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Tuesday 16 December 2014

What will next year's property trends be in Oxford?

I had an interesting chat with a landlord who uses another letting agent in the City after he popped into our office for a coffee whilst his wife was doing some last minute Christmas shopping (Hmmmm, maybe it is time I started buying mine!). We got talking about the Oxford market and thought other landlords might be interested.

You see, property values didn’t stop dropping in Oxford until January 2013, so after a strong run over the last 20 months, the ever upward drive of house price rises has started to turn with increases now at an almost standstill for the first time since the start of 2013.
Now it could be said this easing of the housing market in Oxford can be attributed partly to the time of year (last year property values in Oxford didnt move between November and December), it is obvious that estate agents in Oxford are wary about the direction of the market as a result of the not as strong demand and fewer house sales.

With the uncertainty of a possible interest rate rise, new mortgage rules, a general election on the horizon and recent warnings of a house price bubble. Although the main indicators suggest that buyers will start to gain the upper hand, especially with the new stamp duty rules announced recently by George Osborne. However, there are many homeowners who don’t need to sell and won’t bother unless it’s economically beneficial to do so, but most homeowners are homebuyers, so what they lose with one they gain with another.
This is all good news for landlords looking to buy rental property with the changes in stamp duty and later in 2015, the new rules regarding pensions, where you will be able to take money out of your pension pot to invest in property (see my blog for bargains folks!). However, at the same time, I would say don’t just buy any old property in Oxford. First time landlords need to be cautious. The doubling of house prices every seven to ten years which has taken place since WW2 doesn’t seem to have been seen since the mid 2000’s. Sure, there is evidence that properties continue to appreciate but the likelihood of the property market increasing at the same levels as the past are questionable. That said, the wheels turn slowly at present but they do turn. There are plenty of bargains and very sound investments to be had out there if you know what to look for, other than a pretty looking property.

That is why in the New Year, due to the demand, I will be continuing to offer my advice to new and existing Oxford landlords, irrespective of whether you are a self managing landlord (ie you do it all yourself), landlords with other agents, people who are thinking of becoming a new buy to let landlord in Oxford for the first time in 2015 and finally our landlords that already let us manage their properties.

May I take this opportunity to wish you all a very Merry Christmas and a prosperous 2015.

Monday 15 December 2014

Still there for the taking in Kidlington

You may recall my recent investment alert about this one on the 24th November -

 http://theoxfordpropertyblog.blogspot.co.uk/2014/11/one-bedroom-house-in-wilsdon-way.html

and it is still available.

My recent note was that it needed work doing to it to bring it to lettable standard. Well here is a snippet of what you could end up with if you do it right:


WILSDON WAY REFURB
WILSDON WAY REFURB











Our client purchased this one in the same dated condition in February 2014 for £162,500. They spent £2000 on refurbishment and ended up with a rent of £775 per calendar month. After total cost they have a 5.4% yield. A year on and this would fetch £825 - £850 which send its yield through the roof. It has a very healthy capital appreciation as well if you consider that this one is correctly priced around the £185,000 mark.

Call me if you would like to know more.

Best regards

Richard

Friday 12 December 2014

Another cracker in central Oxford

BRIDGE STREET, BOTLEY ROAD, OXFORD
Merry Christmas all!

Recently reduced in price recently, this would make a great investment. Currently on with Oxford Apartments at £395,000 it would command a rent of £1395 per calendar month which brings your gross yield out at 4.2%. My personal thought on this one is that if you can get away with an offer of around £375,000 to £380,000 then you've done really well. I know the seller is very keen to move this forward (insider info available folks!)

As you might be able to tell it needs little doing to it. It has been beautifully finished and this will be a real draw with potential tenants, especially couples I would think.

Built in 1999 and being so well appointed should also keep the maintenance costs down year on year.

Cherry on the cake is always good indication that a property appreciates well. Well this one sold on 6th May 2010 for £315,000. Its present day value demonstrates a 20.25% appreciation which is good going in our economic climate. Not enough Oxford houses = solid house prices!

For more details on this please call me or if you are looking book in to see it. Go on, its Christmas. Its important to treat yourself now and again!

