Thursday, 16 November 2017

Another acquisition for the fast expanding Penicuik based The Key Place


The Key Place, the "go to letting agency" across Edinburgh and the Lothians, Central Scotland and the Scottish Borders, specialising in property management and buy to let investment, is delighted to announce that it has taken on PH Young’s letting business based in Bo’ness.

Robert Young, The Key Place’s Chief Executive, commented “We are delighted to have taken on PH Young Lets as, on top of it being an excellent, well run business, it enables us to consolidate our strength in property lettings across Central Scotland.  I can see this being the first of many acquisitions that we make over the next couple of years and, with the regulation coming into the sector next year, I expect that a fair number of property letting agencies will be looking to exit the market rather than go through the hassle of becoming regulated.” 

Thursday, 9 November 2017

Penicuik landlords owe more than £52 million!


The Brits can’t stop talking about property. The hot topic of discussion at the posh dinner parties of Mauricewood, Broomyhill and Milton Bridge’s movers and shakers is the subject of the Penicuik Property market, but in particular, buy to let. These people are buying up buy to let properties quicker than an ace Monopoly player ...... or so it would seem if you read the Sunday papers. So is the buy to let market a sure fire way to make money?  Is it something everyone should be jumping into? Is it a sure fire way to make money? Am I asking too many questions? The answer is Yes and No to all those questions!

Firstly, the government gives tax breaks to landlords, as it allows some mortgage interest payments on a buy to let property to be tax deductible. Also, a landlord only has to flick through Rightmove or Zoopla, pick any property at random and agree a price. Then, find a modest deposit of 25% (often by remortgaging their own home) which for an average Penicuik terraced house, would mean finding £38,830 for the deposit (as the average Penicuik terraced house is currently worth £155,319) and borrow the rest with a low interest rate buy to let mortgage.  Finally, the landlord would rent out the property in a matter of hours for top dollar and live happily ever after, with the rent then covering the mortgage payments, with loads of money to spare and come retirement have a portfolio of property that would have quadrupled in value in fifteen years. Sounds wonderful – doesn’t it? Or does it?

Let us not forgot that the half of one per cent Bank of England base rate is artificially low. The international money markets can be fickle and if interest rates do rise quicker and higher than expected because of some unforeseen global economic situation, that monthly profit will soon turn into a loss as the mortgage will be more than the rent. Even though tenants are staying longer in their rental property, tenants still come and go and my guidance to landlords is they should allow for void periods, plus the maintenance costs of a rental property and of course, agents fees ...... all things that eat into that profit.

Interestingly, by my calculations Penicuik landlords owe in excess of £47 million in mortgages on buy to let properties.  An impressive amount when you consider Penicuik only has 0.04% of all the rental properties in the Country. It really does come down to a number of important factors going forward to ensure you are water tight for the future. A lot of my existing landlords are fixing their mortgage rates. One told me that the Post Office are currently offering a 5 year fixed BTL remortgage rate at 2.74% for 5 years (based on a 75% loan). I don’t give financial advice, so you must speak with a qualified mortgage advisor...... but that sounds very fair!

However, one thing I do know is that buy to let is a long term investment, it’s a ten, fifteen, twenty year plan and property prices will go down as well as up. You wouldn’t dream of investing in the stock market without advice, so why invest in the Penicuik Property Market without advice? We give bespoke detailed advice to our landlords to enable them to spot trends in the Penicuik Property Market before others, enabling them to buy better properties at better prices. For example, did you know that terraced houses are selling for around 7.27% more than 12 months ago in Penicuik yet detached houses are selling for 4.98% more (with every other type in between). This means we can advise on which properties will go up in value better (or lose less if property prices drop), we can also advise which have lower voids and which properties have higher maintenance issues. 

Information on the local property market and ability to process it is the strongest asset we can give you. As Lois Horowitz, the famous author says, “Not having the information you need when you need it leaves you wanting. Not knowing where to look for that information leaves you powerless. In a society where information is king, none of us can afford that”. One place to find information on the Penicuik Property Market is The Penicuik Property Blog, where you will find many articles just like this. www.thepenicuikpropertyblog.com.



