Category: property market news

The Heatons Property Market – the Last 10 Years

Heatons Property Market

One of my Heatons landlords contacted me last week from Heaton Moor, after he had spoken to a landlord friend of his from Didsbury. He told me they were deliberating The Heatons property market and neither of them could make their mind up if it was time to either sell or buy property following Covid-19. His friend said he would wait to see what would happen to property prices following Covid-19, yet my landlord wanted to pick my brain in order to help him decide what to do.

I said the press are aware bad news sells newspapers and the doom mongers are plying their trade on uncertainty in the world economic situation. Roll the clock back to the Credit Crunch of 2008/9, and there were quite a few landlords in The Heatons who had overexposed themselves with high percentage loan to value buy to let mortgages, backing the hope they would make their money on the capital growth, yet fell foul of a drop in rents and thus got bankrupted (but who could blame them when the property market was rising at 15% to 20% a year in the early 2000’s and banks like Northern Rock were giving mortgages out to anyone with a pulse and note from their Mum).

Thankfully the Bank of England changed the rules on all mortgages in 2014 banning self-certification mortgages, tightening the rules around interest-only mortgages and the requirement around affordability to be checked, plus a tough stress test if interest rates rose. It’s obvious we are going to enter into a recession because of Covid-19, yet this time The Heatons property market is better placed to weather the storm.

However, gone are the days when you could buy any old house in The Heatons and it would make money. Yes, in the past, anything in The Heatons that had four walls and a roof would make you money because since World War 2, property prices doubled every seven years … it was like having a free cash machine.

If a landlord bought a Heatons terraced / town house in the summer of 2000, he or she would have seen a profit of £132,200 to its current value of £214,000, a rise of 161.7%

Nonetheless, if that landlord had bought the same property in 2010, The Heatons landlord would have only made £29,900 profit (a 16.2% increase). Yet since 2010, the country has experienced 31.5% inflation, meaning our Heatons landlord has seen the ‘real’ value of their property decrease by 15.3% (i.e. 16.2% less 31.5% inflation).

And this is my point. Nobody has been complaining about the property market in the last ten years, yet landlords are still worse off in real terms. If we do see a slight dip in property prices because of Covid-19 (looking at the market at the moment I haven’t seen any indication of its slowing down from its post lockdown takeoff), but if we do, The Heatons landlords need to realise property values aren’t the only indicator of whether the property market is good or not.

The reality is, since around the early 2000’s we haven’t seen anything like the capital growth in property we have seen in the past and it’s not predicted to grow at the rates it has previously done either. So, I believe it is high time for The Heatons landlord, pondering investing in The Heatons property to stop believing the hype and do some serious research using independent investment expertise. You can still make money by buying the right The Heatons property at the right price and finding the right tenant. 

Think about it, properties in real terms are 15.3% lower than a decade ago, so investing in The Heatons property is not only about capital growth, but also about the yield (the return from the rent). It’s also about having a balanced property portfolio that will match what you want from your investment – and what is a ‘balanced property portfolio’? Well we discuss such matters on The Heatons Property Blog … if you haven’t seen the articles, then it might be worth a few minutes of your time?  

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Property Market in Lockdown?

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Two weeks ago today, we formally reopened our doors for both Sales & Lettings, and the demand has been simply incredible. A huge number of enquiries, viewings and offers being agreed to both sides, the effects of the property market coming out of lockdown have been noticed.

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Top Tips For Viewing A Property

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When it comes to buying property, it is important to keep in mind that it could potentially be the home you live in for the rest of your life. With this in mind, it is essential that when you view potential properties that you take the time to be thorough and get all the information you can.
To help make sure you don’t miss a thing and make the right choice when you do eventually make an offer, we’ve compiled the following list of tips to help you to view a property like a pro.
Don’t rush
We all feel a bit strange viewing someone else’s home, but as we said earlier, you could be living in this property for decades, so don’t rush through this process! It’s vital that you spend close to 30 minutes exploring the property, asking questions and just getting a good sense of how it feels. If you just wander from room to room, taking a quick look and then moving on, you won’t get a good feel for the property. Taking that little extra time will mean you are well-informed when you come to make a formal offer.

