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Top Three Reasons People Rent Out Their Home

Top Three Reasons People Rent Out Their Home

Here at Letters Group we get a flurry of home buyers and sellers at this time of the year. We also get lots of home owners asking about the current rental market and if it is worth them renting out their property instead of selling it.

While everyone we speak to is different, there are some common reasons that people choose to rent out their home, instead of selling their home. We have put some of these most common reasons below for you, but if you are considering renting out your home, or are not sure if selling or renting is the best option for you then contact us directly. We would be happy to chat about your home, your goals and make recommendations for you.

  1. Always Wanted An Investment Property: Some people have always wanted to have an investment property and if they are looking at selling their home, then now is the time to consider taking this first step into owning an investment property. As a homeowner you will have gained a competitive loan on purchasing the house, offering better rates than you would get as an investor looking to buy an investment property. You can also trial renting out your home for a year or two, see how you get on, and make a more permanent decision from there?
  2. Want To Generate Additional Cash Flow: If you have lived in your home a few years it is likely you will paid down your mortgage balance a bit and will have got competitive loan terms. By renting out your home you will be able to increase your cash flow by a couple of hundred pounds each month, and in these uncertain economic times, this extra money can be extremely useful.
  3. Want A Security Blanket: Perhaps you are moving out of your home to move in with a partner, or purchasing a new home as you have moved with work? By keeping your home and moving into a new one, you have the security blanket and know that if it all goes wrong, you always have a property that you can go back to if the job doesn’t work out or the relationship fails.

While renting out your home can be a scary experience as you don’t know who is living in your property, you can work with letting agents in Peterborough, like the team here at Letters Group and we can manage your property for you.

13% On House Prices Expected By 2023

13% On House Prices Expected By 2023

A recent report from CBRE, one of the foremost property consultancies in the UK, has given an, unexpected by some people, relatively upbeat prediction of the housing market in Great Britain over the next 5 years.

We have put together some of the highlights of the research by CBRE together for you so you can quickly and easily see the research that is relevant to you, whether you are buying or selling a home, or renting / looking to rent your property.

  • CBRE forecasts a 1.8% growth in the average price of houses in 2019. While this may be a modest forecast, it is more optimistic that forecasts from other property experts. It is important to note that 2019 transactions volume is restricted because of the growing caution among property owners, buyers and lenders, along with a muted buy to let market.
  • The CBRE consultancy predicts that compound price growth will be up 13.1% by the end of 2023.
  • CBRE warn that while ‘Help to Buy’ schemes currently underpin the new build market, it is likely this will change after 2021 when only first time buyers will be eligible for these schemes.
  • CBRE feels that house prices are approaching the limit that current incomes and credit conditions can support. This means that the ability for buyers to bid up prices has now become, and will continue to be, limited. It is important to note that affordability and mortgage regulation will constrain the price growth of house prices.
  • Speaking on the lettings market, CBRE forecasts that rents will increase by 11.4% by the end of 2023. CBRE add that the demand for rental homes is expected in increase after a two year period, and this in turn will weaken tenant enquiries, more so from younger people in lower-earning brackets.
  • CBRE feel that biggest highlight of private rental landscapes is the growing ‘Build to Rent’ niche. This niche attracted £2.1 billion of investment in year to the end of the 3rd quarter in 2018. This is 51% higher than the same period in 2017. CBRE add that property investment is on a firm upwards trajectory and it is likely that the investment volumes in 2019 will exceed the total of 2018.

If you’d like to know more about the housing market and how it could affect you and your own property or home, then why not call us now. We make it our business to stay ahead of the latest news so we can make sure we help our customers get the most from buying, selling or renting a home in Peterborough.

Are You Financially Ready To Sell Your Home?

Are You Financially Ready To Sell Your Home?

For many home owners, it is all about being financially ready as the biggest sign that you’re ready to sell your home. This often comes down to one main factor; equity!

As we all know, there was a housing meltdown between 2008 and 2009 when millions of homeowners in the UK found themselves with negative equity. This means that homeowners found that they are in a situation where they owed more than their homes were worth.

When you have negative equity, it is a bad idea to sell your home. This is known as a ‘short sale’ and something that, as estate agents in Peterborough, we would recommend against doing. While breaking even on your home is better than a short sale, it still isn’t ideal.

However, we understand that in some circumstances selling your home when you have negative equity is the only option; for example, to avoid bankruptcy or foreclosure.

That said it is no longer all doom and gloom. For the last several years the values of homes have been on the rise. This means that homeowners are building equity on their properties, resulting in homes now being worth more than the homeowner owes. As this trend continues, homeowners will be able to pay down their mortgages, while the value of their home continues to increase.

A report created in the last quarter of 2016 showed that a huge 93.8% of mortgaged homes have a positive equity. It is likely we will see similar reports for the last quarter of 2018 too.

So how can you find out if you are financially ready to sell your home and if you have built up equity on your property?

It’s actually a lot easier than you might think.

