Modern terraced House on New 'Blenheim Gate' Development

I noticed this two bedroom house being offered for sale at £160,000 on the Brand New Development of 'Blenheim Gate' today and properties like this have always been a brilliant investment and never a problem in securing tenants.

Approximately 1 year old, this two bedroom house is simply ready to be let! The kitchen/diner offers fitted fridge/freezer, washing machine, cooker & hob & dishwasher, ground floor cloakroom and first floor bathroom. 

Externally the property offers two off road parking spaces and enclosed rear garden. 

The 'Blenheim Gate' development is ideally positioned on the outskirts of Clacton-on-Sea, however is in a prime position for access to A133. 

With similar properties letting for £750 - £760 PCM, if you could purchase this house for around £155,000 you could achieve 5.8% - 5.9% return.

For further information & pictures click the link below.

http://www.rightmove.co.uk/property-for-sale/property-50160697.html 

Location, Location, Location! 6.4% Return on The Royals!

This three bedroom house has just come to market with Haarts located on Crown Road, which is ideally positioned on the popular development of 'The Royals'.

Ideally positioned for Clacton town centre & seafront, this family home would make a perfect buy to let investment. With a monthly rental return of approximately £800, this property could offer an attractive 6.4% return, based on a full asking price purchase.

Family homes are always in demand and generally attract a longer term tenant, therefore making, in my opinion, a better investment.

For further pictures and information about this property, please click the link below.

http://www.rightmove.co.uk/property-for-sale/property-50134672.html

What will General Election result do to the Clacton Property Market?

After the shock of the Conservatives returning to power with a majority at Westminster, all the potential issues and possible uncertainties of a hung parliament has lifted the cloud from the Clacton property market.  Talking to other Clacton agents, surveyors and solicitors in the area over the last few days, there are signs this has started a new impetus in the Clacton property market after a subdued six months, when an amalgamation of tougher lending conditions, a natural correction after the strong recovery in Clacton property prices in 2014, and political uncertainty ahead of the General Election slowed demand.

Against the back drop of Labour’s election promises of rent controls and three year tenancies, some Clacton buy to let landlords were waiting to see how these new policies would be implemented before they committed themselves to buying more property for their buy to let portfolio. Now that uncertainty has been removed, the long term picture is very positive.

So, with all that uncertainty now removed, where next for the Clacton property market?  Well with inflation at zero and with the Money markets happy David Cameron is still at No.10, the Bank of England have no reason to raise interest rates until 2016 at the earliest. As mortgage rates are at their lowest levels since 2010, landlords with large deposits will now be wooed by the mortgage companies in the coming months with low rates.

You see over the past couple of years, Clacton landlords have benefited from a booming Clacton job market. Unemployment in Clacton has dropped to 4.8%, as a year ago, 2,059 people were claiming unemployment benefit compared to today’s 1,526. With more jobs and better pay, as the level of rents is directly linked to tenant’s wages, there has been an increase in the rental prices tenants are willing to pay for good quality Clacton properties.

Some landlords might be nervous about Tory’s plans for the housing market over the next five years in terms of tenant demand for their rental properties. One plan is for Housing Association tenants to have the right to buy their property. These kind of tenants were never in the private rented sector and will actually increase the supply of properties in the housing stock in decades to come. The Government ‘Help to Buy Scheme’ has only helped to buy 65 Clacton properties since April 2013. Considering 1,406 properties have changed hands in the last year alone in Clacton, I don’t think it has made a huge difference to our local property market.

The biggest matter, when it comes to tenant demand of rental property going forward, comes from the shift in the mindset and attitudes towards renting itself. Twenty years ago you were seen as a second class citizen if you rented a property. In Clacton, as in the rest of the UK (apart from Central London), renting continues to offer good value for money for tenants.  If you are an existing landlord in Clacton or thinking of becoming one (or as we like to call you, a FTL. A ‘first time landlord’), then I must suggest you seek out specialist advice and opinion. Like many agents in Clacton, we will happily give you our opinion on the current state of the market and the advantages/disadvantages to investing in the Clacton property market if you pop into our offices. However, if time is at a premium, another source of information on the Clacton Property Market is the Clacton Property Blog www.clactonproperty.blogspot.co.uk

Holland seafront apartment with sea views offering 6% return!