Think about how much space there actually is
When it comes to property, space is one thing you can never have enough of. Whether you’re looking to fit in that Queen-size bed or you need somewhere to store all of the precious knickknacks that you have collected over the years, space is incredibly valuable. Pay attention to the way the current owner has laid out the furniture, as it will provide you with some insight into how to best make use of the property’s available space. It’s also an excellent opportunity to think about how much room your items take up and whether there is any scope for a little pre-move declutter.
Take a walk through the area
When you’re buying a property you’re not just investing in that building, you’re also investing in the neighbourhood itself. If you’re first-time buyers and looking to build a life in this new home, you have to ask whether the area is suitable for your family’s needs. Are there plenty of shops close by? How do the local schools perform? It’s best to wander around the area for a short while in order to see how it all feels, after all, if you’re going to be here for some time, you need to feel comfortable.
Once you’ve taken a good look, take another and maybe another
As we stated at the beginning, when it comes to buying property it’s best done the right way, but even when you do everything right, it’s always best to check things twice. No matter how thorough you intend to be there is always the possibility that you missed a couple of things the first time around. Most would advise visiting a property 2-3 times and at different times of the day – if possible – to see if you feel the same way each time. Buying a home can be very exciting, so it is worth visiting the property a few times.
Don’t forget that your agent is there to help you! Make sure you ask them questions about the property’s history and the local area, as they will be more than happy to assist you with your decision.

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How To Transform Your Kitchen On A Budget To Achieve A Quick Sale

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In often cases, the kitchen is what holds properties back from selling quickly. Not everyone can afford to replace a full kitchen, but with some pointers, and a few YouTube tutorials along the way, you can learn how to make affordable improvements yourself. Without breaking the bank.

A typical 8-unit kitchen that provides 10m2 of storage space can cost at least £1000. A larger kitchen however, requiring 20-units, giving 30m2 could be more like £7000 and that’s not even including the worktops, appliances or installation fees. Besides, if you were going to invest that much money, you’d want it to be for your own kitchen that you can enjoy yourself! With our kitchen guide, you can transform your kitchen space for under £80!

Before we start, you will need: (For the best quality supplies, head to Dulux or Johnstones.)

• Dust sheets! Old bed sheets will do too or these can be ordered online for as little as £1.
• Degrease wipes £2 from any supermarket
• Advanced primer in white £8
• Water based acrylic satin, mixed in any colour you want £9
• Foam roller £4
• Paint brush pack £11
• Mini roller bucket £3
• Knotting solution £7 (if necessary)
• New cupboard furniture, around £20
• Sanding pad pack £4

Step 1. PREP
Start by removing cupboard and draw furniture (handles and knobs.) Use a screwdriver to do so, usually either a flat head or a Philips. Then start sheeting the floor. You don’t want any paint splashes on your tiled floor (use masking tape to secure if you’re worried.) With your sanding pad, start going over the ins and out of your cupboards. Be thorough and make sure all food splashes are rubbed off. Dust down well. Then with the degrease wipes, give everywhere a wipe down. This is important and if done properly will help the paint sit better on the surface.

Step 2. BARE WOOD?

This step is only for those who will be transforming bare wood units. After wiping down, get your knotting solution and with a cloth or thin paint brush, ensure all wood knots are covered well. If you don’t know what a knot looks like, give it a google! We use this so the darkness of the knots, don’t shine through under the paint, especially if it’s a light colour. This dries instantly, so about fifteen minutes later move on to the next step.

Step 3. PRIME.

With a 1.5-inch paintbrush start applying the advanced primer. This removes the porosity creating a smooth coat ready for the following final coats. To get the best outcome do two coats, just to get a good coverage, avoiding any other colour or wood flashing through. Leave around 3 hours in-between coats and overnight for the last.

Step 4. PAINT.
Grab the water based acrylic satin, a clean brush, foam roller and mini roller bucket. This stage can vary depending on what cabinets you have. If you just have flat doors and draws, then that’s easy! If you have grooved or paneled cabinets, then this will require just a little more attention. For flat doors, with the brush, paint the outskirts of the door. Do one door at a time and don’t do a wide area, keep it neat and narrow. Coat the roller well in the acrylic satin and spread evenly over the entire door and lay it off well so there are no bubbles and is evenly covered. Don’t forget to do the side of the opened door as well. Don’t apply any more paint to the roller, just run it up and down and it will cover perfectly. If you want to do inside the cabinets as well then repeat this process.

For grooved or panelled doors, paint with a brush the panels and grooves, if there is an area larger than the width of your roller, roll it. If it is smaller and needs the paint to be worked into it, then stick with a brush. Lay it off well with the roller again to make it smooth and even. Using a foam roller will eliminate any brush marks and will make it look like the cabinets were that colour to begin with!

