This page was last updated on 14/10/2020
The area we’re focusing on here covers Huntingdon, Alconbury, and Brampton. This guide is based on the postcodes PE27, PE28, PE29, CB23 and CB24 but we also cover North Cambridge which is a completely different market. If you’re looking to invest there, get in touch and we’ll help you make the most of your investment.
We often get queries from landlords who are looking to start their own buy to let portfolio, or expand what they already have. There are a huge number of factors which determine what makes a good investment, but for those just starting out on their buy to let journey, it can be somewhat daunting when there are so many things to consider. With that in mind, we’ve whittled it down, and here are the 5 things we think you should be looking for to maximise your investment.
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Maxine Lester
07872 836042
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The sold prices we’re working from are from the Land Registry which means there’s a two month delay and we’re really looking at August’s figures – this still gives you a good indication of what property prices are doing in the local area.
Advertised vs sold prices in the PE28, PE29 area
The figures show that it really is a buyer’s market, with properties being priced to sell.
Highlights:
1 beds have gone for 6.5% more than the asking price looking at an average price of £154.000
3 beds have gone for 11% less than the asking price
For 2, 3 and 4 bedroom properties, the average reduction is 9.4%
As you can see from this graph, the best yield you can achieve in PE28 is for a 2 bedroom property at 4.8% with an average monthly rent of £765.
Even with 3 bedroom properties having an average rent of £950 per month, the average yield is 4.7%.
Don’t forget though, yields are subjective and it depends on what work you might want to carry out on the property before letting, as well as other factors.
According to data from Rightmove, Zoopla & on the market, it takes an average of 53.55 days for properties to rent. That’s not our experience at all.
If we look at our September figures, from starting marketing to finding a tenant took an average of 27 days – and that’s including weekends! It’s certainly a good time to be a landlord round these parts.
Sometimes an investment property can look good on paper, but the reality might be very different.
Look at things like:
An Estate Agent likely isn’t going to tell you that there’s an energy consultation taking place which means the lovely little cottage you’ve been looking at with an EPC rating of E won’t be quite so profitable in the future.
Do your research, get in front of the person negotiating the sale and find out as much as you can about the vendor’s position – for example, are they looking for a quick sale because they’ve already had an offer accepted on another property?
For example, in general, there’s a higher turnover of tenants in smaller properties.
Apartments will always include service and management charges, when it comes to tenant change over. Also, since the tenant fee ban generally landlords are now paying for the work carried out for tenants. It’s worth factoring these extra costs in, when it comes to working out what your profits could look like.
Having said this, you might want to invest in an apartment for kids in the future – it’s not all about profit, and that’s what we mean by there being so many motivating factors when it comes to property investment.
You have a budget, and you’re looking to achieve the best yield possible.
When you view properties, have a checklist of what you’re looking for, and mark each element out of 10 to give you an idea of how well each property will fit in with your investment plans.
And finally….
Remember when we told you to find out as much information about the vendor’s situation as you possibly can? This is where it all becomes incredibly useful. Maybe the property has been on the market for a long time, maybe they’re looking for a quick sale. The more you know, the better idea you’ll have over what price they’ll accept.
The better the price you get, the better the investment. It’s a no-brainer! Don’t be afraid to channel your inner Del Boy. (Robin Reliant not required!).
Very professional organisation that gives good service to both the tenants as well as the landlord. Highly recommended.
Roger Steel
Landlord
All staff at Maxine Lester Residential Lettings are trained to a high standard and I have always found Lisa Gadsby very efficien
Phil Green
Landlord
Every time we have contacted Maxine Lester everyone has been so helpful. We have always had any issues dealt with promptly and...
Jake Benstead
Tenant
Excellent service all round, keeping us informed regularly on our property, always contactable and willing to help with any query.
Paula Frame
Landlord
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