Take out your latest mortgage statement and check your current mortgage balance. You then need to check how much your property is currently worth. Take the current mortgage value from the market value of your home and this will tell you, roughly, how much equity you have built up.

While it is tempting to use online valuation sites this will not give you a real idea of how much your home is worth. We would recommend that you call one of our professional and friendly estate agents in Peterborough around to complete an accurate and professional valuation on your home.

But how much equity is enough to be financially ready to sell your home?

Ideally you want enough equity to pay off your mortgage with some left over to put a 20% down payment on your next property. We would recommend this as the very minimum. If your sale can cover closing costs and moving expenses too, or enable you to put down an even large down payment then this is even better for you.

If you’re not sure if you’re ready to sell your home or have questions about putting your home on the market, then please contact us directly. We would be happy to discuss any queries you might have.

2019 Brings A New Year…And A New Home?

2019 Brings A New Year…And A New Home?

We’ve been looking at the most common New Year’s resolutions that people make each year. A national newspaper recently reported the top 50 New Year’s resolutions and we definitely feel that a few of these can be found on our own lists of resolutions for the New Year!

You won’t be surprised to hear that number one was to exercise more, closely followed by eat more healthily, cut down on alcohol, stop smoking and spending less time on internet and social media sites.

While we are unable to help you with the above resolutions, which are reportedly found in the top 10 resolutions made by most people across the UK, we can help with the resolution that was 14th most popular on everyone’s list last year. This was to move home!

January can be a really good time to put your home on the market, or go house hunting or look for a home to rent. The beginning of the year is a time that people take stock of their lives. They look at where they are in life, what they have achieved over the last year, and what they hope to achieve in the year ahead.

Homeowners know that spring can be a very busy time on the housing market and want to have their homes on the market before it gets congested and ideally sold by this time. It can be very hard for your property to stand out in a crowd in spring, but in January there is much less of a crowd of properties on the market, but far more people looking for properties.

In the spring and summer months we see a lot of ‘window shoppers’ who are thinking about moving house, but then go on holiday, throw themselves back into work, and the house hunt is forgotten. People think about moving house in summer, but often don’t make the move until much later in the year.

Many of the homebuyers we meet in the winter months are serious buyers and we often find homes are sold to them with far less viewings and they are keen to get moving quickly.

If you have ‘move house’ on your list on new year’s resolutions for 2019, then call us now and we can have a chat about the properties we have available that may be of interest to you.

Top Tips For First Time Landlords in Peterborough

Top Tips For First Time Landlords in Peterborough

All landlords have been first time landlords once. It is a huge learning curve for all first time landlords in Peterborough as there is so much involved in being a landlord. There are also lots of mistakes that you can make as a first time landlord, so we have put together these top tips to help you avoid the common, and often expensive, mistakes that first time landlords in Peterborough can make.

Rent Is The Priority

As a letting agency in Peterborough we are often surprised at how many landlords do not pursue the rent and late charges. If your tenants are not paying their rent or ignoring your contact when chasing the rent then you need to start the eviction process now, not months down the line.

By working with a professional letting agent they will chase this payment for you to ensure that you get your rent when it is due.

Screen Tenants Efficiently

Screening tenants is really important, it is often that gut feeling you had about a tenant when you handed over the keys, that comes back to bite you on the bum months later. You need to make sure they work at the company they say they work for, that they have references and that they can be trusted to look after your property and will pay their rent on time.

Again, by working with a letting agent, as a first time landlord in Peterborough, we can take away this stress for you as all tenants are screened before they even view your property.

Consider Extra Income Opportunities

Not all properties will have extra income opportunities, but some will. For example you could
consider installing solar panels and then sell back excess energy generated to the grid. Maybe there is an unused yet secure shed that could be rented out for self storage to the tenants or to a local business?

We can look at your property with you and make recommendations for any extra income
opportunities that your property may offer.

Know Fair Housing Laws & Regulations

Even if you are using a professional letting agency, there is no reason that you shouldn’t take the time to learn and understand the fair housing laws and regulations. There can be serious implications if you violate these laws and regulations so read up on them for the peace of mind that you’re doing the right thing as a first time landlord in Peterborough.

These are just SOME of the very many mistakes that first time landlords can make.

Being a first time landlord can be a very stressful experience when going it alone so why not partner up with the team here at Letters Group to help ensure that you are being the best first time landlord you can possibly be?

Why Sell Your House During The Christmas Period?

Why Sell Your House During The Christmas Period?

Many people think that trying to move house over the Christmas period is a big mistake, but in this article we would like to share with you some of the many reasons that this is no longer the case. If you can make your home visible online during the Christmas period, you could be surprised at just how well this could work out for you.

People have lots of free time over the Christmas period; they are often off work for longer than usual. They are also spending more times in their home and with their family, they have the motivation for a change in the New Year and this makes the Christmas period a great time to sell or buy a home.

