Empress Court Vs Reliance Way - Which is best??

Let me share with you a rather odd story regarding two of my landlords who I have been speaking to this week. One has a 1 bedroom apartment in Empress Court and called me to discuss his next investment. He pointed to the Reliance Way devleopment in Cowley as a possible location for investment. Later that week another of my clients who owns a property in Reliance Way expressed and interest in securing a property in Empress Court. 'What are the chances?!' I muttered to myself, but it did get me thinking about these two giants of the lettings world and how they compare. My findings were interesting.

My client paid £236,000 in 2011 for his 1 bed on Empress Court, in Oxford city centre. At the time the rent was £1125 per calander month which gave him a yield of 5.7%. Fast forward to present day and the apartments are now going at £300,000 or more with the typical rent now at £1250 per calendar month. His yield now sits at 5% and the property has appreciated by 21.34%.

My landlord who owns a 2 bedroom apartment on Reliance Way, Cowley purchased in 2011 for £249,950 commanding a rent of £1050 per calendar month giving him a yield of 5%. Moving on to present day his apartment would now fetch approximately £280,000 at a rent of £1200 per calendar month with an annual yield at 5.1%. It's capital growth during this time is 10.74%.

An argument could be made for both. They both command strong yields and both show good sustainability but in this head to head, the city centre prevails (just)!

If you would like any more information about these developments or investment advice in general then please feel free to visit me in our office at 31 Woodin's Way, Paradise Street, Oxford, OX1 1HD or please give me a call.

Best regards

Richard

Hi di Hi!

Get a load of this one folks. On at £240,000 and will command a rent of £995 giving you that all important 5% yield.

Nice decor inside and with the bonus of garage for storage along with a nice conservatory. The garden needs a bit of TLC but thats a minor for me.

This ticks the boxes for all you investors out there and its capital appreciation ratio from 5 years ago is not bad either. a whopping 21%.

Good yield, room for appreciation in a buzzing Oxford market place. what more do you want?!!

This wont hang around long folks so get dialling.

Best regards

Richard

Gidley way, Horspath

There is alot to be said about purchasing a property in village location around Oxford and thankfully folks, its all good things!

I found this one, currently on with Chancellors and it is certainly worth a look. Maybe ever so slightly higher than I would pay at £285,000 but hey, thats what offers are for right?!

Beautifully appointed with no work needed, a good location and the all important 2 double bedrooms makes this a tenants dream. It should achieve a rent of £995 per calendar month giving a yield of just over 4% but with serious captial appreciation potential on the location alone. This is what will have people fighting over it. It is close to the school that parents scramble to get their kids into. So much so that this year we have shifted 2 in this location within a day of them coming on OVER the asking price.

Need I say more???

Best regards

Richard

Buy To Let lending to become regulated under new EU rules

In a shock announcement from the Treasury, parts of the buy-to-let mortgage market will be regulated to meet EU rules.

The new rules, which are set out in the EU Mortgage Credit Directive, set common standards that EU members need to meet in order to protect consumers taking out loans to buy a residential property.
The Government says the legislation includes “introducing a new set of regulations for buy-to-let lending, where the lending is to consumers rather than for business purposes.”
The Council of Mortgage Lenders says the rule change will have an “unintended impact” on buy-to-let lending and says it’s disappointed that the Treasury has found it necessary to make a “U-turn” on buy-to-let.

The CML offered the following explanation about which buy-to-let loans will be regulated:
“The Treasury considers that, to meet the requirements of the Directive, it is necessary to put a regulatory framework in place for those cases where borrowers are not making an active decision to acquire a property to become a landlord, and where they do not seem to be acting in a business capacity ("consumer" buy-to-let). Examples might include cases where the property has been inherited, or previously lived in by the borrower, but the borrower is unable to sell it and so lets it instead. The proposed new regulation will only apply to relevant new loans (not existing loans), and not until March 2016.”

The changes will not come into effect until March 2016, but the Government is consulting now in order to give mortgage firms and customers as long as possible to prepare for them. The consultation will run for eight weeks.

The advice from your property wizard is buy before this date!

Pound Close, Headington

Morning all,

I noticed this one on my daily round of 'spot a bargain' through Oliver James and thought I'd share before its too late! Cutting to the vital statistics this one would rent at around the £925 per calendar month mark. Stacked against the yield this gives you 4.5% which sits slightly lower than then norm but looking at its capital value and recent movement, properties similar and in this street have appreciated by 19.4% in the last 5 years and only within the last year it has seen a 7% increase all of which has been acheived in financially difficult times. Imagine how it will look in our newly flourishing market and especially with a lack of decent stock.

Property refurb would include new carpeting and a fixed electrical shower unit with tiling. Other than that it is good to go.

On the end of the phone if you need me folks!

Best regards

Richard