Leeds Area Review - 22/04/2021

[frankroberts]

Morning All,

Over the past few weeks I've been touching base with different members of the property hub as well as doing plenty of research on my favoured UK cities and I think it would help me, and potentially other new investors, if I shared a first draft of my Leeds postcode review spread sheet.

Although basic, I've done this so that I can visualise the different postcodes in Leeds with key information in hand to build a picture of which areas I would like to invest in.

The spreadsheet has been built on my key budget restriction of £120,000 (based on a few more months of deposit saving @ 75% LTV). I have then trawled Rightmove to consider what types of property are on the market/SSC in each postcode. I have then noted some key features within the areas and also unemployment rate. This, to me, has helped me visualise some promising areas that suit my requirements.

As I am new to investing, it would be great to get some advise from the forum as to if there're any other aspects of the area's I should be considering? I think the next step for me would be to get out to the the favoured postcodes and start talking to estate agents. Do others agree?

Since spreadsheet files are not compatible with the forum I have had to render the sheet which you may have to "save image as" to view. If this doesn't work then I can email the excel spreadsheet directly.

Thanks everyone!

*Disclaimer* - Other New investors - Although this sheet has been built based on a desktop study, the invest-ability of the postcodes shown are down to my interpretation of the information and opinion so please do your own research.

[Mark Rocks]

This is seriously impressive @frankroberts. Taking 'desktop research' to a whole new level!

In terms of extra things you might want to include, have you checked which postcodes are within the catchment zones for different primary and secondary schools? This can have a positive impact on property prices, particularly if the schools receive a high amount of applicants.

Aside from that, I think you're in a good position to get out to the postcodes you prefer and see what they're like for yourself!

[Damian P]

Hi Frank,

it looks like you've done some great research there!

Whilst I don't think you need to do more research you could consider using market growth data, that looks at recent sales, such as:

1.  https://landregistry.data.gov.uk/app/ppd

2.  https://www.zoopla.co.uk/house-prices/ls1/

3.  https://www.rightmove.co.uk/house-prices/ls1.html?country=england&referrer=landingPage&searchLocation=LS1

However, in terms of fundamentals - as favoured by Rob & Rob - what are public transport links like?  For example, I know only some of those postcodes will include a train station.  But - no doubt - one of the projects the new Mayor of West Yorkshire will want to quickly progress is the much talked about Leeds tram system.  So, if you are looking to hold and seeking strong capital growth you may want to target likely tram locations.  

All the best,

Damian

[frankroberts]

@Mark Rocks Thanks Mark. The school catchment areas are something I’m aware of. I’ll look to update the sheet by identifying the top schools in the area using the UK stats and hopefully narrow down my preferred investment areas even further. I may even make a high level ranking system for the preferred areas, although, I don’t want to fall into the trap of not buying a property if it’s not “perfect” as I doubt I’ll ever find one in my career. 

[frankroberts]

Good evening @damian p, thanks for the feedback. Yes transport links, especially the railway, are somewhat critical in my opinion. I’m looking for a reasonable balance between the two.  Although I fully recognise the importance of capital growth, I want to build a portfolio quickly, relatively speaking, which relies on a high cash flow. 
 

Looking at the tram route, I see no reason to achieve both by, as you say, selecting a property near the proposed tram line in an area which is struggling. I will bear it in mind!

Frank

[Mark Rocks]

16 hours ago, frankroberts said:

@Mark Rocks Thanks Mark. The school catchment areas are something I’m aware of. I’ll look to update the sheet by identifying the top schools in the area using the UK stats and hopefully narrow down my preferred investment areas even further. I may even make a high level ranking system for the preferred areas, although, I don’t want to fall into the trap of not buying a property if it’s not “perfect” as I doubt I’ll ever find one in my career. 

Sounds like a plan Frank. Definitely good to be aware that you don't want to fall into a trap of searching for the 'perfect' property. Not to say you won't find your perfect property one day, but having that image in your head could end up meaning you miss out on an ideal place for something that's ultimately fixable, or shouldn't be a deal breaker.

[Alan Penford]

Hi Frank,

Nice spreadsheet! And some compelling yields there!

Something else you might want to consider in your postcode analysis is the amount of stock for sale.  Particularly if you are planning to lock in on a postcode and 'rinse and repeat' a number of times to build up a portfolio. One way to do this is to filter the Rightmove search results by number of bedrooms and count the approx number of sale (filtering out any stuff you don't want such as retirement, shared ownership, flats/houses etc as applicable). If you find say 50+ properties available then that would be a good indication of enough stock to build up a portfolio.

Whilst you are at it could break down the average yield by number of bedrooms to find where the sweet spot is.

But yes, definitely start speaking to estate and letting agents in your area to help firm up your numbers.

Happy hunting!

[neilmdavies1]

Hi Frank

You have the makings of a good spreadsheet there. Would you mind e-mailing to me at neilmdavies1@gmail.com so I can look at in detail?

Thanks

[frankroberts]

8 hours ago, alan penford said:

Hi Frank,

Nice spreadsheet! And some compelling yields there!

