The price is nearly right!

BUSHY CLOSE, BOTLEY

Afternoon people,

So this one started life at £279,950, was reduced to £275,000 and then reduced again to £270,000 and apparently it is offers in excess of?! No, no, no. One more reduction or a reasonable offer and this one is definitely a winner.

This is a mid-terrace property. Nothing wrong with that but the last mid terrace property sold on this street was 22nd April 2013 at £215,000! Now we have moved on from this point and I appreciate I am calling on the annual Oxford averages here but with an 11% annual growth in this period my maths do not take me to £270,000.

That said it is a cracker at the right price. It will achieve £1050 (maybe more) on the rent with a yield of  4.8% based on £260,000. The current owner paid £177,000 for it in 2004, so I would be hopeful that an offer would be welcomed considering it has been on since the 1st August 2014.

A perfect couples home with the added bonus of a conservatory as well. It occupies a quiet residential location as well, so this could be the ticket folks.

Call me if I can help. I am off to continue my quest for world domination #Lettings!

A cracker in central Kidlington

HAMPDEN BUILDINGS, KIDLINGTON

Evening folks!

Before you all settle down for the 'who killed Lucy Beale' finale, I thought I send you this little beauty in Kidlington.

Currently on the market with Thomas Merrifield for £259,995 you can expect a rent of £995 per calendar month with no trouble at all.

It is internally sound and furnished nicely so there is little to consider regarding works. The double bedrooms are good doubles as well which will open your investment up to professional sharers which in turn opens up the chances of bigger rents.

Its location is perfect for those who want close to everything as well. Your nearest convenience is quite literally 10 seconds away and this will be a big draw for potential tenants.

Kidlington has always been a cracking place to buy for investment but not only does it offer you the chance to invest in this progressive area (new train line folks) but its also very cost effective when compared with some of the more expensive locations in our good town.

The only other advice I could give is to OFFER! but then I suppose thats a daft thing to say considering my audience. The last sale in this location was the 17th Sept 2014 for £239,950. This one is nice and maybe a little bigger than others but I am not too sure about another £20K?!!

Definitely worth chasing up though.

Best regards

SALES, SALES, SALES!!

RELIANCE WAY, COWLEY

So folks, not long after announcing Martin and Co's foray into the world of the Oxford sales market, I am pleased to announce this little beauty that our sales team have just taken on.

On for £317,500 this will fetch a rent of £1175 per calendar month which commands just under a 5% yield which is still very, very good considering Oxford property prices. Its not got a bad appreciation history either. Purchased in peak market at 250,000 it has commanded just short of a £10k per annum increase to present date.

This property is internally sound but a minor refurb would be a good idea to ensure you command the top rent.

We have been renting this property since its purchase and not once has it suffered a void. Nor should it. It sits right in the heart of things and is but a stone throw from Cowley's vibrant town centre.

Call our sales manager Paul Jarvis for more details.

Best regards

A bargain in Nursery Close, Botley

NURSERY CLOSE, BOTLEY

Hello all on this fine Friday. For my weekly round up of bargains I found this little cracker for you to look into.

2 bed, 2 bath ground floor apartment, still classing as new build having been built in 2009. Currently on the market for £275,000 this would fetch a rent of £1150 per calendar month and that puts you bang on for a 5% yield.

We let and manage 10 of these units and they are crackers. They appeal to sharers, couples or single professionals and never have I seen a void period for one of them.

In my humble opinion these sit in my top 5 locations for property investment in Oxford. They are that good folks.

Happy hunting or call me for more info.

Enjoy your weekend.

Best regards

Richard

Average rents in South East up 4.2% on a year ago

The autumn slowdown has not hit the rentals market - and doesn't look likely to.

HomeLet data shows that on average, rental prices are 4.2 per cent higher in the South East (that's us folks!)

Nine out of 12 UK regions have recorded higher rental prices in November 2014 compared to the same month last year, even accounting for a 0.6 per cent decrease in UK average rental prices since October this year. 

Regions that have experienced the highest growth compared to this time last year include Scotland, Greater London, and the West Midlands, with rental prices 11.7 per cent, 11 per cent and 8.7 per cent higher than this time last year, respectively.

Despite the strong annual comparison figures, the HomeLet Rental Index has recorded an ‘autumn dip’ in rental prices, with rents agreed on new tenancies falling in the majority of UK regions in September and October this year. This does not include Oxford however.

This month, that trend continues with all regions of the UK with the exception of Scotland, the East Midlands and the South West recording lower prices in November than in October 2014. Scotland recorded a monthly increase in rental prices of 8.7 per cent, with the East Midlands and the South West recording monthly increases of 1.5 per cent and 1.4 per cent respectively. 