This two bedroom second floor apartment has recently gone onto the market with ourselves for £130,000.

This apartment is situated in Lyndhaven Court, Holland-on-Sea, which has a lift in block and offers beautiful sea views, lounge with balcony and even has its own underground parking space.

Properties similar to this would rent for £650 PCM giving you a great return of 6% (ground rent and service charges not included in return).

Click the link below for more information and pictures. It is not to be missed!

 http://www.rightmove.co.uk/property-for-sale/property-52305200.html

Is the Clacton Property Market in crisis?

Since the 1960’s more people have owned their own home than rented but, for many young Clacton people, the dream of buying their own home is dying...or is it? Since the turn of the Millennium, in Clacton (as in the rest of the Country) there has been a significant change in the proportion of people who own their own home in Clacton. In 2001, 79.64% of homes in Clacton were owner occupied, today the figure is 73.45%, a significant decline in such a short time.  Buy to let landlords can find tenants because young people say they cannot afford a deposit to buy unless they inherit money or are given a loan from the Bank of Mum and Dad.

In Clacton, only 41.29% of 25 to 34 year olds have a mortgage. When you compare Clacton against the national average of 35.93%, it just shows how different parts of the country have different housing markets. However, the really interesting fact is this  ...Roll the clock back to 1991 and nationally, 67% of 25 to 34 year olds had a mortgage. After World War II, the supply of properties being built kept up with demand as millions of council homes were built (the most being built in 1950's, surprisingly under Tory Governments!). Also private house building increased in the 1950’s, but especially in the 1960’s and 1970’s, and as the Country  got more prosperous it meant that by 1971, there were more home owners than renters.

However, since the 1970’s, the population has grown but the number of new properties being built hasn't kept up at the same rate, the result is that there have been huge rises of property prices in the early ‘70s, the late 80s and more recently between 1999 and 2004. Interestingly, since the early 1970’s, out of the 34 richest countries in the world, the UK has seen highest property prices rises.

95% mortgages have been available to first time buyers since late 2009, but with property prices rising by 218.7% since the early Spring of 1996 in Clacton, as property prices have been rising and first time buyers have been saving, the amount they have to save is continually rising at the same time. The stress on saving even for that kind of deposit, coupled with the new stricter mortgage rules introduced in 2014, means that most 20/30 something’s in Clacton are renting instead of buying.

The issue quite simply comes back down to a lack of new homes being built. In Clacton, only 806 properties a year are being built whilst the population is rising by 1,572 a year. The supply of new homes has been limited by planning laws, local councils not having the money to build council houses, hard hitting green belt limitations, and our old friend NIMBY’ism.  With a rising population and net migration, especially from the EU, the mismatch between demand and supply is why we have the problem. Until Politicians have the backbone to realise the Country needs a lot more decent homes built, the problem will just get worse.

In the meantime, demand for rental property will continue to grow because people need a roof over their head at the end of the day ......fact.

One bedroom flat with fantastic return in Clacton town centre

This one bedroom flat has just come onto the market with John V Story for £65,000.

It is ideally situated in Clacton town centre providing convenient access to the train station, shopping facilities and the hospital.

This flat would make an ideal investment and with properties like this renting for around £425 PCM, it would give you a fantastic return of 7.8% (ground rent & service charge not included in the return).

Click the link below for more information and pictures.

http://www.rightmove.co.uk/property-for-sale/property-52305179.html

6.26% return on this Martello Bay apartment

We have recently taken on this modern two bedroom second floor apartment for £114,995.

It is situated in the much requested location of 'Martello Bay' and benefits from a modern kitchen and bathroom and even has it's own parking space.

Properties like this rent very well and would achieve a rental of £600 PCM, giving you a great 6.26% return (ground rent and service charges not included in the return).

For more information and pictures on this property, please click the link below.

http://www.rightmove.co.uk/property-for-sale/property-34479855.html

Town centre flat with a 6.6% return!

This two bedroom first floor flat has been marketed today with Connells for £100,000.

This property is an ideal investment as it is situated in Clacton town, close to all amenities, the seafront and railway station and would appeal to many people.

It looks like it has recently been refurbished with a modern kitchen and bathroom, therefore would let quickly with no work required.

