Leicester has been a property hotspot for investors up and down the country for its attainable house prices, building character, high yields and steadily rising, sustainable house value growth. Landlords with houses and flats in Leicester are reaping tremendous rewards so much so that Harry Albert Lettings & Estates has experienced a number of commercial property owners approaching them for advice and information about converting their property into residential use with shared rooms, self-contained units/bedsits and single-unit flats. But, when you decide to purchase a property in Leicester for the purposes of renovation, it can seem daunting, especially if it’s your first project!
We’ve put together these three great tips for property investors looking to invest in Leicester, whether you’re flipping houses or just doing properties up for the purposes of renting them out or even living in them yourself, you’ll find value in this guide.
Open the Door to a Dream Home
By taking on a renovation project, you’ll be creating the next dream home; maybe not for yourself but for your tenant or the next potential homeowner. Doing a property up allows freedom and you will be amazed at how much you can do with a blank canvas.
When taking on a ‘doer-upper’, you should be mindful to do the home up to a standard suitable for the next person and not necessarily wholly to your tastes; you might love the Leicester City Football Club wallpaper in what appears to be the child’s bedroom but what if your Leicester tenants don’t support the dream team? It will alienate potential tenants if you’re intention is to rent the property rather than sell and buyers if you decide to sell.
Instead, you should opt for a neutral decor. Neutrally decorated properties are typically painted Magnolia which is a good colour for the next residents in the property to paint over should they wish to redecorate without the need to white-wash the walls. Of course, if you’re going to be living in the property yourself, feel free to go nuts. Make that house your home!
Tight Quarters or Open Space?
Most people who decide to invest in property are often drawn to shiny new-build properties with all the bangs and whistles but this can be a costly mistake if you don’t budget adequately. New build properties are typically more expensive than a second-hand home and therefore command a significantly higher rent to achieve the same yields as lower value properties in Leicester. For example, a two-bed new build property in Aylestone that Harry Albert Lettings & Estates has been instructed to let and manage is on the market for £900 per calendar month whilst another property of the same size and number of bedrooms but built in the 1970’s is on the market for £650pcm. Higher rents may also mean the property is left vacant for longer as we try to attract higher-income tenants.
The problem is, though these new-build properties do command a higher rent, it will be impossible to renovate a new build without dramatically increasing the chances of devaluing the property. This is why an older property which might need a bit of work could allow your budget to stretch far further.
You’ll also find, with new build properties, that they’re a lot pokier and smaller than you might expect for the price you pay. In Belgrave and Rushey Mead, there are literally hundreds of properties which are like the Tardis from Doctor Who. One of our landlord client’s owns a property on Melrose Street, near Doncaster Road/Catherine Street in Leicester and they have enough room in their back garden, which stretches right behind three other terraced property’s gardens, for three new properties to be built. These could be two-bedroom houses or individual flats. Leicester is experiencing high demand for one bedroom flats, especially. So, by opting for an older property, you’re virtually guaranteed far more space for your money than if you were to go for a new build, not only this, but an older property is likely to be cheaper too!
When you finally take the leap and decide to renovate a property in Leicester, you’ll be safe in the knowledge that you’ll likely be adding value to the property in the way of capital gains, especially if you find a cheap property in Leicester which needs a bit of work to make it habitable. In fact, some renovations can add upwards of £30’000 to the value of your property! However, as a word of warning, it’s important you plan properly before undertaking any major renovations. There may be planning permission and other restrictions in place which could dash your dreams of a profitable venture in property, especially if making a profit from your Leicester home is your primary goal.
If you’re looking to buy and renovate a property in Leicester, whether it’s to sell on for profit or rent out for a regular income, Harry Albert Lettings & Estates are here to help. We can help you to source properties in Leicester at bargain prices and manage the renovations for you, we can then proceed to let and manage or sell the property to!
Alternatively, if you’ve got a plan in mind or have recently finished refurbishing or renovating your rental property, give us a call on 0116 321 4970 to book in your FREE Housing Health and Safety Rating System (HHSRS) Review today to make sure you’re protected and compliant with health and safety laws governing the Leicester private rented sector.