From your friendly neighbourhood property guru.



Monday 8 December 2014

Oxford Investment of the week

Gordon Woodward Way, Oxford

They just keep moving forward on this development!

Internally sound throughout and in neutral effect, it is ready to go for tenants. It has fairly decent square footage for a one bed at 439sq ft and a Living room (open plan) and bedroom size.

It is going for £245,000 with Thomas Merrifield and you can expect a rent of approx £950 per calendar month for this (furnished of course). It has a 6 monthly service charge of £577.80 and an annual ground rent cost of £275. New stamp duty charges apply folks so there is a saving of £50 from the old arrangment (hey it all counts!)

Based on the rent you will see an annual return of £11,400. Your deductions stated above in addition to my estimated 'other' costs are as follows:

  • General repair and maintenance (approx) - £500 - £1000
  • Void period allowance - Buy to let states a 3 month allowance. Not happening on this sort of property. I wouldnt expect to cater for 3 weeks let alone months!
  • Utility charges (out of tenancy) - I have calculated approximately as there is no other way and based on the anticipated time if this scenario were ever likely. 

I approximate that you are looking at an annual return of £9200 and on a final note in November 2009 these 1 bedroomd apartments were going at around £188,000. Not a bad appreciation in 5 years with a double dip behind us eh?

Best regards

Richard

Wednesday 3 December 2014

Oxford Property Newsletter November/December 2014

Morning folks,

I hope you are all getting into the festive spirit When I see the truck I know its the time to get in the mood!

Please click the link to view my wonderful gift to you all.

https://www.dropbox.com/s/pofn1v9ky6fu4hw/Nov-Dec%202014.pdf?dl=0

Merry Christmas.

Richard

Tuesday 2 December 2014

The Rise of the ‘Part-Time’ Landlord





Britain is seeing a boom in ‘part-time’ landlords where people are letting properties on the side to boost their main income, recent surveys has suggested.

It found that more than one in twenty (7%) British adults rents out a property to supplement their income and receives an average monthly rent of £678, equating to nearly £28 billion a year across the country.

Landlords in London and the South East (that's us folks!) collect the highest rents at £1,079 and £816 respectively, followed by the West Midlands (£678) and East Anglia (£676). Approximately 60% of this is spent on borrowing costs, management fees and maintenance costs, leaving landlords a healthy pre-tax profit of 40% on average.

The trend is mainly being driven by people moving to a new home and then renting out their old one. In fact, over half (55%) of these landlords are renting out properties that they never intended to, often because they wanted a bigger property(15%), they had to move for work (10%) or they wanted a garden (8%). One in twenty (6%) landlords say they ended up renting out a property because they moved in with a partner and did not want to sell or couldn’t sell their own.

Renting out a property can be a great way to cover your costs if you are unable to sell or want to hold on to a home and make some extra money from it, but it is not without risk. Landlords not only need cover for any damage to their property but they also need to think about their tenants and how they will house them if the property becomes uninhabitable, as well as the lost rental income.

If you are thinking of renting out a property you should check the current regulations for letting properties in your area and make sure you have the right cover in place. Assuming you carry out all of the necessary checks then renting becomes a very viable option.

Regards

Richard

Monday 1 December 2014

A little gem in Cowley

Lizman Court, Silkdale Close, Cowley

So here is a good un ladies and gents.

On with Chancellors for a 'fixed price' of £169,000 you can expect to get £750 in rent. It is a small flat but has been very well appointed with good use of the furnishings and is kitted out neutral meaning there is not alot you would need to do with it on completion.

A yield of 5.2% is on offer and in July 2014 a one bed flat, very similar to this sold for £150,000. A jump of £19,000 in a few months is not too shabby on the appreciation me thinks!

Happy hunting folks.

Tuesday 25 November 2014

Rent Vs Buy in Oxford - Which is best?



An intriguing question, yes? Or one which would appear patently obvious to answer? Surely we are all in this to own our own property one day rather than paying out large sums of what is essentially ‘dead’ money as we like to call it. Or is there a little more to it than that?

