A solid one investment in Headington, Oxford

The Beeches, Headington

Afternoon folks,

So I am at it again with my weekly round up of 'it's staring you in the face' bargains and I stumble across this one in The Beeches, Headington.

You can find this one on with Breckon and Breckon for £265,000. The condition is good and it has two double rooms which will widen your audience and you can expect a rent of approx £1100 per calendar month.

A yield of 4.9% (you will make an offer of course and that'll bump it up to 5%). These units apprecite very well too.

It's only just gone live peeps so move quickly on this one. I dont imagine it hanging around for long.

I should really be charging for this sort of thing but hey, I am just a helpful old sole!

Best regards

Richard

Monopoly In Oxford.....How Would You Play??

A couple of local landlords and I had a discussion about the property market in Oxford, when the subject of risk against returns arose.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the areas of Oxford which are perceived as being more desirable, such as Banbury Road, Summertown and Woodstock Road, where you may be able to achieve an annual yield of around 4-6%. Following my article a few weeks ago, if you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-7%. This level of risk can be typically taken with Victorian terraced houses or 3 storey houses around Oxford and in particular, Cowley. If you are after annual yields of 8% (it can be done!) and over, you could take more of a risk with houses of multiple occupancy or properties in the lower demand areas of town which may attract tenants of a lower quality. I have landlords that would happily share the pro's and cons on all these fronts.

If you would like any advice on choosing properties, come and see me at our office on Woodin's Way, Paradise Street or email me at richard.goodwin@martinco.com.

Best regards
Richard

Worth a second look in Greater Leys, Oxford

Columbine Gardens, Greater Leys, Oxford

Afternoon all,

 Eyes down for this week's investment hot property.

I found this one floating on Zoopla, listed today with Allen and Harris Estate Agents. Just gone on at £240,000 and would command a rent of £925-£950 easily. This would give you a yield of approx 4.8% which is solid. Not 5% I hear you say. Ok, so consider this......

Firstly it is a house, so no management fees. Secondly it is a house so noone above or below you as neighbours and thirdly, yes, you guessed it, it is a house which means your own garden! Joking aside these are big consideration for prospective tenants and it reduces costs for you landlords out there.

Still sat on that fence??? In August 2013 a two bedroom semi detached property sold for £198,000. A year later they are offered at £240,000. That is serious capital appreciation folks. Due to the shortage of housing stock I believe it WILL acheive its price.

Condition looks good both internally and externally.

I see no down side with this property.

Should You Be Buying In Southfield Park, Oxford??

A few weeks ago, I discussed the differences in the rent that could be achieved from properties in the villages around Oxford, however I now turn my attention to the city and in particular Southfield Park, Cowley. It caught my attention.

Typically a 1 bed apartment in this development will sell for £160,000 depending on condition and position. You can expect a rent of approx £795 per calendar month which would see you acheive a rental yield in excess of 5.5%. A fantastic return from your investment. Interestingly they do go even cheaper than this with one selling recently for £150,000. Even with consideration to its locality (ground floor) it was nicely presented and would still command a rent of £750 which would give you an even better yield at 6%.
                       
The good news doesn't stop there folks. The average price for a flat in this development is £178,000. This has achieved an increase in value of 6.9% from 2013, 8.65% from 2012, 14.5% from 2011 and 23% from 5 years ago. When you consider the economic climate in recent years these are impressive appreciations.
                       
If you are a landlord who is looking to buy property to let, you should of course consider both capital appreciation as well as yield. If you can achieve the right figures on both then all the better but it is not essential. Sometimes a good yield won't appreciate quickly in capital value and vice versa but so long as you have one of the two you are on the right track.

If you would like any advice when choosing properties, you may come and see me at our office on Woodin's Way, Paradise Street or email me at richard.goodwin@martinco.com


Best regards

Richard

RELIANCE WAY, COWLEY

A little investigative work needed on this first but assuming it ticks the boxes this one makes for a super little investment.

Currently on the market with Penny and Sinclair for £445,000 this could be a real winner if the conditions allow it.

It is worth noting that I come at this purely from and HMO angle folks (House in Multiple Occupancy) and for investment it only makes sense to buy it under this premise.

Get onto PS and ask if this already has an HMO licence or has ever had a licence. If the answer is yes, then buy it! If not then call me and I will talk you through how to obtain one (nice and easy, honest!)

Offering 4 double bedrooms and a single bedroom this property would command a rent of £2200+ per calendar month which will give you a 6% yield for your invesment. The property is in good order throughout which will keep your inital outlay nice and low. Wood flooring throughout the property ensures it is relatively low maintenance between tenancies as well.

Right, back to my world domination programme!

A Steal in Cowley!

Lizman Court, Silkdale Close, Oxford

Hello campers!

For all you aspiring landlords out there (and those of you who already are of course!) check this one out.

Currently on the market with Chancellors, Cowley this ticks most of the financial boxes and makes for a sound investment.

You can expect a rental income of £875 per calendar month on this one (or more if you let me let it). Set against the asking price this will give you a gross yield of over 5%. It requires little or no work inside which will cut down on potentially lost revenue while works are completed.

All this coupled with minimal voids (if you or your agent are good, there should be no void!) low ground rent charges and what I would regard as a double 2nd bedroom this is a win, win but move quickly. If I am right this wont hang about.

Best regards

Richard

Lime Walk or New High Street. Which Is Best?

Headington, Oxford is a very vibrant, popular town and invites its fair share of privately rented tenants. It was my interest in this location that urged me to carry out a bit of research and I was pleasantly surprised by my findings.

In the area, there are two particularly popular roads, Lime Walk and New High Street. On Lime Walk, 90% of the 149 households have moved since 1995. There is very little difference in New High Street. Of the 154 houses in this area there have been a total of 175 transactions in the same period. The average value of a property in Lime walk is £378,000, compared with New High Street at £318,000. Compare the two on growth from the turn of the millennium and both show an identical increase to 51% from 2000.
Similar so far then! Finally I looked at average rent from 2005. As follows:

Average rents

• 2005 - Lime Walk - £893pcm / New High Street - £896pcm
• 2007 - Lime Walk - £997pcm / New High Street - £994pcm
• 2009 - Lime Walk - £1099pcm / New High Street - £1051pcm
• 2011 - Lime Walk - £1297pcm / New High Street - £1152pcm
• 2013 - Lime Walk - £1348pcm / New High Street - £1398pcm

So I am calling this one a tie! There is a positive increase in market and rental value for both streets and both offer landlords a unique opportunity to invest. Currently there are 4 properties available in these streets for sale (and I can tell you all about one of them!) so now could be the time to make your move.

If you would like our advice when choosing a buy to let investment, please get in touch.


Best regards 
 
Richard