Buy-to-let investors spending more on properties in Gloucestershire, says agent
Buy-to let-investors in Gloucestershire are spending more on properties instead of expecting to pay discounted prices.
Those are the words of Julian Farr, of Farr & Farr estate agents, who said The Festival and Gloucester Rugby were continuing to attract investors to the area.
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Julian said: "Buy-to-let investors want to buy keenly but they don't need discounts. Many are buying at market value. That can easily be seen. Investors last summer were buying the cheapest homes, now they are buying everything."
Julian added big events, particularly horse racing, were continuing to put the county on the map and to catch investors' eyes.
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He said: "Cheltenham Literature Festival is big as well. Historically, the races has always been the biggest event. Gloucester Rugby has grown and grown and grown and is now an internationally well-known club. It's a cracker.
"They put us on the map. These events make Cheltenham and Gloucester what they are. The heart of the Cotswolds does as well. It really is the most beautiful county."
Julian said investing in houses was a better bet than flats in the city. While flats were also lucrative, houses had more capital appreciation and in the long term would make a bigger return. But he said those with a smaller deposit may wish to consider flats or apartments instead.
He said the city was a good place to invest and not to wait any longer to do so as the market reaches full recovery.
"Gloucester is an easy place to invest in. On a £125,000 home you could borrow £90,000 on it and put £30,000 in. You could rent it out for around £625 a month. Mortgage repayments could be £330 a month. So straight away you could earn about £300 a month.
"We feel we are going on for six years now, since July 2007, in this financial crisis. It is the property market that is going to lift us out. There is more confidence out there and the property market is coming back now.
"Clever money would have invested two years ago. In other places like Bath and Cheltenham you need money to invest. But Gloucester is an easier place to buy and there are plenty of tenants around.
"When first-time buyers start to buy again, which they will do, the number of tenants will fall and the lettings market will shrink. But investors will still gain as prices rise."
Julian said two-bedroom houses, whether modern or older, were popular investments no matter the price or location in the city. He said the north-eastern parts of the city were popular towards Cheltenham and the motorway.




10 Comments
by honslknjklyt
Wednesday, March 13 2013, 8:08PM
“Thank God you ain't my landlord Spindles - from experience, landladies are far worse than landlords.
Aside that, yes a landlord should have certain restrictions as it is their house and it is still rental.
Some landlords may not have be paying off mortgages, they have already been paid off by their tenants.
Some landlords can be very good, I wouldn't trust spindles with the attitude like she has and would not rent off a landlady if I could help it. I would rather rent off a landlord even if it meant paying a bit more rent.
I knew a landlord who let a house out. He decorated it and made it so nice. The woman trashed it, he even made adaptions for her wheelchair and put in an electric fan light and all sorts to make her more comfotable. She completely trashed the place and witheld rent.
My heart went out to him. There are a few decent landlords out there who leave their tenants alone and allow their tennants to do what they want so long as they agree to restore it to its original order before leaving. No having to say "please miss can I put a toilet roll holder on the wall".
They are few and far between though and are a barrier to people having a place they can truly call home. Abroad people have more faith in landlords as they don't tend to just throw their tenants out so they can sell with a months notice. Hence why people are happier to rent there.”
by honslknjklyt
Wednesday, March 13 2013, 8:07PM
“Thank God you ain't my landlord Spindles - from experience, landladies are far worse than landlords.
Aside that, yes a landlord should have certain restrictions as it is their house and it is still rental.
Some landlords may not have be paying off mortgages, they have already been paid off by their tenants.
Some landlords can be very good, I wouldn't trust spindles with the attitude like she has and would not rent off a landlady if I could help it. I would rather rent off a landlord even if it meant paying a bit more rent.
I knew a landlord who let a house out. He decorated it and made it so nice. The woman trashed it, he even made adaptions for her wheelchair and put in an electric fan light and all sorts to make her more comfotable. She completely trashed the place and witheld rent.
My heart went out to him. There are a few decent landlords out there who leave their tenants alone and allow their tennants to do what they want so long as they agree to restore it to its original order before leaving. No having to say "please miss can I put a toilet roll holder on the wall".
They are few and far between though and are a barrier to people having a place they can truly call home. Abroad people have more faith in landlords as they don't tend to just throw their tenants out so they can sell with a months notice. Hence why people are happier to rent there.”
by spindles12
Wednesday, March 13 2013, 5:21PM
“by geraint "I'm sure you and your wife are decent..."
Actually, I did say "my husband and I own some properties" so "the clues are there"!
by honslknjklytWednesday, March 13 2013, 11:59AM
"If buy to let landlords had the amount of properties they were allowed to own limited, then this would free up more houses for people who would rather have their own properties and pay their own mortgage than pay someone elses mortgage."
If people want to buy their own houses then what's stopping them buying the houses BEFORE the buy to let landlords get a chance to snap them up, after all, the houses are on the market for anyone to buy, not just landlords. Also not all buy to let landlords have to take out mortgages to buy the properties. Actually, I cannot understand why anyone would pay the same amount or more to rent a place when they could be paying a mortgage for their own place. Actually, I can understand, they haven't been able to save up any money for the deposit so HAVE to rely on renting.