Let’s firstly look at a typical sale.  In Greater Leys, Oxford there is a 2 bedroom mid terrace house for sale at £230,000. Working off a typical mortgage rate of 3.5%, with a 30 year repayment plan and based on an initial deposit of £12,000 (5%), the monthly repayments would be £979. Over this period the total repayable sum amounts to £352,400.

Turning my attention to the rental side and this property would fetch approx. £950 per calendar month. Over a typical 12 month tenancy this would cost a tenant £11400 in rent. Calculated over the same mortgage period and renting this property has cost the tenant £342,000.

In this case the difference between renting and owning is just over £10k so it would appear as though the answer is obvious. Buying must be the way to go. The sales market must be booming, but yet in a lot of cases it is not, and the number of people choosing to rent continues to grow. Besides the numbers, it clear that a certain percentage of people still favour renting than buying. The National Centre for Social Research report, 2014 backs this up pointing to a shift in attitudes from previous generations when buying at the first opportunity was the ‘done thing’.

Although in pure monetary terms, buying seems like the best option, first time buyers are clearly also considering the risk associated with owning their own property.  I point to the some of the following examples of why there is still a reluctance to buy:
  • It’s a big financial commitment –first timers need to be sure they can afford what they’re taking on.
  • When interest rates rise, repayments will also go up. It’s important to know how much a rise would be.
  • New homeowners also need to be sure you can afford maintenance costs such as replacing a boiler if it packs up or fixing a leaky roof. If you stretch yourself too much when you buy you may resent not having money for meals out, holidays and entertainment
  • You have less flexibility than when renting. For example, if you want to move for work or personal reasons selling up and moving on is far more expensive if you own as you’ll have all of the associated estate agency and legal fees. Also bear in mind that it may not always be easy to sell your home – it’ll be dependent on what’s happening in the market
  • If you’re living with someone else and split up, the process of sorting out the property will be far more complicated and expensive
Buying and owning your own home is certainly what the majority of us continue to strive towards, and but now more than ever ‘Generation Rent’ continues to gather considerable momentum and shows no sign of slowing down in the future. No doubt this will be welcomed news amongst Oxford’s landlords and investors. 

For your Oxford Market property update please visit my blog at www.oxfordpropertyblog.co.uk

Monday 24 November 2014

One bedroom house in Wilsdon Way, Kidlington

WILSDON WAY, KIDLINGTON

Afternoon all,


This one aint bad at all, but it does need modernising throughout which will come at cost, but on the plus side, it is not a big property and I anticipate an outlay of approx £5k for this. It would include new kitchen and bathroom in addition to recarpet and repaint throughout to bring it to standard.

Assuming this is done you can expect a rent of £850 per calendar month and based on paying the asking price of £185,000 this will see you at a very healthy 5.4% yield.

This will let every day of the week and twice on a sunday! I recently had a one bedroom down here and it let in one day. Its in a cracking little cul-de-sac. Safe and quiet with a real community feel which makes it that more appealing to tenants.

You will find this one on with Chancellors, Kidlington office.

Any takers?

Tuesday 18 November 2014

Why Wolvercote??

THE TROUT, WOLVERCOTE
This morning I find myself trawling through Oxford's local rags this morning in search of some inspiration on my next target location when I notice a beautiful looking one bedroom cottage to rent in Wolvercote, North Oxford. As I run deeper into this area of Oxford it becomes clear to me that not alot has come up in the last year for sale or for rent. So is this a desirable area or not?

Wolvercote has many redeeming features, and as the locals will tell you, there are plenty of reasons why property retention is rife in this area. From the pubs, great walks and great scenery, right down to the period housing ripe for renovation and a weekly farmer’s market held on Sundays, there appears to be something for everyone.  The area is also likely to get another boost early next year when the Oxford Parkway rail station at Water Eaton opens, providing fast train services to London every half hour.

Young families are flocking to the area because of the highly rated schools (schools again folks!). Young parents are frequently seen in Wolvercote’s community café or in one of the two local playgrounds which gives the area a real community feel in addition to the 14 th century parish church and post office.

A look into its housing market shows 5 available properties to buy in this location. Only 9 properties have sold in this location since the beginning of 2014 and there has been a total of 14 properties available for let in the same period. One particular 2 bedroom mid terrace property on Godstow Road sold for £190,000 on 26th September 2003. A decade later the same property sold for £250,000 on 29th November 2013.