By making your home visible on all major property portals like Rightmove over the Christmas period you will see your property gets a lot more interest than it could at other times of the year.

Property portals show that there is a massive spike in properties being viewed on Boxing Day.
However, if you are selling your home over the Christmas period you won’t need to worry about us calling you as you’re in the middle of celebrating, opening presents or eating dinner.

We know that Christmas is a busy time for families so we operate a ‘Do Not Disturb’ policy. This allows potential home buyers to click on your property through Rightmove and our website, but not view the property until the home seller is available and wanting people to view their property. In some cases this could be into the New Year.

Once Christmas Day is done, the turkey is eaten, presents unwrapped, chocolate consumed in mass and the Queen has done her speech, people will often turn to their mobile devices and start looking at properties on line.

Where could they be living this time next year?

Christmas time is when people are joined by families and this can often lead to decisions of moving closer to these family members, or in some cases, further away from them. On Boxing Day your property is viewed because people are still on ‘holiday mode’ and want to make changes for their future.

While Rightmove claim that Boxing Day is their busiest day of the year, we would certainly agree here at Letters Group.

If you are considering buying or selling a home during the Christmas period, then get in touch with our friendly team now.

How To Make Your Home More Valuable And Sell Quicker

How To Make Your Home More Valuable And Sell Quicker

Here at Letters Group we encourage our sellers to ‘stage’ their homes. This is a way of preparing your home for viewers and can really help make your home more valuable, but also help to sell your home quicker. We have put together some top tips below that will help ensure that your home is sold quicker, but also potentially add thousands to the value of your home.
Read more

Top Tips To Be A Good Tenant

Top Tips To Be A Good Tenant

Here at Letters Group we love housing good tenants, and our landlords love good tenants too.

If you are a good tenant this will result in a much happier, easier, stress-free life living in your rented accommodation. It also means that when you do leave that rented accommodation that you will have a good referral from your landlord. It means that when you need things fixed or problems arise, because you are a good tenant the landlord will be more willing to help you.

But how can you be a good tenant?
Read more

Top tips to rent or sell a home

Top tips to rent or sell a home

Karen Whyte, a valuer at Aberdein Considine, offers easy-to-follow advice on how to boost your chances of a quick offer

Selling or letting a property can seem a daunting task but it doesn’t have to be this way if thought is given to the simple things.

Read more

Tips for a greener home.

Tips for a greener home.

Andrew Crowther, Assistant Resources and Energy Manager at Strutt & Parker, looks at ways to make a home greener. Here are five top tips to help homeowners to follow the three Rs – Reduce, Reuse and Recycle

1. Water butts

British summers tend to swing from pouring rain to hose pipes bans. One of the best ways to make the most of our occasionally wet summers is by using a water butt. These can be installed in a garden or under the guttering and can store rain water for those days when the hose pipe ban finally takes effect.

A standard water butt can hold enough water to fill a watering can 25 times. If you live in the south east, during the year you could fill up your water butt 450 times a year based on average rain falls. Go for one with a tap installed for easier access.

2. Compost

Britain throws away around £12.5billion worth of food a year – that’s equivalent to around 15 million tons of food, but by using a compost heap, a lot of this unwanted food can be reused.

Compost heaps can be built in the garden and will take a range of foods, leaves, grass cuttings and other garden waste. Not only does it mean throwing less away but it also produces a great nutrient for garden plants.

Any of the following foods are great for the compost heap:

– Fruit and vegetable leftovers and peelings
– Baked goods and bread
– Rice, pasta and grains
– Egg shells
– Old spices

Remember to avoid any meat-related waste or dairy.

3. Up-cycling

It’s all the fashion at the moment, taking seemingly useless household items and making them into something useful – whether it’s funky lights from old tins or transforming a broken shed into a coffee table.

There are plenty of sites on the internet full of great ideas for up-cycling and many can be done at home with the family. It also means the previously unwanted goods won’t be going to a landfill.

4. Sort your bins

While the council might supply just one recycling bin, it’s worth asking for more. For starters, not all recycling should be sorted together with separate boxes for paper, glass and plastics preferable. Make sure you know what days the bins are collected, so you can fill the boxes at the right time.

Finally, it might be worth placing smaller bins throughout the house – the bathroom is often neglected but has plenty of recyclables in the form of old shampoo bottles and used toilet roll tubes.

5. Donate

If you’re planning to redecorate your home, don’t just throw away your old wardrobes, beds and sofas – put them on to Freecycle and give them away to someone who needs them. This saves them from going in to landfill and means their life span is extended by another few years.

Even items that you think have no use any more can be donated to local charities or community projects. Left over paint, unused wood from a building project or old curtains and cushions could help in the renovation of a community centre, or go towards a new home starter kit for someone else.

To find out more about recycling facilities in your local areas, simply enter your postcode on the Recycle Now website.

Strutt & Parker’s recent Housing Futures survey highlighted that recycling services were amongst the top ten most sought-after features people desire in their new home. To find out more about our findings, download the full report here.