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!

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.

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

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.

HMO your way to financial glory

It is Monday morning (pre coffee and breakfast I might add) and at approximately 9:15am I have a call from a gentleman who has recently purchased a 3 bedroom property in Cowley, Oxford.

'What will it rent for Richard?' he asks. My suspicions are immediately aroused by this question as I would have hoped my new investor friend might have had an idea on that front which presumably is part of the reason they decided to buy it!

'Well that depends on how you wish to rent it sir' I replied. 'In what respect'? he asked me, clearly puzzled by the question.

'Well will you be looking for it to be a family home or will you go for sharers and an HMO licence'?

Now at this stage it is still quite common to hear replies such as 'Whichever is easier' or 'How do you get and HMO licence?' or my personal favourite, and still being asked by some people 'What is an HMO'??

In brief an HMO is a 'House in multiple occupation'. It is a mandatory requirement for properties with 3 or more people who are not members of the same family. Most significantly for all you Oxford folks it does apply to all property under this criteria sitting within Oxford District Council.

Everything in this world has its pro's and con's and HMO (houses in multiple occupation) Licensing is no different, but recent demand for professional sharers in Oxford makes the opportunity of obtaining and HMO licence way too hard for landlords to ignore.

In recent times such has been the mad clamber for a decently appointed houses offering to 3 or more sharers that in some instances properties are letting way in excess of their asking price and within hours of coming to market. Examples include:

1. Bullingdon Road, Cowley - Rent £1300. Achieved - £1650
2. Dene Road, Headington - Rent £1650. Achieved - £1800

So today folks my advice comes from three fold:

• For those unfamiliar with HMO licensing and what it entails - seek me out and I will enlighten you.

• For the investment buyer, buying a property - consider HMO licensing. Find out more about it. Ask me. Does the property you are buying have sharers in the property already or is it a family? Does it already have a licence? What is the current rent? What could it be?
• For those landlords with a property not let to sharers - bottom line is that if your property heavily lends itself to families and you are acheiving optimum rent there is little sense in changing. But if you would like to know more of what is involved then call me and I will bring you up to speed.

 The point of this post is to highlight the benefits of obtaining an HMO licence or at the very least asking enough questions to make an informed decision on which way to offer your property. It is not the hassle and unnecessary inconvenience that people would have you believe. Infact obtaining a licence has never been easier. There are hoops to jump through if you go down this route but my, oh my, the long term financial rewards are there for the taking if it is given proper consideration rather than dismissing it out of hand.

'An HMO licence can be the difference between £1300 and £1600 Mr landlord' I said.

Oxford City Council now awaits its latest application.

Investment property of the week

Lizman Court, Silkdale Close

Hello all,

Just doing my rounds for all you property kings and I happended across this one, on with Penny Sinclair for £205,000 (guide price). My guide is thus: One sold on this development in 11th April for £195,000 and another in 29th May for £208,000 so if the guide price is to move in an upwardly manner I would not advise it should go too far.

It looks internally sound and would suit a professional individual or a couple. Sharers may show interest as well but the 2nd bedroom could be a squeeze as it is long but narrow.

You can expect a rent of £850pcm on this which will give you that all important 5%.

Need comparables? I have many. We have let so many times on this development and its always a winner.

Call me to find out more.

Richard

Are school's Oxford's best kept secret?

A factor that is not always considered when purchasing an investment property is its locality to a top state school. However as recent research suggests, it could be a key factor in boosting your properties worth, as premiums for proximity to certain schools are reaching as high as 282%!
A recent survey of over 400 schools, indicated that families are putting education, in particular state school education, as a priority when buying a home. With many moving just a few miles away to enter the catchment area for their desired school. Studies show that an estimated 60% of families move to secure a quality education for their young. Proof in the pudding folks as we watched a 3 bedroom detached property in Wheatly let within hours and it let over the asking price. Yes, you guessed it, the family wanted the primary school!

The top 30 schools effect local house prices by an average of 10% of the properties worth. The results of the aforementioned survey, can only really examine the inflation in price in suburban areas, as the cost of city homes are subject to so many variables, it becomes hard to attribute changes to one factor.
In turn the lowest performing 25% of schools are seeing a 19% drop in house prices, perhaps only further proof that well placed property is a ‘recession proof’ investment.

So as in investor in UK property, how can you make this news work for you? Although it could be argued that the data suggests only sale prices for homes are being effected, a rental opportunity can be an ideal alternative and an ideal investment. The thing to remember when viewing properties, is the proximity to the best schools in the county. If a property is within reasonable walking distance ofa state school that has been rated ‘good’ or ‘outstanding’ by Ofsted, then the value of the house should maintain. By offering a cheaper rental alternative, then you are catering for a proportion of parents that cannot afford to buy a house closer to the catchment area, but make the education of their young a priority.

It has been proven that parents are willing to pay three times the amount it would cost to send their child to private education, to move closer to a good state school. A staggering nine times the income of a British household. Which means that buyers are adding almost a third onto the average house price, if it is close to a good state school.

If you are investing in property close to a good school, then it is worth remembering that the flip side of your investment being valued against a neighbouring educational institute, is that development or change to this school could also cause your investment to change in value. Choose areas where there is a small possibility that large and unwanted low market developments will be built, altering the market and the school intake demand. It should be fairly easy to judge as large development is always less likely to occur in the more upmarket areas. Oxford's biggest benefit is that it is relatively ring fenced by way of new developments.