Properties similar to this rent for £550 PCM which would give you a great 6.6% return if purchased at full asking price.

For more details and pictures, click the link below.

http://www.rightmove.co.uk/property-for-sale/property-49956361.html

667% Return for Clacton Buy To Let landlords since 1999

Buy to let is essentially different from investing in stocks and shares or putting money in the Building Society. Whilst these other investments (Building Society Passbooks, Stocks and Shares etc) are passive  ie once the  money has been invested it you leave it alone, with buy to let, things are more hands on, in fact it’s almost a business. One thing the landlords I speak to say is the fact that they like buy to let because it is both an investment as well as a business. It is this factor that attracts many of my Clacton landlords – they are making their own decisions rather than entrusting them to others (such as City Whiz Kidzs in London playing roulette with their Pension Pot).

So if you are investing in the Clacton property market, you can earn from your investment in two ways. When a property increases in value over time, it is known as 'capital growth'. Capital growth, also known as capital appreciation, this has been strong in recent times in Clacton, but the value of property does go up as well as down just like shares do but the initial purchase price rarely decreases.  Rental income is what the tenant pays you - hopefully this will grow over time. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return.

I was talking to a landlord who bought a terraced house in the Geranium Close area of Clacton. He bought a very pleasant 2 bed terraced house in 1999 for £45,000. It sold again in January just gone for £120,000, a rise of 166.66% in just over 15 years – a compound annual return of 6.76%.

However, the real returns are for those Clacton landlords who borrowed money to purchase their buy to let property. They have made significantly higher returns than those who paid 100% cash. If the landlord had borrowed 75% of the £45,000 purchase price of the Geranium Close terraced house on an interest only 75% mortgage, he would have only needed to invest £11,250 (as his 25% deposit... borrowing the remaining £33,750), but his £11,250 would be worth today, £86,250  (£120,000 less £33,750 interest only mortgage)... a rise of 667% - a compound annual return of 14.54%... and I haven’t even mentioned the rent he would have received in those 15 years!

This demonstrates how the Clacton buy to let market has not only provided very strong returns for average investors since 1999 but how it has permitted a group of motivated buy to let Clacton landlords to become particularly wealthy. In fact, if this landlord had continued to remortgage the property as it went up in value, he could by our reckoning have had an additional two or three properties (albeit with larger mortgages but greater future potential).

As my article mentioned a few weeks ago, more and more Clacton people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to grow from strength to strength. If you want to know what (and would not) make a decent property to buy in Clacton for buy to let, then one place for such information would be the Clacton Property Blog.

Fantastic 7.8% return!

This two bedroom ground floor maisonette has just come onto the market with ourselves for £79,995.

The property comprises of lounge, kitchen, two bedrooms and bathroom and is situated only 0.6 miles from Clacton train station.

It is being sold with a tenant in situ on an AST who is currently paying £520 PCM which would give you a fantastic return of 7.8%!

For more information on this property please click the link below.

http://www.rightmove.co.uk/property-for-sale/property-37518731.html

Impressive return on this four bedroom house in a modern development

This four bedroom end terrace house has just gone onto the market with Stoneridge for £174,995.

This home is situated in a popular modern development (approx. 7 years old) and appears to be well presented throughout with accommodation split over three floors.

Properties like this rent for around £900 PCM which would give you an impressive return if bought at the full asking price of 6.2%!

Please click the link below to obtain more information and pictures on this property.

http://www.rightmove.co.uk/property-for-sale/property-33137448.html

6% return on this three bedroom house in a sought after location!

This three bedroom mid-terrace house has just gone onto the market with Castles for £148,000.

It is situated in the much requested area of Peter Bruff and looks well maintained therefore, once purchased, could be let out quite quickly with not much work to be done.

Properties similar to this rent for £750 PCM which would give you a 6% return!

For further information and pictures on this property, please click the link below.

http://www.rightmove.co.uk/property-for-sale/property-52113578.html

Two Bedroom Terraced in Fairfield Road

This two bedroom mid terraced house has recently been listed in Fairfield Road, with Sheen Estate Agents for £129,995. 

The property is tucked away between Wellesley Road & Old Road, therefore is very convenient for Clacton town centre & access to A133.

