The Falkirk Property Blog - Festive Greetings To All Our Readers

Well investors 2018 is drawing to a close and the property world is beginning to go into Christmas hibernation, so I wanted to take this opportunity to thank all the followers of the blog for your support during 2018.

Your support has been much appreciated and I have enjoyed the debate the blog has generated with you all, the majority of whom have become good friends, as well as valued customers. It has been an interesting year for investors in the Falkirk property market, with increases in average prices combined with much new and rents in the face of the BREXIT uncertainty, new legislation to take on board particularly for letting agents; announced changes in ADT rates, to name but a few.

Those of you who follow the blog know my views moving into the New Year and those of you with existing profitable portfolios in place have different challenges, to those just starting out in their property investment careers. As ever, I will endeavour to continue to post articles covering all investment opportunities in the property market in Falkirk, when I return to the blog the week commencing 7th January.

In finishing I would like to wish all my readers a very Merry Christmas and a happy and prosperous New Year.

If you would like to explore how I can help you with your property investments, or should you require any advice about investing in the Falkirk property market, wish to enquire about our Investment Analysis Reports, Property Sourcing, Residential Lettings or Property Management services, please do not hesitate to call me on 0324 469840 or email me on robert@thekeyplace.co.uk.

Alternatively, please feel free to pop in and see us at our offices in Vicar Street, Falkirk for a chat, the coffee is always on.

Don't forget to visit www.thefalkirkpropertyblog.co.uk to view back dated articles and deals from The Falkirk Property Blog. 

www.thekeyplace.co.uk

#bathgate #bonnyrigg #bo’ness #boness #dalkeith #edinburgh #falkirk #grangemouth #kelso #linlithgow #livingston #loanhead #musselburgh #penicuik #stirling #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #firsttimebuyers #brexit #hardbrexit #cliffedge #epc #childbenefit #benefits

Implementation of minimum EPC rating for rental properties from 1st April 2020 .... the problem and the solution!

Problem: Implementation of Minimum “EPC” rating to enable property to be let

Solution:  Read Below

The Energy Performance Certificate (“EPC”) rules are being tightened up so that:

• As from from 1 April 2020, any new tenancy will require the property to have an EPC rating of at least band “E” to enable the property to be legally available to be let.
• By 31 March 2022, all rental properties require to have a Band E property rating.
• By 31 March 2025, all rental properties will need to have at least an EPC band D rating.

https://www.gov.scot/publications/energy-efficient-scotland-frequently-asked-questions-private-rented-sector/

There is some ‘free’ funding available to help landlords with the improvements required to achieve these higher standards so long as their tenants are registered for at least of the benefits set out in Appendix 1.  This covers things like:

• Internal Wall Insulation for stone/solid/system built properties (eg old tenements, bungalows, etc) heated by (a) plug in mobile heaters, (b) electric storage heaters or (c) electric panel/room heaters.
• Loft insulation for properties with less than 100mm of existing loft insulation, this can be topped up to 400mm.
• Cavity wall insulation for properties that have not had treatment for cavity wall insulation before. 
• Room in roof insulation - this is where a room has been built into the loft area, but doesn’t have adequate insulation.
• Under Floor Insulation – must have access hatch to under floor and 1m clear head room.
• First time central heating – for properties that don’t have a current central heating system,  there is funding for a full central heating system. This will start from January 2019.

Experience of ‘free’ funding schemes is that it is best to get in quick before the money runs out ..... so do not delay!

Appendix A

The benefits mentioned above are as follows:

Disability Living Allowance (DLA)

Personal Independence payment (PiP)

Attendance Allowance

Carer’s Allowance

Severe disablement allowance

Industrial injuries disablement benefit

Income related Employment & Support Allowance (ESA)

Income-based Job Seekers Allowance (JSA)

Income Support

Pension Guarantee Credit

Tax Credits (Child Tax Credit or Working Tax Credit)

Universal Credit

Child Benefit   

#bathgate #bonnyrigg #bo’ness #boness #dalkeith #edinburgh #falkirk #grangemouth #kelso #linlithgow #livingston #loanhead #musselburgh #penicuik #stirling #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #firsttimebuyers #brexit #hardbrexit #cliffedge #epc #childbenefit #benefits

Terraced detached houses in Falkirk smash through the £135/sq ft barrier

As I mentioned in one of my blogs the other week, I was having a cup of tea at Finnegans Cafe recently with a landlord.  This landlord already has a couple of residential properties as well as a commercial unit that are doing very well for him and is on the look out for a third residential property.  When we were talking, he asked me a question that made complete sense in terms of commercial property but was as bit ‘left field’ from a residential property point of view – how much he should be paying per square foot?

Well, that was a challenge and you know how I like a challenge!

