Friday, 31 July 2015

Use your nouse to negotiate yourself a Peniciuik property bargain buy!


Today’s Penicuik Property Blog is a bit different. 

I have noticed over the last few weeks that there have been a number of flats for sale in Andrew Court in Penicuik.  It got me thinking that having a number of similar properties for sale in an area allows a buyer to negotiate a better price as, for sure, the sellers will know that there are lots of properties like theirs for sale and so may be open to negotiation on price.

There are currently 3 one bed and 1 two bed flats up for sale in Andrew Court in Peniciuk. 

The one beds are:

·         No 4 – I looked at this one in my blog post of 15 July 2015.  It’s a fairly basic first floor flat that is on the market with Stuart & Stuart for offers over £70,000.  http://www.zoopla.co.uk/for-sale/details/37425556

·         No   12 – this is a reasonably presented top floor flat that is on the market with Allan McDougall for offers around £80,000. http://www.rightmove.co.uk/property-for-sale/property-53049590.html

·         No 15 – this is the best presented of the 1 bed flats and it is on the ground floor.  The flat it is also on the market with Stuart & Stuart this time for offers over £80,000.  This price has recently been brought down. http://www.zoopla.co.uk/for-sale/details/36417331

The two bed flat is No 7 and it is a reasonably presented 2nd floor corner flat that is on the market with our friends Stuart & Stuart for offers over £90,000. http://www.zoopla.co.uk/for-sale/details/37425556

Rents for 1 bed flats in Andrew Court are around £500, possibly £525, and for 2 bed flats they are around £600, possible £625.  At these rents, yields of more than 8% are possible on the published prices.

Given that there are so many flats for sale in the block, there is an chance for buyers to negotiate hard over selling prices and bag themselves a bargain which would push the yield even higher!

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Thursday, 30 July 2015

Which type of house should I buy in Penicuik?


Which type of house should I buy in Penicuik to rent out to tenants – a 2 bedroomed one or a 3 bedroom one?  One of our landlords asked me that question this week. The first question I asked them was what were they looking for from the investment – capital growth in the property or a great yield?

Answering this question will help you figure out which properties you should buy... The average asking price of a 3 bed property in Penicuik is £158,200 today compared to £132,100 for a 2 bed one. 3 bed properties achieve an average rental price of £825 per month compared to £650 per month for two bedders.

That’s a yield of 6.3% for a 3 bed against 5.9% for the 2 bed. So surely, the 2 bed semi is the better bet? Well it does offer a better rate of return, but the 2 bed is slightly easier to rent out (less void periods) and will be easier to sell in the future.

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Tuesday, 28 July 2015

A wee bit of TLC needed for this Penicuik bargain!


Today’s star property in the Penicuik Property Blog needs a wee bit of TLC but given the price it is worth the effort.

The property is a mid-terraced house at 98 Cuiken Terrace in Penicuik.  It is near Cuiken Primary School just up the road from Tesco.  The house has a large lounge/dining room, a modern fitted kitchen, 3 bedrooms and a fairly dated bathroom.  The wee bit of TLC is needed to the bathroom and the decor – a fair bit of the property needs re-decorated to neutralise it.

Stuart & Stuart are selling the house for offers over £110,000.  The property has been on the market since the end of March and the price was dropped from the Home Report value of £125,000 to this lower price in the middle of May but is still hasn’t sold.


I would expect you could get £800 per calendar month in rent for this house which, based on a price of £110,000, gives a yield of 8.7% which would make it worth the effort of giving it a wee bit of TLC!

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Friday, 24 July 2015

Should you always take the highest rent possible for Penicuik properties?


We are going big in the Penicuik Property Blog today – big house with big returns.

I spotted this one and thought that it would be an interesting buy for somebody.  Also, it allows me to explain a quirk in the Penicuik property market at the moment.

Firstly to the property.  It is a large, 4 bedroomed, semi-detached house at 19 Cruachan Court which is between Tescos and the River Esk.  The house has a good sized lounge, an expansive fully fitted dining kitchen, 4 spacious bedrooms and a fully tiled bathroom with electric shower over the bath.  The decor is to a high standard – the property is in walk in condition.