You say "In private tennancy, most of us have restraints on us, especially in newer properties, should we want to put a picture on a wall, we have to e-mail the landlords/letting agents to inform them where the picture will go and how it will be fixed in order to ask permission.
We can't wallpaper or decorate in any way unless we have permission, we can rarely have pets.
How is this a home? It is someone else's house and we live under that daily reminder."
Why shouldn't there be restraints? What landlord wants people banging nails in the walls willy-nilly, it's their house they can set whatever rules they like and if the tenants don't like it then they don't have to take up the tenancy. Pets can be anything from a tank of fish to a pack of dogs so landlords should have a say in what they allow there. One of our tenants asked if he could decorate and we said yes and another asked if they could have two cats which we also allowed so landlords can be quite flexible if asked nicely.
"Landlords build a portfolio, while we build nothing, meanwhile we work hard and pay our taxes so social housing tennants can have the right to buy at knockdown prices."
Who says the landlords don't or haven't worked hard as well? I can also tell you that we certainly pay tax, and far from complaining about landlords people should be pleased that they are providing rental accommodation for the ones who can't afford to buy their own place.”
by DG9999
Wednesday, March 13 2013, 3:30PM
“Buy-to let-investors in Gloucestershire are spending more on properties instead of expecting to pay discounted prices. Those are the words of Julian Farr, of Farr & Farr estate agents-------------Well-being on commission, they would say that wouldn't they? Smart BTL buyers go to an auction and buy outside this most expensive of counties anyway.”
by honslknjklyt
Wednesday, March 13 2013, 11:59AM
“If buy to let landlords had the amount of properties they were allowed to own limited, then this would free up more houses for people who would rather have their own properties and pay their own mortgage than pay someone elses mortgage.
In private tennancy, most of us have restraints on us, especially in newer properties, should we want to put a picture on a wall, we have to e-mail the landlords/letting agents to inform them where the picture will go and how it will be fixed in order to ask permission.
We can't wallpaper or decorate in any way unless we have permission, we can rarely have pets.
How is this a home? It is someone else's house and we live under that daily reminder.
Landlords build a portfolio, while we build nothing, meanwhile we work hard and pay our taxes so social housing tennants can have the right to buy at knockdown prices.”
by geraint2010
Wednesday, March 13 2013, 11:56AM
“I'm sure you and your wife are decent, responsible, landlords Spindles and no doubt you are not alone. However there are also many others who are not and what chance the first time buyer with so many otherwise affordable houses being snapped up by neo Peter Rachmans?”
by spindles12
Wednesday, March 13 2013, 10:26AM
“geraint, not all landlords are "greedy". My husband and I own some properties that are let to tenants who pay below what we could expect but, as they are good tenants, we would rather take a drop in the rent. It's because of landlords that people who can't afford to get on the property ladder have anywhere to live at all so ****ging them off isn' exactly the right way to go. The idea that landlords sit back and rake in the money from "poor" tenants is wrong as there are expenses to go with owning rentable property as well as the risk that it might get trashed if the wrong sort of tenant is renting it meaning money has to be spent putting it right.
I read yesterday that the Government's idea of paying housing benefit direct to the tenants instead of to the landlords has made the amount of rent arrears grow enormously, in one area from 2% to 11%. Apparently the idea was to give tenants a way to increase their responsibility and learn how to budget wisely etc. but it has backfired because there is more money NOT being passed on to landlords than ever before. This stupidity will take rentable properties away from anyone on benefits as landlords will only rent to people who are in jobs and are far more likely to pay the rent, thereby making the housing crisis worse not better.”
by geraint2010
Wednesday, March 13 2013, 9:53AM
“What chance the hapless first time buyer when the shortage of affordable housing and the actions of greedy private landlords profiteering on human misery maintain high property prices?”
by NibNobs
Wednesday, March 13 2013, 8:34AM
“Buy-to-let investors can also be confident of jacking up the rents they charge because they know the demand is there in Gloucester from couples in local jobs on low paid wages of typically £6.50-£8.00 per hour with no hope of ever saving £15,000+ for a deposit for a house!
There are so many single people and young couples currently in rented accommodation who have missed out on the housing boom of the 80's & 90's where it was possible to make more money from the increase in property prices per year than some people can earn in that year.
It's turning out to be a lost generation in property ownership if you are in your twenties (unless you are on a big salary with a really good career path)”
by thomas1996
Wednesday, March 13 2013, 8:27AM
“Buy-to-let investors can also be confident of jacking up the rents they charge because they know the demand is there in Gloucester from couples in local jobs on low paid wages of typically £6.50-£8.00 per hour with no hope of ever saving £15,000+ for a deposit for a house!
There are so many single people and young couples currently in rented accommodation who have missed out on the housing boom of the 80's & 90's where it was possible to make more money from the increase in property prices per year than some people can earn in that year.
It's turning out to be a lost generation in property ownership if you are in your twenties (unless you are on a big salary with a really good career path)”