reddish and tameside property blog

(covering reddish, dane bank, denton, debdale and gorton)

video blog from broadstone hall road south, reddish

Welcome to the Reddish Property Blog’s first video blog. Today we are bringing you an excellent investment opportunity to purchase 6 apartments being auctioned next week. Take a look…..

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a brighter future for first-time buyers in reddish?

As I’m sure you’ve noticed, things have changed a lot for first-time buyers recently. Government schemes and mortgage requirements seem to change every week, so would-be homeowners have got to keep up. However, for those in the know, there are a lot more options in Reddish than there used to be.

The first challenge awaiting would-be home-owners these days is the deposit for the mortgage. The bigger the deposit, the better the chances of getting a great deal. The minimum required deposit is around 5%, so with an average home in Reddish valued at £114,900 locals will require a deposit of at least £5,700. That’s a fair amount of saving up, given that average annual salaries in the region are £25,700.

The Government has stepped-up to help make saving easier. The newly introduced ‘Help To Buy ISA’ will hopefully make saving for a first home quicker and less painful. Save £200 and the Government will contribute £50 each time.

The Government has also made it easier for first-time buyers to purchase new-build properties. With the ‘Help To Buy’ scheme, they still need a deposit of around 5%, but then the Government loan a further 20% interest free for the first five years, meaning they only need a mortgage for 75% of the property price. In London the loan is up to 40%. After year five they have to pay interest at 1.75% of the shared equity loan at the time they purchased the property, rising each year after that by the Retail Prices Index (RPI) plus 1%. Sell up or pay the mortgage back and they’ll be asked to repay the Government’s share of the loan, along with a share of any increase in the home’s value.

Interestingly, of the 146,500 people who took advantage of the ‘Help To Buy’ scheme between the 1st of April 2013 and the 31st of December 2015, none of them were in Reddish. Low figures are usually down to low house building rates.

Another option for buying a first home in Reddish is shared ownership, which allows a would-be homeowner to part-buy part-rent their property. Back in 2011, there were 139 shared ownership properties in Reddish and given the national growth rate there should be around 164 now.

Reddish shared ownership July 2016

Under this scheme, owners start off with buying anything from 25% to 75% of their home, usually with a mortgage, and paying a monthly rent to a housing association, who will usually give the occupier the chance to increase their ownership share, known as ‘staircasing’.

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how many cars in reddish?

In Reddish, the majority of households own one car (43.1% of all households). This is 0.5% higher then the average in the North West. The next most common category of car ownership in Reddish is no cars (36.8% of all households), which is 8.8% higher than the average in the North West.

 

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Windmill Lane, Reddish with a potential yield of over 7%

This 3 bed property has recently reduced and has the potential to be a very good buy to let investment.

The property does have a couple of drawbacks in the sense that there is no off road parking, it is located on a junction and there is only a small yard to the rear but none of these issues are present once you are inside the property, traffic noise is minimal and the property is extremely spacious with two large reception rooms and three double bedrooms. The décor is also to a good standard and would only need minimal work.

With this property none of the drawbacks outweigh the benefits, for example the house is located on the boarder of Reddish and Dane Bank which is an extremely popular area, the price is £110,000 which is a bargain for 3 double bedrooms and would easily see a rental income of £650 per calendar month giving more than a 7% yield.

The property is on the market with Julian Wadden and can be found on Rightmove using the below link.

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Wharfdale Road, Reddish with a potential yield of over 8.5%

Well its been a slow week for investment opportunities this week and after scouring the property portals looking for something interesting I’ve unfortunately drawn a blank, however I have featured this property in a pervious blog and although I wouldn’t usually feature the same property twice this one has been reduced by £10,000!

At the new price the figures are even more attractive than last time. Basing your purchase price at £75,000 and a rental income of £550 per calendar month you would see a yield of over 8.5%. The property is likely to have a service charge which isn’t mentioned in the advert but assuming it’s £50 or less per month you would still be seeing an 8% return.

The property is on the market with Bridgfords and the details can be found on Rightmove using this link.

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Alderley Road, Reddish with a potential yield of over 6%

This property came to the market today and although in need of some updating should still make a sound investment.