The property is being marketed by our friends at Allan McDougall for offers in the region of £140,000.  Further details of the property can be found here http://www.rightmove.co.uk/property-for-sale/property-53098025.html

Now to the quirk.  The 4 bed housing benefit rate in Penicuik is £1,200 and so this property could be rented out to housing benefit tenants for £1,200.  However, if you do not want housing benefit tenants, then I could see you getting only £1,000, possible £1,050 rent for the property.  Either way, based on a price of £140,000, this equates to a healthy yield of between 8.6% and 10.3% so well worth considering.  Which sort of tenant you take come down to your risk profile.

As I have mentioned before, a couple of things to remember about 4 + bed properties.  Firstly the wear and tear on a property generally increases with the number of people living in a property so be prepared for extra wear and tear on a rental property of this size.  Also, the number of people looking for 4 + bed properties is less than for, say, 1-2 bed properties so it may take a bit longer to rent out a property of this size.

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Thursday, 23 July 2015

The Penicuik property market outperforms Dalkeith by 11%


A landlord with a small property portfolio came into our office on Bank Street last week. He lives between Penicuik and Dalkeith, in Rosewell, and has properties in both towns (although interestingly not Rosewell itself but that is a discussion for another day!). He wanted to ask our opinion on where he should his buy his next Buy to Let property.

Looking at Dalkeith, the average property price can be an impressive £192,600 and the average rent is £705 per month. In Penicuik, an average property is £183,700 and the average rent is interestingly £741 per month. The annual yield in Dalkeith could be only 4.4% per year, compared to Penicuik where he could achieve an annual yield of nearer 4.9%.

It made me consider two other towns close by, Bonnyrigg and Gorebridge. In Bonnyrigg, I was surprised to find property values are much higher than in Penicuik and Dalkeith, with an average property price of £202,100. They have an average rent of £823 per month, which could achieve a yield of 4.9% which is similar to Penicuik. The average price of a property in Gorebridge is £179,500, with rents of around £596 per month. This could achieve a yield of 4.0% per year.

It goes to show our town of Penicuik can be a good area for an investment property, but it is a decision that shouldn't be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas of Penicuik can achieve yields of well in excess of 6% per year and in less popular areas they can achieve well in excess of 8%.
If you want to know our thoughts on property in Penicuik, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Tuesday, 21 July 2015

Sun, sea and sangria or family home in Penicuik with 7.4% yield?


Summer is with us so there is not a huge selection of buy to let opportunties at the moment – people are more interested in sun, sea and sangria at the moment than selling their house.  However, this just means that the Penicuik Property Blog’s opportunity antenna needs to work overtime to find a suitable opportunity for you!

Today’s opportunity is a nice, three bedroom, semi-detached family home at 28 Yarrow Court that is being sold by VMH Solicitors. It is a good size and internally it is in good condition including a quality kitchen and bathroom with a shower (always a favourite of mine and more importantly prospective tenants!).


It is priced at £130,000.  When you do your sums against an achievable rent of £800 pcm, this could generate you an annual yield of 7.4%.

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Friday, 17 July 2015

Quality, stone built 1 bed flat in Penicuik


The buy to let opportunities in the Penicuik Property Blog this week are all 1 bed flats. 

Today’s is the pick of them – it is a recently refurbished, second floor flat and it looks stunning.  Stuart & Stuart have photographed it well, even making sure that there is a classy Mercedes outside especially for the photos!

The property is a 1 bed flat at 18d Kirkhill Road in the nice Kirkhill area of Penicuik.  The flat has a good sized lounge/dining area, a high spec kitchen and a quality bathroom complete with shower over the bath.  It has a newly fitted gas central heating system and traditional sash & case windows that suit the stone build of the property.


The property is on the market for offers over £89,950 so let’s assume it goes for £95,000.  It will rent for £525 - £550 which gives a yield of 6.6% – 6.9% – the lower yield reflecting the stone built nature of the property and because it has recently been refurbished.

If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk;; linda@thekeyplace.co.uk).

Thursday, 16 July 2015

How can you find a good property deal in Penicuik?