So I did my research and found out that:

• The average flat in Falkirk is currently selling for approximately £125 per square foot costing, on average, £91,508.
• Terraced houses in the town are currently selling for, on average, £109,952 or £137 per square foot.
• An average semi in Falkirk is obtaining £149,564 and achieving £152 per square foot.
• Finally, the average detached house in Falkirk is achieving £170 per square foot and is selling for £254,396 although this selling price is skewed by a relatively small number of high value properties that do not make viable buy to let properties.

Now these are of course averages, but it gives you a good place to start from.

My research also reveals that:

• Falkirk terraced houses tend to generate a better yield than detached and semi-detached houses (probably because they are cheaper to buy than semi-detached houses but rents as fairly similar) and flats (probably because there are a fair few flats for rent in Falkirk).
• Semi-detached houses tend to appreciate in value more rapidly than terraced houses but detached houses and flats tend to appreciate less.

So, terraced houses are the second cheapest to buy per sq ft, give the highest rental yield and give the second best capital growth.  That’s interesting.

If you would like to explore how we can help you with your property investments, or should you require any advice about investing in the Falkirk property market, wish to enquire about our Investment Analysis Reports, Property Sourcing, Residential Lettings or Property Management services, please do not hesitate to contact me for a chat – phone me on 01324 469840, email me on robert@thekeyplace.co.uk or pop into the office at 6 Vicar Street, Falkirk.

www.thekeyplace.co.uk

#falkirk #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #privaterentedsector #prs #firsttimebuyers #lettingagents

Mental health support .... all part of the day job for a letting agent

Latest instalment of The Key Place's regular blog 'Confessions of a  . . . Letting Agent'

Landlords often ask us what goes on behind the scenes at The Key Place and so we thought we would share our experiences, and what we have learned from those experiences, with you.

I have working in lettings for many years and can categorically state that in this job there are no 2 days the same.  I look back and think there are many times when I or my staff could have taken the easy option and been less helpful to our tenants, however often taking the roundabout route results in a more positive outcome for our landlords.  Here is one such example.

We had a lovely Italian tenant, Luigi, who was a long term tenant in a flat in the south side of Edinburgh.  He was the sort of tenant all letting agents and landlords want – a professional who worked in IT, paid his rent in full 6 months in advance, kept the flat clean and tidy, was never a bother.  I used to put extra time in my diary to do inspections at Luigi’s flat as he always made me a strong Italian coffee and we would sit and put the world to rights for a while.

After being a tenant for years Luigi became very paranoid.  Whether it was stress related, a mental health issue or down to too much strong Italian coffee, I will never know.  However as a result of the paranoia Luigi requested the locks be changed on his front door.  He wanted an additional lock fitted, so that he would have a Yale, a Chubb and a new extra Chubb lock.  His logic for this was that when tradesmen visited the flat, only the new Chubb would be locked – they would therefore only be given this key, and not the other 2.  Luigi was very anxious that we meet this demand and was really quite insistent.

Although a strange request, we agreed.  Thinking about Luigi as a tenant, we decided we wanted to keep him.  Often it is better to make a small compromise to keep a good long term tenant than to refuse help and risk losing them.

Sadly Luigi has left now and gone back to Italy to be with his family.  We miss him as a tenant and wish him well, although I do hope he is staying away from the Italian coffee!

For information about the services we offer, please visit our website www.thekeyplace.co.uk

www.thekeyplace.co.uk

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Impressive 9.5% rental yield on this Falkirk BTL flat

Today’s buy to let opportunity from The Falkirk Property Blog offers an impressive potential rental yield of 9.5%.

The property is a two bed upper flat in a 4-in-a-block property Merchiston Avenue, Falkirk.  It has a large lounge, a separate fitted kitchen, two double bedrooms and a shower room.  In addition, it has double glazing and central heating as well as a garden to the rear and on-street parking.

It is worth highlighting a few points.  The property looks in excellent condition internally – I suspect that it has recently been refurbished – but the garden could do with a wee bit of TLC.  The property is an upper flat which is attractive to some but not to others.  Finally, the flat only has a shower which puts some people off, especially families.

Double click here to see more details of this property

Taking a look at the numbers.  The flat is on the market with Nest estate Agents for offers over £55,000 so let’s say it goes for £60,000.  I would expect this property to achieve a rent of £475 pcm so, when we work out the annual yield, you could be looking at a potential gross return of 9.5%.  This is a very healthy yield which reflects the more limited capital growth likely for a property of this type.

I hope you find our posts useful.  If you would like some advice with your potential investment, please come and see me in our offices (6 Vicar Street, Falkirk), call me (01324 469840) or email me (robert@thekeyplace.co.uk).

www.thekeyplace.co.uk

#falkirk #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #privaterentedsector #firsttimebuyers