The property’s condition means that the buyer could be faced with spending around £10,000 to bring the house up to date but once fully refurbished the property should rent for around £650 per calendar month which is still a 6% yield based on a total outlay of £130,000. The property is on the market with Phillip James and can be found using the below link.

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how do reddish residents get to work?

An analysis of commuting preferences in Reddish shows that the majority of people use a car to get to work (65.8%). This is followed by bus (17.4%), and then on foot (8.9%). It will be interesting to monitor how this pattern changes over time given the trend in Reddish and everywhere else to more flexible working, i.e. working from home

 

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Moston Street, Reddish with a potential yield of over 6%

This immaculate 2 bed property came to the market today and immediately stood out as a fantastic buy!

As I’m sure you are aware the property market has picked up in the last 12-18 months and it has been increasingly more difficult to find buy to let property for around £100,000 in Reddish and considering such houses usually need refurbishment of around £10,000 and 3-6 months in lost rent while work is carried out makes this house an attractive proposition at £115,000.

The property is located in the centre of Reddish which is always popular for buyers and tenants alike. This house should see a rental income of around £595 per calendar month giving a yield of over 6%, easy money in my opinion.

If you would like any further advice on rental investments in the area, then please visit our branch in the centre of Reddish or give us a call.

The property is on the market with Julian Wadden and can be found on rightmove using the below link.

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52.3% of reddish voters voted to remain in the eu – what now for the 9,086 reddish landlords and homeowners?

It’s 5.50am as I start to type this article and David Dimbleby has just announced the UK will be leaving the EU as the final votes are counted. As most of the polls suggested a Remain Vote, it came as a surprise to most people, including the City. The Pound has dropped 6% this morning after the City Whiz kids got their predictions wrong and MP’s from the Remain camp are using words like “challenging times ahead”.

.. and now the vote has been made .. what next for the 7378 Reddish homeowners especially the 4377 of those Reddish homeowners with a mortgage?

The Chancellor in the campaign suggested property prices would drop by 18%. Using Treasury estimates, their method of calculating this was tenuous at best, but focused around the abrupt and hasty increase in UK interest rates, which in turn would raise the cost of mortgages, and therefore lower demand for property, causing a drop in property prices.… and I would say, yes .. that will probably happen.

Reddish Property Values

Since the last In/Out EU Referendum in June 1975,
property values in Reddish have risen by 1545.1%

The Chancellor in the campaign suggested property prices would drop and whilst property prices did drop nationally by 18.7% between the peak of 2007 and bottom of the market in 2009, when one compares property values today in the country, compared to that all-time high of 2007, (the period before the financial crisis of the Credit Crunch of 2008/9) .. they are still up 10.14% higher.

Stockport pie chart

Another Credit Crunch?

And so, notwithstanding the Credit Crunch, the worst global economic outlook since the 1930s and the recession it brought us, a matter of a few years later, the Government were panicking in 2012/3/4 that the housing market was a runaway train.

Now the same Credit Crunch doom-mongers and Sooth-Sayers that predicted soup kitchens in 2008/9 are predicting Brexit meltdown. Bad news sells newspapers. Stock markets may rise, stock markets may fall, yet the British public continued to buy property in 2009/10 and beyond. Aspiring first time buyers and buy to let landlords dusted themselves down, took a deep breath and carried on buying… because us Brit’s love our Bricks and Mortar .. we need a roof over our head.

However, as mentioned previously, if the value of the pound drops, in the past UK Interest Rates have risen to reverse that drop. However, whilst a cheaper pound will make your pint of Sangria a little more expensive on your Spanish holiday this year and make your brand new BMW pricer .. it will make British export cheaper! Which is great for the economy.

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reddish vale features in greater manchester summer hot spots

It really is great to see our number one attraction, Reddish Vale Country Park, being included in an elite list of Greater Manchester’s recommended Summer hot spots, a list that includes the likes of Lyme Park and Dunham Massey. But once you get down there and see it for yourself it isn’t hard to see why. A good time to visit would be July 17th when they host their Summer Family Fun day.

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