Internally the property looks well maintained with minimal work required, thus meaning a quick turnaround from purchase to tenants moving in. 

With similar properties renting in the region of £650 PCM, if you were able to purchase this property for £125,000 this could return 6.24%!

For further information and pictures click the link below!

http://www.rightmove.co.uk/property-for-sale/property-34594908.html

East Clacton 2 bedroom apartment

This two bedroom apartment has just come to market with Castle Estate Agents for £109,000 located in the popular area of East Clacton. 

Internally the property is well maintained, with modern kitchen and decor, therefore requiring very little work.

East Clacton is a popular area, and this property is located just on the cusp of Clacton & Holland on Sea. A popular area and within close proximity to the popular Holland Park Primary School, this apartment shouldn't hang around too long if snapped up by a buy to let investor. 

With properties of this size and location generally achieving a rental income of approximately £600 PCM, if purchased at £105,000 this home offers a staggering 6.8% return (before any relevant charges taken into account)

For further information click the following link.

http://www.rightmove.co.uk/property-for-sale/property-47178658.html

Are Attitudes to Home Ownership changing in Clacton?

Speaking to a Bank Manager the other day in Clacton, we got talking about the state of the Clacton property market and whether we, as a Country, are turning more and more to the European style of property ownership, where it is the norm to rent as a opposed to automatically buying once you have a good job etc.

Even though a recent report by the Halifax stated home ownership remains a goal for 85% of twenty to forty five year olds, there is information emerging that attitudes in the UK towards renting your own home as opposed to owning it have softened, showing more and more, that renting is being seen as a life style choice.  In fact it is recognised in learned circles that the cycle of renting is also repeated by the fact that people who grow up primarily in rented accommodation are themselves more likely to rent than buy.

The biggest barrier often mentioned to buying a house is the claim that they are not buying property at the moment because of a lack of sufficient wages and by the high level of deposits but like we said a few weeks ago, in Clacton, if a couple, one  on the average Clacton salary of £23,784 pa and the other on the Minimum wage, assuming they had a reasonable credit history they would be showered with lenders offering them a 95% mortgage (a reasonable credit history means they haven’t defaulted on loans, paid all their bills on time nor got any County Court Judgments.

Just because you missed just one credit card payment won’t mean you have messed up your credit score and your ability to get a mortgage) and they would only need to find £7,500 as a deposit to buy a decent semi detached house in an up market area of Clacton or a good honest 2/3 bed terraced villa in the town (depends if you space (terraced) or bigger gardens – semi). ..It comes down to the perceived capability of the youngsters in Clacton to buy nowadays.

Interestingly, when I looked at the Clacton figures, the average Clacton tenant has an older profile (especially the 50 to 64 year olds) than the English and Welsh average, as can be seen from the graph below. I know we have a large number of mature tenants at our agency, but I always thought that was the exception to the rule. Obviously not!  (And that is good news for landlords as they make excellent tenants)

So what does all this mean for Clacton landlords and future Clacton landlords? I honestly believe there is a difference between the hope and perceived capability of the younger generation to buy a home. Although homeownership is seen as advantageous by a majority, many tenants admitted in the Halifax report they are not taking the steps they need to purchase their own home.

As the local authority aren't building any properties in Clacton, people still need a roof over the head, and that is why, as I mentioned a few weeks ago in the Clacton Property Blog, the demand for rental properties will only continue to steadily rise in the coming decade. 

If want to know where the Clacton Property market is heading and where you should (and shouldn’t buy), maybe the one place you should visit is the Clacton Property Blog www.clactonproperty.blogspot.co.uk or send me an email to craigdavis@moreestateagents.co.uk

Semi detached on Old Road with potential return of 6.8%!

This three bedroom semi detached house has been listed with Blake and Thickbroom for £139,950 and is located on the Great Clacton end of Old Road.

This older style semi detached house offers three bedrooms, two reception rooms, kitchen and an approximate 45' rear garden. 

Properties of of this size and location generally warrant a rental in the region of £750 - £775 PCM, so if you were in a position to pick this home up for £135,000, you could expect to achieve a return of 6.6 - 6.8%

For further pictures and information, click the link below!

http://www.rightmove.co.uk/property-for-sale/property-33884514.html