The recent dip in prices reflects typical seasonal movement in the rental market and sits within the context of a market that remains strong. Annually, only three regions of the UK recorded lower rental prices in November 2014 compared to the same month last year: the North West dropped -3.6 per cent; the North East -2.5 per cent and Wales -2 per cent.

Best regards

Richard

Deal of the week folks!!

BROME PLACE, HEADINGTON

A man of many words on a Monday I am.............

£172,500 at a rent of £795 per calendar month, bringing home a yield of 5.5%. Nice inside as well.Pics included for you.

Tis rare to spot a bargain that needs little updating, but hey, thats what you have me for folks.

Best regards

Headington outperforms Abingdon on Buy to Let

A landlord with a small property portfolio came into our office on Woodins Way last week. He lives between Headington and Abingdon, and has properties in both towns. He wanted to ask our opinion on where he should his next Buy to Let property.

Looking at Headington, the average property price can be an impressive £379,068 and the average rent is equally high at £1295 per month. In Headington , an average property is £341,687 however the average rent is only £925 per month. The annual yield in Abingdon could be only 3.3% per year, compared to Headington where he could achieve an annual yield of nearer 4.2%.

It made me consider two other towns close by, Witney and Didcot. In Witney, it was no surprise to find property values are much lower than in Headington, with an average property price of £292,400. Interestingly thought they have an average rent of £1000 per month, which could achieve a yield of 4.1% which is very similar to Headington. The average price of a property in Didcot is £297,408, with rents of around £875 per month. This could achieve a yield of 3.5% per year.

It goes to show that Headington (representing Oxford ladies and gents) can be a good area for an investment property, but it is a decision that shouldn't be taken lightly. I stress these are only averages, so the yields for some small to medium sized properties in popular areas of Oxford can achieve yields of 5.5% to 7.5% per year. If you want to know our thoughts on property in Oxford , come into our office on Woodins Way or give me a call.

Best regards

A great opportunity in Reliance Way, Cowley

RELIANCE WAY, OXFORD

Evening all.

Well this one works!

£310,00 and fetching a rent of £1250 per calendar month I really cannot pick many holes in this one and the development in massively sought after for 2 beds.

Internally sound throughout (ok, so I am going by the pictures but still!) and with 2 double bedrooms and 2 bathrooms is ticks all the boxes.

Yield at 4.9% and growth of 8% from 12 months ago this represents a fantastic opportunity.  One thing to note is that there is a tenant in the property until August 2015 at £1200 per calendar month but hey, this is no bad thing especially if they are good tenants. A rent increase may be in order at some point though!

Call me for more.

Have a good evening.

Oxford property values have increased by £1019.22 per week

Last week, a landlord dropped in
to discuss the rising property values in Oxford. He owns a varied portfolio of rental properties, primarily in our good town, so it is interesting to compare the increase in property values around the area.

Over the last 12 months the average property value in Oxford has risen by nearly £53,000, from £379,795 to £431,861. This is a very reasonable 13.71% increase. This is a considerable average increase of £1019.22 per week.

When I looked at some of the surrounding towns, Abingdon has a lower average increase in property value, at around £562.48 per week, whilst Witney has an even more modest average increase of around £489.63 per week. It is, nonetheless, a rise in average property values to suggest the market continues to recover nicely in our area.

When considering this landlord’s buy to let portfolio, the rental values have remained fairly stable during the 12 months. They continue to rise steadily, therefore it could be a good time to invest in the property market in Oxford. If you would like some advice about buying to let, please come and see us at our office on Woodins Way.

Happy Tuesday all.

Property in Kidlington with great returns!!!

THE PHELPS, KIDLINGTON

Well I might as well just stick right here in Kidlington people, because at the moment they have some beauties on offer!

On with Chancellors for £265,000 this one will fetch £995 on the rental, fetching a 4.5% yield with little danger of a void period.

It ticks all the right boxes on decor. The only thing that would need looking at is the shower situation. This is vital to letting so if there isn't one then it will need one.

This sold on the 21st June 2011 for £190,000. The last property sold in this location was 28th November 2014 at £250,000 so I am sure you will agree they are heading in the right direction on the CA front!

Great location as well. Always hugely popular with tenants. I look after a few down this area of Kidlington and they have been ticking over nicely for years.

Have a good weekend all.

Best regards

Property in Kidlington with a great return!

WILSDON WAY, KIDLINGTON

Up and coming area is Kidlington! Or an established area for those who know and becoming ever the more popular with the new train line to going in shortly. In addition to this it is becoming increasingly more attractive to investors looking to make a steal on the yield return. Prices in this location are commanding but yet more affordable Vs rental income than places such as central Oxford.

On for £259, 950 at will attract a rent of £995 - £1025 which will bag you 4.7% yield which is a healthy return for your investment. It was purchased in December 1998 (UK number 1 was Believe by Cher for all you music lovers) for £72,500. 17 years on and it is now over 3 times the original value. Ok, ok we dont have nor we will have a 2007 property boom to look forward to but barring a few occasions property prices have continued to move in the right direction and certainly more recently. If I look at one more recently a terrace house in this same location went for £210,000 on the 21st March 2014. Now that is progress in short order.

