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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 cafĂ© 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?!