Featured post
www.OxfordPropertyBlog.co.uk is hosting a Landlord seminar
On 2 March 2017, we will host a seminar featuring expert speakers from Martin & Co, Hedges Law, Critchleys Chartered Accountants and...
Friday, 28 April 2017
Oxford rents rise by 22.6% since 2005
Thoughts from a train
Sitting on a train to London provides space for contemplation. April has been an odd month. Demand has been impacted by Easter and bank holiday breaks, at a time when the availability of rental properties in Oxford is high. Why so high? It is the 12 month anniversary of the pre-stamp duty rush to buy last March. Those new buy to let properties have added to the supply in Oxford in a month somewhat decimated by holidays.
What does this mean for landlords? Well property fundamentals are based on location, condition and price (relative to comparable properties). The location of a property is fixed and the exposure of a portfolio geographically can only be changed over the medium to long term. Condition is not fixed. Investing in the decor, general condition and quality of fixtures and fittings makes a difference at a time when tenants have choice. If the condition can't be improved further to enhance the property's attractiveness, then only price remains.
Prospective tenants are savvy, if they have choice they will assess value for money in relation to location and condition. Landlords need to be honest with themselves and be just as savvy in assessing the rent they are seeking vs the competing properties.
Will rents fall in Oxford in 2017, for some properties, yes. Is that a long term trend? I think not. Oxford tracks London but lags in terms of time. London had a tough 2016, Oxford may follow in 2017. I doubt we will see rent deflation across the board, but at the top of the market we may see pressure e.g central Oxford apartments if demand from foreign students is adversely impacted by the political focus on immigration.
So is Oxford losing its shine? No, capital appreciation remains strong. Accepting say 3% lower rent to avoid a void, will ensure an overall annual return of 6% plus when income and capital appreciation are combined. For many without debt, this could rise to 8 % plus.
The thing to avoid is a void!
Thursday, 27 April 2017
Landlord Seminar - Inheritance Tax Planning for Property Investors
1st June 2017 at 6pm to 7.30pm at The Oxford Spires Hotel
Back in Silkdale Close, Cowley for this investment cracker!!
On the market for £220,000 with Chancellors, Cowley you will expect to hit a rent of £975pcm on this which would give you a 5.3% return on your investment, assuming you purchased at asking price. As always is the case with my advice, I wouldn't!
I say this because even at a glance I think the property needs a re-dec and shower unit. Tap operated showers are not really what tenants want or expect for their money so money will need spending here. In addition to this some of the furniture needs an overhaul as well. I approximate spending around £2500 to bring this property to standard but a viewing would be good to further assess the condition. A photo can lie after all!
Other than the above it really doesnt have much of a downside. These are really shrewd investments. Just ask the previous owners of 21 Lizmans Court who purchased the property in July 2012 for £155,000 and then sold it on 10th May 2016 for £210,000 representing a 27% increase.
Good right?
Aside the work these flats are minimum fuss and a real hidden gem in Oxford for those of you looking to add to the current portfolio or purchase for investment for the first time.
Please feel free to call me for more information.
Best regards
Richard
Wednesday, 26 April 2017
The perfect investment in lovely Kennington
Step forward Kennington!
This cute little one bedroom property on The Avenue is currently on the market with Simpsons in Abingdon (??) for £250,000. It is worth a second (and third) look.
Internally it is very hard to fault so no major work necessary here to property itself or the furnishings, assuming they get thrown into the equation!
Its garden is lovely and a real draw for potential tenants as well.
You are looking at £925 and £950pcm which gives you 4.5% yield assuming asking price but an offer is always worth it.
Behind city centre and North Oxford, Kennington tends to be the most sought after location in our area.
Happy to talk about this one and others folks!
Best regards
Richard
Tuesday, 25 April 2017
A little gem in Reliance Way, Cowley!
I hope you are well.
I spotted this one in Cowley. I am sure you locals in Oxford will know Reliance Way quite well and what was true in 2010 is still true now......It makes for a cracking investment!
You can find this one on the market with Chancellors for £350,000. Recent selling history saw one sold on the 1st July 2016 for £340,000 and prior to that number 144 Reliance Way sold for £347,000 on the 26th April 2016. In short the price is thereabouts but that should never deter you from an offer!
The going rental rate for this apartment is £1295 - £1325pcm. At the lower end (always cautious me!) which gives you 4.5% on the yield.
Internally it looks sound but this will need a viewing to inspect closer. If it is as it is presented in the pictures then you will need very little done to it.
With the recent house price index from March to April reporting a slowing down in annual property growth, now could be a very good time to jump in there with an offer on this apartment. It has a rich rental history throughout the block and very rarely do you see voids on these units.
Call me if you would like to know more.
Best
Richard
Monday, 24 April 2017
Legal questions raised about online estate agents
A leading barrister has raised several questions about the duties owed by online estate agents to their customers.
In the Opinion, prepared for the UK PropTech Association (UKPA), Ian Rees Phillips of 6 Pump Court explores how the nature of up-front payment for estate agency services may create a conflict of interest between the online estate agent and property vendors.
The opinion concludes that the online agents owe a fiduciary duty to home seller clients and that there is a “significant danger that breach of fiduciary duty is baked into the online estate agent model.”
Those online agencies who operate with self-employed agents in the field are in even more “danger” of their clients “bringing a claim” against them.
Eddie Holmes, chairman of the UKPA, said: “It is extremely important that founders operating new business models, enabled by technology, bear in mind the legislative environment in which they operate. The world of PropTech is no different to any other in this regard.
“This Opinion by Mr Rees Phillips serves to highlight some fundamental questions about the online agency business model.
“We urge those businesses operating in this space to consider these questions as a matter of priority and communicate what steps they take to protect their customers – something which should, ultimately, help those businesses create competitive advantage for themselves.”
Rental trends reported by RIghtmove
Nationally, it is taking 10% longer on average to secure tenants than during the same period last year.
In the SE of England, compared with Q4 2016, there has been a 1% reduction in average achieved rent, whereas compared to the same period last year rents are up 1.3%.
Oxford typically tracks the London market quite closely, albeit with a lag and with lower valued peak rents. Looking at London, compared with rents in Q4 2016, rents in Q1 2017 are up 1.5%, however, when compared to the same period in 2016 rents are 4.2% down. To date, Oxford rents have held-up well, however, properties are currently taking longer to let than during the same period last year. Following the buy to let buying spree in March last year, those properties are now coming available, increasing the availability of properties and offering tenants more choice.
Will Oxford experience the falls in rent experienced in London? Well, I don't have a crystal ball, but on balance I'd predict a period of low growth in rents and for some properties stagnation. However, I would expect demand to hold-up reflecting the under-supply of homes and the strong fundamentals of the City's economy.
I expect one bedroom properties to hold-up the best with larger properties from 2-bed apartments upwards taking a little longer to let. Landlords should not panic, but should be open to accepting offers from tenants, recognising the benefit of prolonging a void period.
Demand for professional HMO properties is likely to remain strong, with tenants demanding a high quality of fit and finish, and good quality, well-equipped communal areas and en-suite facilities.
Rooms without en-suite facilities, or within homes that are rather tired in terms of interior décor and facilities are most likely to be hit by the reducing demand given the narrowing of the gap between top-priced rooms and one-bedroom and studio apartments. The cost of renting a room in Oxford is very high, and I'd expect to see some.
Thursday, 13 April 2017
The lowest fixed mortgage rate in 5 years!
|
|