Call and pick my brains at will people but I doubt this will stay on long.

Happy weekend.

Cambridge has itchy feet as 7% more people move than in Oxford

A brilliant indicator, which is commonly overlooked, of an area’s property market is the amount of times properties change hands.

Since the 2011 census there are 55,375 properties in Oxford and only 1296 have changed hands in the last 7 years. Our neighbours in Cambridge may only have 46,714 properties, but of these 4308 households moved during the last 7 years. This works out as 9.22% of the town’s property market changing hands, which is a significant difference to our 2.34%

When we looked at our other neighbouring towns, Abingdon has seen 4054 of 49,047 households change hands. This is 5.88% difference than Oxford movers.

This shows you must cover every detail from the property to the area’s market before making a decision to buy, be it for yourself or as a buy to let investment.

If you would like to talk to us about buy to let, please feel free to visit my office on Woodin's Way, Oxford.

Best Regards

Richard

GORDON WOODWARD WAY, OFF ABINGDON ROAD, OXFORD

So this one hit my radar this morning and with a number of properties in this location I am well on hand to advise you buy it.

On with Oliver James for £285,000 you can expect to let this one out, on a furnished basis, for £1075 per calendar month which will see a return of 4.5%.

Crunching the numbers further reveal 6 monthly management charges at £577 and ground rent at £275 for a nicely kept development. This particular property sold for £229,950 in September 2005 and at its current price it has certainly held its own during financial downturns.

The outlay on works required look minimal with a repaint required in some areas, notably the bedrooms, but other than this it looks good to go and would attract professional sharers or couples, for which there is a huge market at present.

Call me if you would like to find out more.

Best regards

Coming soon in central Oxford..........

Empress Court, Oxford

1 bedroom top floor apartment

Coming soon my sources tell me folks and for those of you who know our great city, you will know that this is an opportunity not to be missed.

By all accounts its a bit of a fixer upper inside but I count this development in my top 3 in Oxford and I would hope my advice may hold some sway considering I actively let and manage over 30 of these units!

Not one of them has experienced a void since 2006. You could buy one in 2011 for 236,000. The going rate now is approx £305 - £315,000 with an achievable rent of £1150 - £1295pcm. Ground rent and maintenance charges scale approx £1200 per annum.

This opportunity is not without some consideration but it is a chance to get your hands on a city centre apartment in one of the most sought after locations in Oxford.

Call me for more.

Happy Thursday

Deal of the week in Cowley, Oxford

WILLIAM MORRIS CLOSE, COWLEY

Afternoon folks,

I hope you are well on this fine, soon to be snowy Tuesday so I hear.

So looking to this weeks investment bargains I present this one currently on with Chancellors with a guide price of £250,000. This development offers a mix on the 2 bed apartments between 1 or 2 bathrooms, with this one having only the one, however the going rate on rent is £1150 which gives a nice little yield of 5.5%.

If you consider the internals there is little to be done as well. Its modern finish is just what the doctor (or tenant) ordered. Other redeeming features are its locality to local kids schools which is a big draw for parents.

This was bought on 26th October 2011 for £215,000 and 3 years on has a swing of £35,000, or more if the guide price is exceeded which is very positive for appreciation.

Definitely worth looking into if your New Years resolution was to invest in bricks and mortar!

Best wisheds for 2015.

Richard

Oxford has some of the most expensive properties in the region Vs salary

A landlord came in to my office earlier this week to discuss the affordability of property in Oxford, with the current national property market being in recovery with increasing house prices. The best advice I can give to those looking to invest in property is my secret trick of the trade.

You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.

When we put this to the test, we found that Oxford currently has an average property value of around £427,000 with the average salary being £27,595. This is a  ratio of 15.49. Meanwhile in Cambridge the ratio of property values to salary is 11.5 , which suggests the property in our town is 14% less affordable than in Cambridge.

We also had a look at Abingdon and found the average salary is £29,097 and the average property value is £312,000. This means that property in Oxford is a rather significant 31% less affordable than Abingdon, with a ratio of 10.7

So what does this all mean for all us Oxford landlords? Put plainly this could mean that now is a brilliant time to invest in Oxford's property market. Despite the trend working against Oxford with it's neibouring towns on affordability it refuses to show any sign of slowing down, with the rental market continuing to flourish year on year. Why? Call me and I will explain!

 If you would like to talk to me about your potential investment, please come into our office on Woodins Way or call me on 01865 812113.

Best

Richard

What will next year's property trends be in Oxford?