From an investment point of view Wolvercote appears to offer some steady figures. Its capital appreciation ticks over well with the yield holding its own in most cases. It is the volume of transactions in this location that tell me people retain property in this area and the lack of activity suggest this area is a hugely popular place to live.

One of Wolvercote's redeeming features: 
The Trout is a 17th century building that has been stylishly refurbished to make it the perfect place to find a cosy corner and take time out whilst enjoying some of our Chefs' seasonal dishes and a great selection of wines, ales and lagers.Inside you will find roaring log fires, a unique dining room and comfy armchairs to while away the afternoon. There is also a great outdoors area for those lovely summer afternoons.

If you are currently renting or thinking of purchasing for investment please come and see me at our office in Woodins Way, Paradise Street.

Best regards

Richard

Monday 17 November 2014

A great opportunity in Sherwood Place, Headington

SHERWOOD PLACE, HEADINGTON

1 double bedroom and a good sized second bedroom, first floor, allocated parking on for £235,000 (guide price) with Chancellors, Headington.

It will fetch about £1100pcm on a furnished basis and needs very little doing to it.

A yield of 5.7% and the capital appreciation looks pretty good as well. In 2010 it sold for £183,000.


Psssst, decent management charges for this block as well so it gets a thumbs up from me.

Why wait folks? If you are buying or looking to buy, go for it!

Tuesday 11 November 2014

Property Flips and Flops in Headington


For those of us with a keen eye on the property market I have enclosed some recent activity in the OX3 area prodominently covering Headington and Marston. Please click here to view

For all the latest property and investment advice please give me a call or visit my blog at www.oxfordpropertyblog.co.uk

Best regards
Richard

Tuesday 4 November 2014

Buy to Let Guide 2014

Forever in my quest to be useful to my readers I enclose this years Buy to Let Guide 2014 and apologies for those who have this or have seen and read it already.

Click on the link and away you. For more local Oxford advice please seek me out!


http://www.moneysavingexpert.com/redir/2cd75d80



Monday 3 November 2014

Investment opportunity in Ellington Court, Oxford

Afternoon ladies and gents.

So I have been surfing the property portals for the latest bargain and I stumbled on this little cracker (and it is folks)

Currently on with Chancellors at a guide price of £230,000 this will fetch at least £925 per calendar month on the rent. It needs little or no work doing to it either.

The location itself is pretty good and with over 40% being privately rented it is clearly a target location for investors, and with a 4.8% yield it is not hard to see why.

A brief look into the selling history of this development shows a 2 bedroom flat sold on 15th October 2013 for £184,500. A year on and look at the difference. Ok so it might only have had one bathroom Vs this one which has the en-suite but since when was a bathroom worth £45,000?!!

I have a few in this development and their lettings history is one to certainly be proud of.

Wit many agencies suggesting prices are where they should be right now, this one will tick the main boxes:

  • Good yield
  • Capital Appreciation looks promising
  • Low maintenance
  • Regualar let (minimal void)

What more would one ask for?!

Thursday 30 October 2014

Investment bargain of the week

GLYME CLOSE, WOODSTOCK
WOW!

Buy, buy, buy! This one is a cracker with great returns!

First thing is first, let's look at the inside, and there a couple of things I would change, notably the carpet to a neutral coluring. Other than that a lick of paint throughout in neutral colouring will bring this right up to standard. the kitchen and bathroom are good and that second bedroom is not too small either.

Currently on with Scott Symonds for £175,000 (guide price) this will hit a rent of £925 which, if purchased at said price gives you a whopping 6.3% yield. Even if you have to go in above at, lets say £180,000 it still gives you 6.1% return.

These ones a good from all angles too. Not the prettiest block to look at but the maintenance chrages are reasonable and they sell quickly as well. The last one to sell went at £185,000 in May of this year. Just before the turn of the millennium it was going for £64,950!!

Progress me thinks!

Tuesday 28 October 2014

UK Landlords Face Legislation Change for Immigration Checks.