I was having a cuppa with one of my landlords the other day, when he explained there were no property bargains for him to buy in Penicuik. I politely suggested to him that this was ‘hog wash’ (technical term for ‘surely not true Sir’!) and said that I would find a few examples to show him that there were indeed property bargains to be had, you just need to know where to look. We don’t sell property and don’t charge for our advice so we can give impartial advice without any conflict of interest to our landlords.

Here is what I discovered when I did a bit of digging.

A 3 bed semi detached house in Eskhill sold in 2008 for £185,000. In March 2015, she sold again for £170,000, a drop in value of £15,000 or 8.1% over the whole 7 year period or 1.2% per annum! A 3 bed detached house on Clerk Road sold for £188,000 in April this year. When it was last sold in 2007, it was sold for £205,000 which is a fall in value of £17,000 over 8 years or 1.1% per annum. These are both excellent value properties.

Now I accept that 2008 was the height of the boom so you could argue that the Eskhill property and, to a lesser extent, the Clerk Road property are a bit misleading so I went further back and found some even better examples.  A 2 bed flat in Dykes Road that was bought for £67,700 in 2003 was sold earlier this year for £52,000 which a reduction in value of £15,700 or 23.2% over the period or 2.2% per annum.  Whilst a 2 bed end terraced house in Lawrie Drive that sold for £103,000 in April 2015 had been bought for £112,500 in 2006, a drop in value of £9,500 or 8.4% over the period or 1% per annum.

Also, the price does not necessarily have to fall to get a bargain.  In my final example I found the price actually rose but the property was in a good area of Penicuik and the annual increase in price was small so I consider it to be a bargain.  This house was in Mauricewood Road which is a particularly good part of town. It was bought for £129,895 in 2004 and was sold in March 2015 for £150,000 which is a meagre increase of only 1.4% per annum – I consider this to be a bargain given the area the property is in and the timescales involved.

So there are bargains to be had in Penicuik .... there have been in the past, there are currently and there will be in the future.  The trick is to be able to spot them.  We have detailed information about the Penicuik property market at our finger tips which allows us to spot property bargains that we can recommend to our clients. We don't charge for these recommendations.  
If you want some advice, come and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Wednesday, 15 July 2015

It’s 1 bed flat week for the Penicuik Property Blog


The buy to let opportunities in the Penicuik Property Blog this week are all 1 bed flats and they come from right across the spectrum!

This 1 bed has recently come on the market with Stuart & Stuart. 

It is a fairly basic 1 bed flat at 4 Andrew Court in Penicuik, just off the Queensway, although it does have gas central heating and double glazing.  The description and pictures do not make it clear whether the bathroom has a shower or not so it would be worth checking this.  Also, the bathroom picture does not have a full shot of the WC so I am not able to see whether it has the tell tale sign of being repossession – tape across the WC seat!  Again, worth checking this out.  Finally, the external picture shows that there is a defective communal down pipe and it is worth considering the difficulties landlords sometimes have in getting even simple communal repairs done.

The property is on the market for offers over £70,000 so let’s assume it goes for £75,000.  It will rent for £500 – £525 which gives a yield of 8% – 8.4%.

If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Friday, 10 July 2015

Easy 7.6% yield on 2 bed flat in Penicuik


If Tuesday’s buy to let opportunity was a wee bit specialist, this one is mainstream!

This property has been on the market with Allan McDougall since the end of May, with an asking price of offers around £95,000. It's a 2 bedroom upper villa in Carlops Crescent in Penicuik. This property would easily rent for £600 pcm but you may get more.  At rent of £600 pcm and a price of £95,000, you are looking at an annual gross yield of 7.6%. 


The property is in very good condition throughout and it may well have been done up for selling – it has that look about it.  I would note that it is an upper villa so it will be less attractive to people with small kids and the ‘kit’ that goes with small kids eg buggies.

If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Thursday, 9 July 2015

Penicuik’s Wyvis Park property market outperform Namur Road’s by nearly 55%


Last week, a couple from Jackson Street came in to the office to discuss potentially investing in property for Buy to Let. One of the most important things you will consider before investing is the balance between annual return/yield and the annual value increase/capital growth. Namur Road in Mauricewood is one of Penicuik’s premier roads to live on. It is one of the most sought after places to live on the Edinburgh side of Penicuik. The average house sells at around £220,000 and rents are roughly £900 per calendar month.