#penicuik #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #privaterentedsector #propertyinvesting

Thursday, 2 November 2017

Property investing in Penicuik .... my 5 golden rules


As a landlord myself, I thought I would share some of my rules/tips on finding the right investment property for you in Penicuik and its surrounding areas.

Rule 1 -  location  

My number 1 rule is invest in a town you know. What better town to invest in than the town you grew up in? Now you will know which areas are high in renters and which areas are high in home owners. You will know where the schools are, local shops and importantly the transport links.

Think about the sort of tenant you want to attract – if you are looking for professional tenants then you will need to look at properties which are close to the centre of town. The properties you tend to get close to the town centre are flats or one/two bed houses.

If you are looking to attract families then you may want to look at property that’s away from the town centre with noise and traffic etc and find somewhere which is close to shops, schools and parks.  Penicuik offers plenty of areas suitable for both, you have areas such as Valleyfield, Rullion Road and Mauricewood to name a few and these locations are all great for rentals both families and professionals as the centre of town is not too far away but far enough from all the hustle and bustle.


Rule 2 - motivated sellers

I’m not sure what you think of when you hear motivated seller but what pops into my mind is someone who will take a very low price for a quick sale. When I say low, I mean anywhere between 10%-30% below market value.  Finding these motivated sellers is not easy, you can start by looking at how long a property has been on the market. Usually November seems to be a good time to negotiate the price down on a property as people want to be out and in their new home for Christmas. Another motivated seller is often someone who has inherited the property.

Rule 3 – the figures  

So we have established the sort of tenant you want, you now have the location and a list of motivated sellers. Now you need to make sure all this stacks up financially. At the end of the day you are in this to make money rather than breaking even or being in a loss.

Make sure you do plenty of research on the sorts of rents your potential investment property can achieve – my advice is to give my team a call and pick our brains. We are local to Penicuik and we are landlords. My team and I will be able to give you accurate numbers of the rents you can achieve in and around Penicuik. 

You will also need to set a buffer aside for unexpected expenses, usually this is general maintenance but we have had the odd boiler needing replacing which requires forward thinking. From my experience with my own properties and properties I manage, these often occur when you are undertaking works. Often other issues arise which need sorting out and this will always add more time to the job and it usually means you will go over budget.  But if you do it correctly then you will have a sound solid investment.

Rule 4 – Not a get rich quick

The Penicuik property market has gone down and up in the last 10 years and it’s very difficult to predict what the changes will be and if the prices will change.  As a landlord in Penicuik, think about the long goal. Use this as a plan for the future and the short term ups and downs will not affect you as much.


Rule 5 – Understand your market. 

This is similar to Rule 1 (location) however you can never do to much research, ring other landlords from Penicuik, speak to several local agents. The independent agents can make instant decisions there and then as the owner of the business tends to be close by (you will always find me in the office). They are more likely to sit down and give you their time, even if it means they get no business from it they just love to talk all things property.


There you have it, my 5 top tips to investing in Penicuik. If you are a seasoned landlord or you are just looking to start my team and I are always happy to chat about your goals and plans. We can point you in the right direction and even  accompany you on viewings so you have a second opinion.
If you find yourself passing our office then pop in (the kettle is always boiling). We have plenty of free parking available and I’ll even get the ‘posh’ biscuits out.

Our office address is based at 6 Bank Street, Penicuik, EH26 9BG. Many of my blog readers also email me with RightMove , Zoopla or On The Market links to look at and offer a second opinion so if that’s more convenient my email address is news@thekeyplace.co.uk.

Don't forget to visit The Penicuik Property Blog (www.thepenicuikpropertyblog.co.uk) to view back dated articles about the Penicuik property market as well as property deals in Penicuik.



#penicuik #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #privaterentedsector #propertyinvesting