I hope you are all tucked away from storm Doris today!
On my daily browse on Zoopla this morning this lovely 2 bed maisonette in Canton attracted my attention. It looks in a great condition and could make an easy rental that is ready for tenants to move in to straight away. Located in the heart of Canton it is close to the local amenities of Cowbridge Road.
The other thing I like about this property is that it has an allocaed parking space which is within the gated development. It has just come on the market with Allen and Harris for £135,000 which seems like a fair price to me!
If I were a buy to let landlord in Cardiff Bay today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Cardiff Bay property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Cardiff Bay property prices do drop, the downside to that is that first time buyers could be attracted back into the Cardiff Bay property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Cardiff Bay landlord, almost a blessing in disguise.
Cardiff Bay has a population of 13,464, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …
Cardiff Bay – Accommodation Type and the Number of Occupiers
Owned outright – Cardiff Bay
Owned with a mortgage – Cardiff Bay
Shared ownership (part owned and part rented) – Cardiff Bay
Social rented (aka Council Housing) – Cardiff Bay
Private rented – Cardiff Bay
Living rent free – Cardiff Bay
Yields will rise if Cardiff Bay property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Cardiff Bay landlords add to their portfolio. Rental demand in Cardiff Bay is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Cardiff Bay landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.
I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s nephew and his partner. Both are in their mid/late twenties, both have decent jobs in Cardiff Bay and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a 40 something, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.
So, as 52.1% of Cardiff Bay people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Cardiff Bay – because what else are you going to invest in? Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch – there is nothing like bricks and mortar!
This one caught my attention this morning and might make you a lovely investment. Yes it is on the outskirts of Cardiff but is still a very popular area particularly as it is just minutes from away from the A48 and is easily accessible to both Newport and Cardiff.
It has just come on the market with Allen and Harris for £145,000, now this does seem a little high for 2 beds in the area but the property looks in good condition and has a large rear garden and driveway parking.
I think you could easily achieve a market rent in the region of £650 so based on the current asking price you would be looking at a yield of just over 5%
It’s all about location,location, location with this property!
Located in the heart of the city centre I think this will make a great investment as it is very popular with prospective tenants. The added bonus with this block is that it evens come with an allocated parking space! There are two decent sized bedrooms and an ensuite so would appeal to sharers as well as a couple.
It has just come on the market at a very fair price of £180,000 with Peter Alan and so I think you need to act quickly if you want a chance of snapping this up.
An Englishman’s Home is His Castle as Maggie Thatcher lauded – everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Homeownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.
But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Cardiff Bay buy to let properties as an investment. Cardiff Bay first time buyers were in competition with Cardiff Bay landlords to buy these smaller starter homes … pushing house prices up in the 2000’s (as mentioned in Part One) beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Cardiff Bay landlords fanning the flames of the Cardiff Bay housing crisis bonfire?
I believe that the landlords of the 3,741 Cardiff Bay rental properties are not exploitive and are in fact, making many positive contributions to Cardiff Bay and the people of Cardiff Bay. Like I have said before, Cardiff Bay (and the rest of the UK) isn’t building enough properties to keep up the demand; with high birth rate, job mobility, growing population and longer life expectancy.
According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.
It doesn’t sound a lot of difference, so let us look at what this means for Cardiff Bay …
For Cardiff Bay to meet its obligation on the building of new homes, Cardiff Bay would need to build 63 households each year. Yet, we are missing that figure by around 26 households a year.
For the Government to buy the land and build those additional 26 households, it would need to spend £5,118,929 a year in Cardiff Bay alone. Add up all the additional households required over the whole of the UK and the Government would need to spend £23.31bn each year … the Country hasn’t got that sort of money!
With these problems, it is the property developers who are buying the old run-down houses and office blocks which are deemed uninhabitable by the local authority, and turning them into new attractive homes to either be rented privately to Cardiff Bay families or Cardiff Bay people who need council housing because the local authority hasn’t got enough properties to go around.
The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.
So only you, the reader, can decide if buy to let is immoral, but first let me ask this question – if the private buy to let landlords had not taken up the slack and provided a roof over these people’s heads over the last decade .. where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!
This one bed in the Celestia Development caught my eye this morning and looks like a ready made investment. The property looks in a good condition and is a generous size for a one bedroom apartment so would attract both a single person and a couple. The development is located close to Mermaid Quay while also within walking distance to the City centre so will suit the city workers that love the lifestyle the Bay has to offer.
You should be achieving a market rent in the region of around £650pcm so based on the asking price of £120,000 which will give you a yield of 6.5% – definitely something to consider. It is on the market with Taylors and would be worth a look.
Well it definitely feels like winter has arrived today!
During my browse of Zoopla this morning I came across this 2 bedroom flat in Haxby Court which is just off Schooner Way. Now the reason I picked this one, is not just the price (it is on the market with Jeffrey Ross for a guide price of £124,950) but also it’s location which is a great attraction to prospective tenants. It has the advantage of being within walking distance to both the Mermaid Quay are and the City centre.
Now if you take a look at the photos it is all neutral and looks pretty much ready made for tenants to just move in making it a hassle free investment.
So as I was having a browse on Zoopla last night this two bed in Prospect Place stuck out.
It is being advertised as a tenanted investment opportunity with a yield of 6.5% which sounds very good! It has just come on the market with Knight Knox for a bargain of £132,500! Now there are no internal photos at the moment so I would definitely suggest a viewing to check this is all what it seems but at this price it is worth a look. It has two bedrooms and two bathrooms and similar flats in the development are typically being sold for £145,000 and upwards.
This two bedroom on Harrowby Street which is right in the middle of Cardiff Bay caught my eye this morning. The location is ideal as it just a few minutes walk to the popular Mermaid Quay, where all the restaurant, cafes and bars are so would be very attractive to prospective tenants.
It has come on the market for a reasonable £151,500 and is on with Simpsons Estates. The property has an open plan living room/kitchen and two double bedrooms with the master benefiting from an en suite which is great for sharers.
You should be looking to achieve a rental figure of around £725pcm.
Now like I have said before the Windsor Quay development is definitely worth considering if you are a looking for an investment opportunity. It can get over looked as it is one of the older developments in the Bay but you can get a lot for your money and they still rent out very well.
This two bed in Morel Court has come to the market with Taylors for offers over £140,000. From the photos the decor looks good and kitchen and bathroom is modern which will attract prospective tenants. The added benefit of this one is that it comes with a separate garage which is very rare for a Cardiff Bay apartment!
Take a look at the link below for some more photos