With this in mind, it was a surprise to find that houses on Wyvis Park, off Eastfield Farm Road in Peniciuik, have outperformed those on Namur Road. This is because a house in Wyvis Park can be bought for around £110,000 and the achievable rents can be around £700 per calendar month.

The yield which could be achieved from property on Wyvis Park is around 7.6% per year. When we compare this to the possible 4.9% on Namur Road, it is nearly 55% higher in Wvyis Park.

However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a house in Wyvis Park in 2005 was £93,697, which has since risen by 19% in the last 10 years. A house on Namur Road in 2005 was £140,750, meaning the value has increased by an impressive 57% in the same 10 years.

Having this detail of information at our finger tips, allows us to spot trends in the local market, which then enables us to give the very best advice to our clients. We don't charge for that advice.  If you want some advice, come and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Tuesday, 7 July 2015

8.3% yield on large family home in Penicuik


This is one is an interesting buy to let prospect although, given it’s size, a bit more of a speciality one.

This property is a semi detached, 4 bedroom house in Cuiken Terrace in Penicuik, not far from Cuiken Primary school.  It is well presented although it looks like the fundamentals of the kitchen and bathroom have had less attention than the eye catching decor, carpets and harling.  It has been extended on the ground floor, hence the 4th bedroom.


The property is being marketed by Allan McDougall for around £145,000.  Rents for 4 beds are a wee bit tricky as the housing benefit rate is £1,200/month whereas the private rate is around £1,000/month.  Sticking with £1,000/month gives you a yield of 8.3%; a rent of £1,200/month give a very healthy yield of 10%.

The property went on the market on the 12th of June.  I see that a 3 bedroom semi in the same street that was put on the market on the 8th of June at offers over £145,000 (ie less accommodation, similar price) is under offer so do not hang around if this property interests you.

Before I sign off I need to say a couple of things about 4 bedroom properties.  They can take a bit longer to let given that there is less demand for this size of properties – you need to have a fairly big family to need 4 bedrooms!  Also, the greater number of people in a property can increase the wear and tear.  This is why I mentioned at this start of this piece that this is a bit more of a speciality buy.

If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Friday, 3 July 2015

Get in quick for this Penicuik BTL house


Calling all landlords!  Get in quick, this won’t be around for long as the property is in a popular part of Penicuik, it is fairly good inside and it is reasonably priced.

This property is a three bedroom family home in Glaskhill Terrace near Tesco and it is being sold by Allan McDougall. It is a good size and internally it is in great condition including a quality kitchen and bathroom .... although some of the decor may need to be neutralised a wee bit!


It is priced at £110,000.  When you do your sums against an achievable rent of £800 pcm, this could generate you an annual yield of 8.7%.

We hope you find our posts useful.  If you would like some advice with your potential investment, please come and see us in our offices (6 Bank Street, Penicuik), call us (01968 674601) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

Thursday, 2 July 2015

What type of property in Penicuik sells the best?


Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why?  Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to. 

Bearing this in mind, last week, a couple from Milton Bridge popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.

A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but of the 6,627 households in Penicuik there are 90 properties on the market for sale. Of those 90 properties, 56 properties are fully available on the open market waiting for a buyer and 34 have buyers and are sold subject to contract. That means 38% of property on the market has a buyer in Penicuik (interestingly in Dalkeith 31% of properties on the market have a buyer and in Edinburgh 44%).

However, delve deeper, and in Penicuik today, 29% of detached houses on the market have a buyer and great news for terraced house property owners, as 45% of them have buyers.  Semi detached houses fair even better, with 14 of the 22 on the market now having buyers (making 64%). The properties that appear to be sticking though are flats at a comparatively lower 19%.

We are always giving advice to our existing and new landlords in Penicuik on what to buy (or not as the case may be).  Having this detail of information at our finger tips, allows us to spot trends in the local market, which then enables us to give the very best advice to our clients. We don't charge for that advice as we have plenty of opportunity to earn money by finding the best tenants for our landlords in the years to come on the investments we have advised on.  If you want some advice, come and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).