Make sure all edges are painted. This stage needs two coats, so wait 6 hours between coats and then overnight after the final. You might be thinking this will take up too much time, but I would say it’s much better than having fitters in and leaving you without a kitchen for a couple of days.

Step 5. DRESS.

This is the fun part. Now everything has dried, removed the sheets. To make the kitchen more modern and in keep with the transformation, you may want to replace the furniture. You can get a pack of four handles from Wilko for £6. When putting these on, be careful not to scratch your masterpiece! Dress with a new fruit bowl, a fresh bunch of flowers or some hanging green plants.

There are millions of hints and tips found online. Look through Pinterest for colour inspiration and watch any YouTube videos along the way if you find yourself struggling. Just by doing this can really increase your chances of selling. A major kitchen remodel only returns around 80% on to your investment, a minor remodel like revamping your cabinets, has an 87% return!

For £80, it’s a no brainer.

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interest cut

148 Dataloft inform Editors pick - interest cut

Interest rates have been cut to 0.25% in a bid to shore up the economy amid the ongoing coronavirus outbreak. This is the first time since the financial crisis that the Bank of England has announced an emergency move.

Low interest rates may well help cushion the housing market in the months ahead. Over 70% of homes are purchased with a mortgage.

According to data from the Bank of England, activity in the mortgage market is currently at a four-year high and mortgage rates are increasingly competitive on the high street.

In 2008, interest rates were cut for six consecutive months, falling from 5% in September 2008 to 0.5% in March 2009. Low interest rates helped the property market rebound throughout 2009.

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how to sell your house, step by step

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Are you looking to sell? Sometimes it’s hard knowing where exactly to start. Our step by step guide might look like a lot of information but it can really be a good reference point to help you during this process.
1. Work on your finances
With our mortgage valuation tool you can get an estimate of your property’s worth.

2. Choose your estate agent
You have options. Sell yourself or use local or online estate agents. Do some research, compare estate agents by how quick they sell, how close they get to the asking price and how successful they are. Agree on a fee, aim for 1% plus VAT for sole agent.

3. Get an energy performance certificate
You will need one to provide to potential buyers.

4. Decide how much
Get to know your local market as this will help you decide. Get several valuations. You don’t need to go with the highest either. Buyers like to negotiate so add a 5% or 10% to what you’re willing to accept.

5. Get a conveyancing solicitor
They handle the legal work. Get an overview of how much conveyancing costs.

6. Fill out your paperwork
There is going to be a lot of it!

7. Accept an offer!
Congratulations, the estate agents legally must now pass all offers over to you.Once you’re happy with the offer, formally accept.

8. Work on your draft contract
You and the buyer will have to negotiate-
• The length of time between exchange and completion.
• What fixtures and fittings will be including, and if they have a cost attached?
• Any survey discounts.

9. Contracts get exchanged
This is the process when you become legally committed to selling your property, and they become legally committed to buying from you. When you sell the house, you are responsible for maintaining the property until the sale is fully complete.

10. Move out
It is less stressful to move out before the day of completion if possible. Completion is when the property changes ownership. Once the keys have been handed over.

11. Pay of your mortgageThe mortgage company will have given you and the solicitor and outstanding amount for the day of completion. Now the buyer has transferred the money that will essentially pay off the mortgage for you.

12. Settle with everyone
Once completion has been finalised, your conveyance solicitor will send you an overview covering all their costs, as well as outing the sale price. If you’re buying and selling at the time, you can settle for both transactions at the same time. There can sometimes be a small discrepancy and you may even get a little refund.

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Rental Deposit costs outpaced MASSIVELY by rise in cost of Big Macs!

Slide1 - Rental Deposit costs outpaced MASSIVELY by rise in cost of Big Macs!

For those unable or simply not interested in owning their own home, the single biggest hurdle in securing their ideal rental property can be the upfront cost.

Newly released research has revealed how much we are paying to secure a rental property and how this has changed in the last five years, as well as how this price increase compares to other items throughout our daily lives.

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Buyer Demand Soars

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Recent data released by Zoopla has shown that 2020 has started in supreme fashion for the property market; with buyer demand up 26% when compared to the same period in 2018 and 2019. With such an influx of buyers, those thinking of selling their property have timed it well.  

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rents rise in the uk!

144 Dataloft inform Editors pick - rents rise in the uk!

2019 was a year of recovering rental values following the drop observed in 2018. The DPS (Deposit Protection Service) reports a 1.4% increase in rents in 2019 (Q42018 to Q42019).

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