40,000 to 7 bedroomed palaces costing over £775,000 and some of these properties having been on the market for over a year. 

I am not wanting to be seen as a party pooper but December can be a good month to bag a buy to let bargain and I am sure that you can multi-task and look for a property bargain in Falkirk as well as shop and party in December!

We would be delighted to be dragged away from our shopping and partying to have a chat with you and advise you about the Falkirk property market in general or specific properties that you are looking at. We don't charge for that advice.  If you want some advice, phone me on 01324 469840, come and see me in our office (6 Vicar Street, Falkirk) or email me (news@thekeyplace.co.uk).

                                                       www.thekeyplace.co.uk

Winter is Here – Top Tips for Protecting Your Falkirk Property

Well the clocks have gone back and it’s getting dark well before 4:30pm in Falkirk.  The daily chore of de-icing your car has started.  Winter can be a tough time for everyone – but none more so than landlords.

These colder months present potential risks to your rental properties, which could lead to costly problems.  However, taking some time now to check your properties can help with un-expected costs and help ease you through a disaster free winter.

Void Periods

Void periods are a major threat during the cold months. If you know that your property is likely to be empty over the winter, you need to make extra plans to ensure its upkeep. Make sure that you visit regularly to open windows and check on the heating.  If you can’t do this yourself, make sure that you arrange for someone else to visit.

If your property is likely to be unoccupied over the Christmas period, either while your tenants are taking a long holiday or students are returning home, ensure that you take the following precautions as expensive items on display are an easy target for thieves.

Invest in theft deterrents such as alarms (visible from the exterior of the property) and motion sensors.  Ensure that the locking mechanisms meet the insurance policy requirements (usually 5 lever mortise locks but this may vary from policy to policy).

It’s also worth checking if there are any neighbourhood watch groups operating in the area and advise them of any void periods over the festive season.

Prevention

Even before you get to winter, get things checked out well in advance.  If you are not covered by a guarantee or warranty it will probably cost more to get stuff fixed at Christmas time (and even if you do have a warranty it will take longer).  So, if the boiler is making a wheezing noise or the washing machine is clanking, have it checked out now. 

Keep Tenants Informed

Well-informed tenants are the best protection against winter property damage.  Don’t assume that your tenants know how to deal with the cold weather; many won’t.  Similarly, you should remember that it is your responsibility as a landlord to make sure they have the information they need.

Consider putting together an information pack, including things like the location of stopcocks, basic boiler operation, and so on. Remind tenants to periodically turn the heating on (using the timer system if one is available) if they go away over Christmas, in order to ensure that pipes don’t freeze. Another great way to warm up your property is to bleed the radiators. This releases any trapped air, allowing hot water to fill every part of your radiator and warm the property more efficiently. It may be worth dropping off some radiator keys to your properties and showing your tenants how to use them.

Make sure they know where the fuse box is and that they know how to turn off the gas.  Tell them to keep a note of the number 0800 111 999 – they should call this if they smell gas.

Ask friends for names and phone numbers of good plumbers, heating engineers and other trades people.  Have some portable electric fan heaters you can use to give your tenants to keep them warm if the heating conks out and no one can come out and fix it promptly.

Getting the Work Done

Only use properly qualified tradesmen who are member of a national body of association.  Check what membership of the body gives you and check they really are members by asking for ID.  For example, all gas engineers should be listed on http://www.gassaferegister.co.uk/ (the new name for Corgi).

Decent plumbers and some heating engineers should be in http://www.ciphe.org.uk/ (which also has a list of plumber and heating engineers who are available over the Christmas period) or the Association of Plumbing and Heating Engineers.  Some white good suppliers are closed for only one day at Christmas.

If you are a landlord who may have a void property over winter, then feel free to get in touch and let us at The Key Place provide you with a fully reference checked and credit checked tenant in your property before the weather gets even colder, to ensure your asset is protected.

Email me on news@thekeyplace.co.uk or call on 01324 469840. If you are in the area, feel free to pop into the office – we are at 6 Vicar Street, Falkirk, FK1 1JL.  The kettle is always on.

www.thekeyplace.co.uk

Trump and the UK Housing Market

Whilst I don't like the man – the American people have spoken ....

.... but this isn't the end of the world for the UK or its property market!

Cancel the Nuclear Shelter off Amazon and just take a deep breath for a second.

There are questions about the level of competence of Mr Trump but before you all go and panic .... don't forget that Reagan was also regarded as grossly incompetent — by the world's media and the High Brow Washington establishment .... but not by Republican voters in 1980 (and re-elected in 1984) ....

The upper-class Washington types depicted Reagan as some sort of B-rated cowboy film star who was all 'yeaa-haw' and a loose cannon, who might be just tolerable as the Governor of California, but who was definitely not sophisticated enough to comprehend, let alone conduct, foreign policy of the US Presidency.  If memory serves me well – on most things (not all) – he did a pretty good job.

There are plenty of other factors, closer to home, that we need to be concerned about than the President of the US and the effect of the UK Housing Market

.... just my opinion ............