The NLA (National Landlord Association) is currently calling for all UK Landlords to ensure a prospective tenants immigration status is fully checked ahead of the introduction of new legislation.
As of October 2014, a scheme aimed at targeting illegal immigrants renting private accommodation in the UK is being rolled out. The first area to pilot the scheme will be the West Midlands, with it being enforced fully in the rest of England, Scotland and Wales in early 2015. What this change in the law means is that if a landlord fails to check a tenant’s status and they are found to be living in the country illegally, then said landlord will be liable to a fine of up to £3000.

The Home Office are yet to release the specific information regarding how the scheme will be enforced and how tenants can prove their right to rent property in the UK, but it is expected that the following documents will need to be produced by prospective tenants:
  • A passport or Birth/Adoption Certificate
  • A National Insurance Number
  • A Naturalisation Certificate or Right of Abode Certificate.
Citizens of the 27 counties of the EU (as well as Iceland, Lichtenstein, Norway and Switzerland) are expected to be required to produce a Passport, National Insurance Number or a form of documentation that provides evidence of benefits collected in the UK. Collecting this simple paperwork will allow both Landlord and tenant to avoid costly fines, deportation anda lengthy investigation.

Landlords should also be able to accept a Biometric Residence Permit that grants the holder a limited stay in the UK. Individuals staying less than 6 months will not qualify for this permit and current information dictates that to accept such tenants, a valid passport containing a time restricted UK immigration stamp is required.

Recent surveys indicate this change in legislation is causing great discomfort among private landlords, with a huge 43% confessing to be unconfident about making such checks. However this needn’t be a cause for concern, with various advisory services available, the proffered information is to provide this simple additional documentation when referencing a tenant. Current guidelines suggest that if a landlord has sent off the appropriate documentation and they haven’t received a response from the Home Office in 48 hours to the status of the potential tenant, then they are within their legal rights to move ahead and rent out their property. Meaning little time is wasted, and income should not be lost through lengthy paperwork submission and approval.

For Student Landlords, this is something that should have very little effect on their usual practice as UK Universities monitor and check the immigration status of students as standard. Something that will safeguard many in the private rental sector.

If you are concerned about what this means for you, or would like to find out more contact or visit www.gov.uk/government/news/proposals-for-landlord-checks-to-tackle-illegal-migrants-renting.

Monday 27 October 2014

KELHAM HALL DRIVE, WHEATLEY




Afternoon all,

This one looks great.

Internally sound and light and spacious throughout it will need little done before renting it out. It comes with a garage as well which is always great for those items that never quite make it into the house!

3 good sized rooms, family garden, 2 reception rooms including dining room and a utility off the kitchen ensure all of the family requirements are ticked. You may also recall my post in recent weeks regarding the draw of local schools, and Wheatly fits the bill big time!

Currently on with Chancellors for the princely sume of £350,000 you can expect IRO £1400 per calendar month for this, giving you a 4.8% yield but check out the appreciation. In Q1 of 2014 this house sits at £350k. At the turn of the millennium it would have fetched £172, 975. A 50.6% appreciation.

Not too shabby considering we have plunged through 2 recessions.

Best regards

Richard

Thursday 23 October 2014

Oxford's weekly Investment update

Sheperds Hill, Greater Leys

Here is a good one folks.

Currently on the market at £240,000 with Chamberlain Evans this one is in need of a few minor adjustments to make it a cracking investment.

The property has good size throughout and 2 double bedrooms which opens the rental market up to sharers, couples or single professionals which is a huge market. It also has the added bonus of a garage which is great for tenant storage. The parking is unrestricted in this area as well so in addition to the driveway there is always room for visitors.

The bathroom could do with a lick of paint and perhaps some re-tiling but aside from this it is pretty solid throughout.

You can expect a rent of £975 for this one or maybe slightly more which will see you return 4.7% yield if you purchase at asking price. If you strike a deal on it, then all the better.

Some of you might look at the location and consider other possibilities but let me tell you, Greater Leys is very popular amongst tenants. I have let 6 properties in this location consistently from 2008 and not one of them has suffered a void with the rents continually appreciating year on year, along with the property prices. Finally!

Call me.