The added bonus of this kind of property investment is that, if you no longer require lettings income and wish to make a cash return, demand for this kind of property means it never sits on the market for extended periods of time. With a little TLC, it’s wholly possible that a healthy return can be made quickly from this kind of ‘win-win’ investment.

If you would like to find out more please call me or visit me at my office at 31 Woodins Way, Paradise Street, Oxford or give me a call on 01865 812113.

Best regards

Property of the week

NURSERY CLOSE, BOTLEY

Afternoon all,

It is usual for you all to expect to see the latest hot properties fresh off the press from yours truly and for all you budding investors out there I have served you up a real treat with this one!

Nursery Close, Botley, currently on with Chancellors is a beauty. Well built and in a super location these apartment fly out.

You can expect a rent of £1175 for this and if we are to run with the price it will actually sell for, rather than the suggested guide price of £250,000 I would imagine you are looking at approx £265-£270,000. If I am right then your yield is a healthy 5.2%. If I am wrong and it does sell for £250,000 then you will hit 5.6%

Still to be convinced? I lookf after 11 on this development, all of which are let since 2009 with no voids for my clients thus far.

What more do you need I ask you?!!

Happy hunting folks.

Buying a rental Goldmine in Oxford

They say you make your profit when you buy a property, rather than when you sell it, as you are a little more in control of what you pay rather than what you are forced to sell for. With this in mind, why pay the high end retail price for a property just because it looks sweet and idyllic, when what you need is a property that meets all the financial and practical requirements of a landlord first & foremost? 

 

It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win. The most important message to convey in all of this is that all of us Oxford investors must buy well in the first place, because if you start the investment process in the wrong place, the rest of the mathematics that need to be in place to validate this transaction just will not stack up. If a property price is too high, and you just cannot get anywhere negotiating some money off the price, then there is one thing to do and that is walk away, there will always be another opportunity along soon. 

 

The new investor often thinks that by paying more for a property they will get best financial results, but this is rarely the case. As stated in some of my recent blogs, some of the very best investment properties in Oxford are the ones you'd probably not look twice at. Yet if you do your homework right (or call me to do it for you!) you can hit big numbers, with the property giving you minimum fuss. Here are just a few of my top tips:

1. Price - do the homework! There are dozens of ways to ensure that you are not getting sideswiped by a inaccurate asking price. If the price doesn't add up, walk away, even if you have fallen in love with it. Remember that you wont be living there. Aesthetically pleasing is all well and good but keep your eye on the prize, that being the numbers!
   
2. Yield - ideally you want 5% folks, but, but, but dont throw it out if the figure is lower. The are 2 main considerations in any great purchase. Yield is one. Capital appreciation is the other. Again there is plenty of information, showing you how a property or area appreciates over the years.
   
   
3. The Property - Modern kitchen, modern bathroom, modern outlook! Tell me who on earth does not want a modern house and furnishings? Kit the house out well and you are guaranteed optimum rent and to let it quickly.
   
4. Location - This tops the list folks. You can have the most beautiful property in Oxford but if the location isnt right, it wont matter a jot. Seek advice on where best to buy (unless you know Oxford of course)
   
5. Efficiency - Take time to kit the property out with things that will keep it low maintenance. Things such as wood or laminate flooring will save wear and tear on carpets or a new combi boiler that will keep the property energy usage low for the tenant. Further to this is wall and loft insulation is also a good long term protection plan.
   
   

So there you go folks, but before I go, I now have an email subscription service ... at the top right hand corner of my Oxford property blog, above my picture is the option to sunscribe to the blog .. gettting all new blog posts delivered to your Inbox! 
 

http://theoxfordpropertyblog.blogspot.co.uk/
 
Best regards  
 
Richard

How to keep a tenant happy in Oxford

With the prices of houses increasing up and down the country – in Oxford this is 9% on average – it is now more important than ever to give your tenants what they want, because I can promise you if you don’t offer it to them, there’s another landlord out there who will.

I am not talking about giving tenants the silver spoon service or dancing to their every tune, but I am talking about being an interactive landlord. I have included just a few simple, and I would hope in most cases, obvious tips.

Ask yourself and answer this question honestly and you wont go far wrong. If you walked into your house, would you live in it, in its current condition? If the answer is no then there is work to be done. It is really as simple as that. Modern and clean is not a tenant luxury. It is a basic requirement if you are to secure a decent tenant at the right rent.

Once you’ve got your tenants, you should be trying to keep hold of them. There’s a very simple message here and that is that a good landlord is an attentive and responsive landlord. Dont hide from them, ignore them or hope they will go away. Deal with their issue straight away. This simply means that you listen to the needs of your tenants and you act on them. A good place to start with this is that you give your tenants your direct phone number and encourage them to call you if they need anything. If you have a managing agent be sure to engage with your tenant, via your agent in exactly the same way. It might surprise some of you to know that this would already give you a competitive edge of others.

Finally, if you want your tenants to remain happy, give them the appliances and tools that they need to keep the property in good shape. This could mean supplying that vacuum cleaner that you weren’t going to offer originally. However, by offering one, you’re ensuring the continued support of your tenants, but you’re also giving you property the best chance to remain in good condition for as long as possible.

So there you have it: three ways to keep you tenants happy and ensure they keep your property looking happy.

It can really be that simple. It will only be as hard as you make it.