Something else you might want to consider in your postcode analysis is the amount of stock for sale.  Particularly if you are planning to lock in on a postcode and 'rinse and repeat' a number of times to build up a portfolio. One way to do this is to filter the Rightmove search results by number of bedrooms and count the approx number of sale (filtering out any stuff you don't want such as retirement, shared ownership, flats/houses etc as applicable). If you find say 50+ properties available then that would be a good indication of enough stock to build up a portfolio.

Whilst you are at it could break down the average yield by number of bedrooms to find where the sweet spot is.

But yes, definitely start speaking to estate and letting agents in your area to help firm up your numbers.

Happy hunting!

@alan penford Thanks Alan! Its less of a spreadsheet for functional output but more of one simply to present the data in one place. My long term plan is to diversify somewhat between cities, broadening security if a particular area struggles. However, I suppose there is benefits to keeping a portfolio local - is this something you're exercising with success?

Totally agree with the average yield idea, I'll add it to the list for an update. Do you know of a website that automates this process or is it a case picking a test batch and working it out manually?

Frank

[frankroberts]

8 hours ago, neilmdavies1 said:

Hi Frank

You have the makings of a good spreadsheet there. Would you mind e-mailing to me at neilmdavies1@gmail.com so I can look at in detail?

Thanks

@neilmdavies1 Sure, I'll fire it over now. Hope it helps set the data out.

[DezzaT]

Hi Frank

Great spreadsheet and research, looks great! 

If it helps, I can ping you a spreadsheet I created for someone else that was looking to invest in HMOs in certain Leeds postcodes. I don't personally invest there and it's a bit outdated (two years!), but you're more than welcome to look at the data included in it to build on your own one.

It includes things like population size, employment/social class breakdown, housing stock, price/earnings ratio, current/recent sale prices, and room rates.

[frankroberts]

14 minutes ago, DerekT said:

Hi Frank

Great spreadsheet and research, looks great! 

If it helps, I can ping you a spreadsheet I created for someone else that was looking to invest in HMOs in certain Leeds postcodes. I don't personally invest there and it's a bit outdated (two years!), but you're more than welcome to look at the data included in it to build on your own one.

It includes things like population size, employment/social class breakdown, housing stock, price/earnings ratio, current/recent sale prices, and room rates.

@DerekT Evening Derek, yeah that would be great. Please fire it over to frank_harry@me.com when you have a moment! Much appreciated, I’ll catch up with you after a few days once I’ve take a look?

Thanks, Frank

[kristenjones237]

Great job Frank! I've done a similar thing in terms of Leeds postcode research where I looked at Rightmove data over a certain period for terraced properties only and then worked out a yearly % price growth over that period. Seems like you might find that interesting so I'd be happy to share

[frankroberts]

On 5/4/2021 at 7:33 AM, kristenjones237 said:

Great job Frank! I've done a similar thing in terms of Leeds postcode research where I looked at Rightmove data over a certain period for terraced properties only and then worked out a yearly % price growth over that period. Seems like you might find that interesting so I'd be happy to share

Kristen,

Yeah that sounds really useful, can you fire it over to frank_harry@me.com?

Regards,

Frank

[matt-dh]

Great spreadsheet Frank!

can you please email me a copy, kind regards 

Matt 

[harry_h]

Frank

Useful spreadsheet with your data capture there.  Thank you.  I too have recently started looking in the Leeds area with a similar budget. I have also collated data across the LS postcodes including sales info, rental info, yields, available stock, crime rates, growth etc.  Happy to send across if you like. Majority of the information is source from Property Data, who in turn feed directly from the likes of Rightmove/Zoopla (and others) so should be fairly up to date.

Good luck with the investing.

Harry

[frankroberts]

On 5/13/2021 at 7:14 AM, matt-dh said:

Great spreadsheet Frank!

can you please email me a copy, kind regards 

Matt 

Matt,

Thanks for the message. Can I get your email please and I'll send it over?

Frank

 

[frankroberts]

On 5/17/2021 at 11:01 AM, harry_h said:

Frank

Useful spreadsheet with your data capture there.  Thank you.  I too have recently started looking in the Leeds area with a similar budget. I have also collated data across the LS postcodes including sales info, rental info, yields, available stock, crime rates, growth etc.  Happy to send across if you like. Majority of the information is source from Property Data, who in turn feed directly from the likes of Rightmove/Zoopla (and others) so should be fairly up to date.

Good luck with the investing.

Harry

Harry,

Yeah please send through any documents you have! frank_harry@me.com.

I'll be in touch once I've had a read. Thanks Harry!

Frank

[marvinv]

Hi Frank, I've tried to save and look at this excellent document, but it just blurs as I expand, please could you mail me a copy?  It .looks like we are in similar stages of our investment journey!  marvinmin08@gmail.com

Thanks

Marvin

[amy_b]

Hi Frank,

This spreadsheet sounds really interesting, please could you fire over to me? amybrrry96@gmail.com. Thanks!