Buy to Let in Falkirk 1st Sep 2016

Landlords have a tendency to purchase in areas they are knowledgeable of in terms of property prices, monthly rents and the local amenities that attract tenants to an area. However, it may well be worth considering unfamiliar territory. Towns on the outskirts frequently enjoy lower property prices, and therefore higher rental yields. And you are on to a winner with Falkirk as property values are climbing steeply too. See accompanying newsletter article ‘Spotlight on Falkirk` for further details.

This month The Key Place identifies 3 fantastic buy to let opportunities for you in Falkirk. We can advise on other investment properties to meet your requirements.

Option 1
14.5% yielding Falkirk BTL property that is definitely worth a look!

The property is a 4 bed upper villa in Hayfield in Falkirk. Hayfield is just the other side of the canal off Bankside.

The property has a large lounge/dining room, an old style fitted kitchen, 4 good sized bedrooms and a bathroom with a shower over the bath. It has double glazing and gas central heating. There is an enclosed rear garden and on street parking.

Based on the pictures, the property needed a bit of sprucing up but probably no more than £10,000 worth of work.

The asking price for this property, which is on the market with Your Move, is offers over £50,000 so let’s say it goes for £55,000. Adding in for now the probable spend needed on the property of £10,000 gets you to total spend of £65,000.

This property is likely to be rented to Housing Benefit tenants – the 4 bed rate is £787.50 pcm.
So that gets you to a whopping yield of 14.5%.

That looks too good to be true I hear you say. Well, probably not too good to be true for the right buyer but certainly you need to go into this one with your eyes open as:
• The property is being ‘Sold as seen’ which means any issues with property are for the buyer to deal with. Given this, you need to do more due diligence, and you need to take more serious legal advice, before you buy.
• The property is effectively a ‘double upper’ (ie first and second floors) with 2 of the bedrooms being in the attic. This will reduce the number of tenants wanting the property given that it is the sort of property that would suit a large family.
• The property does need work doing to it. If you are up for this then you would need to access this carefully to work out what needs doing and how much it would cost. My £10,000 gut feel is just that a gut feel!
• To get this level of rent you are likely to need to take Housing Benefit tenants and you need to be comfortable with this as a landlord.
However, at a yield of 14.5%, it is worth a look!

Option 2

Sometimes various properties come on the market at the same time which presents an opportunity for buy to let investors. There are four 2 bed flats in the modern development in Victoria Road for sale. Having four similar flats in the same development gives a buy to let landlord an opportunity to play each selling agent off against each other so as to drive a good bargain.

The four flats are on the market at:
• Offers over £59,995. This flat is on the market with Your Move Falkirk
• Fixed price £61,500. This flat is on the market with Urban.co.uk
• Offers in excess of £62,000. This flat is on the market with New Neighbours
• Offers over £65,000. This flat is on the market with JSB Gillespie . Interestingly, they say ‘you can never beat the market’ and this is a perfect example of this as this flat, which seems out of line with the pricings of the other flats, has been on the market since May 2016 and it hasn’t sold – this is an absolute age in current market terms!
These flats will rent easily given that they are modern and fairly near the centre of Falkirk You should get rents of £450 - £475 for these flats which is a yield of up to 9% +.
So buy to let investors, go and have some fun negotiating a good deal in Victoria Road, Falkirk!

Option 3
Fantastic 2 bed apartment in Falkirk for buy to let ....



This is an opportunity to grab yourself a ready made investment, with hopefully no hassle. Have a look at this 2 bed flat in Gartcows Place, Falkirk to see if you think it will work for you.

This property is on the market with Purple Bricks at a fixed price of £82,500. A rent of £550 pcm should be achievable on this property. So that gets you to a yield of 8%. Well worth a look!

 

The Key Place is always on the lookout for new landlords. If you would like any information on the services we offer then please get in touch.

The Key Place is also keen to work with people considering buy to let investing. If you would like to explore how The Key Place 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 us.

For other buy to let investment opportunities, follow the Falkirk Property Blog: http://thefalkirkpropertyblog.blogspot.co.uk.