I had an interesting chat with a landlord who uses another letting agent in the City after he popped into our office for a coffee whilst his wife was doing some last minute Christmas shopping (Hmmmm, maybe it is time I started buying mine!). We got talking about the Oxford market and thought other landlords might be interested.

You see, property values didn’t stop dropping in Oxford until January 2013, so after a strong run over the last 20 months, the ever upward drive of house price rises has started to turn with increases now at an almost standstill for the first time since the start of 2013.

Now it could be said this easing of the housing market in Oxford can be attributed partly to the time of year (last year property values in Oxford didnt move between November and December), it is obvious that estate agents in Oxford are wary about the direction of the market as a result of the not as strong demand and fewer house sales.

With the uncertainty of a possible interest rate rise, new mortgage rules, a general election on the horizon and recent warnings of a house price bubble. Although the main indicators suggest that buyers will start to gain the upper hand, especially with the new stamp duty rules announced recently by George Osborne. However, there are many homeowners who don’t need to sell and won’t bother unless it’s economically beneficial to do so, but most homeowners are homebuyers, so what they lose with one they gain with another.

This is all good news for landlords looking to buy rental property with the changes in stamp duty and later in 2015, the new rules regarding pensions, where you will be able to take money out of your pension pot to invest in property (see my blog for bargains folks!). However, at the same time, I would say don’t just buy any old property in Oxford. First time landlords need to be cautious. The doubling of house prices every seven to ten years which has taken place since WW2 doesn’t seem to have been seen since the mid 2000’s. Sure, there is evidence that properties continue to appreciate but the likelihood of the property market increasing at the same levels as the past are questionable. That said, the wheels turn slowly at present but they do turn. There are plenty of bargains and very sound investments to be had out there if you know what to look for, other than a pretty looking property.

That is why in the New Year, due to the demand, I will be continuing to offer my advice to new and existing Oxford landlords, irrespective of whether you are a self managing landlord (ie you do it all yourself), landlords with other agents, people who are thinking of becoming a new buy to let landlord in Oxford for the first time in 2015 and finally our landlords that already let us manage their properties.

May I take this opportunity to wish you all a very Merry Christmas and a prosperous 2015.

Still there for the taking in Kidlington

You may recall my recent investment alert about this one on the 24th November -

 http://theoxfordpropertyblog.blogspot.co.uk/2014/11/one-bedroom-house-in-wilsdon-way.html

and it is still available.

My recent note was that it needed work doing to it to bring it to lettable standard. Well here is a snippet of what you could end up with if you do it right:

WILSDON WAY REFURB

WILSDON WAY REFURB

Our client purchased this one in the same dated condition in February 2014 for £162,500. They spent £2000 on refurbishment and ended up with a rent of £775 per calendar month. After total cost they have a 5.4% yield. A year on and this would fetch £825 - £850 which send its yield through the roof. It has a very healthy capital appreciation as well if you consider that this one is correctly priced around the £185,000 mark.

Call me if you would like to know more.

Best regards

Richard

Another cracker in central Oxford

BRIDGE STREET, BOTLEY ROAD, OXFORD

Merry Christmas all!

Recently reduced in price recently, this would make a great investment. Currently on with Oxford Apartments at £395,000 it would command a rent of £1395 per calendar month which brings your gross yield out at 4.2%. My personal thought on this one is that if you can get away with an offer of around £375,000 to £380,000 then you've done really well. I know the seller is very keen to move this forward (insider info available folks!)

As you might be able to tell it needs little doing to it. It has been beautifully finished and this will be a real draw with potential tenants, especially couples I would think.

Built in 1999 and being so well appointed should also keep the maintenance costs down year on year.

Cherry on the cake is always good indication that a property appreciates well. Well this one sold on 6th May 2010 for £315,000. Its present day value demonstrates a 20.25% appreciation which is good going in our economic climate. Not enough Oxford houses = solid house prices!

For more details on this please call me or if you are looking book in to see it. Go on, its Christmas. Its important to treat yourself now and again!

From your friendly neighbourhood property guru.

The Oxford Landlord Test

Do you fit the bill? Follow the link to find out.

https://drive.google.com/file/d/0BxT4ZuA72V-NX0ZrS3hsVUFtUWs/view?usp=sharing

Best regards

Richard

Oxford Investment of the week

Gordon Woodward Way, Oxford

They just keep moving forward on this development!

Internally sound throughout and in neutral effect, it is ready to go for tenants. It has fairly decent square footage for a one bed at 439sq ft and a Living room (open plan) and bedroom size.

It is going for £245,000 with Thomas Merrifield and you can expect a rent of approx £950 per calendar month for this (furnished of course). It has a 6 monthly service charge of £577.80 and an annual ground rent cost of £275. New stamp duty charges apply folks so there is a saving of £50 from the old arrangment (hey it all counts!)

Based on the rent you will see an annual return of £11,400. Your deductions stated above in addition to my estimated 'other' costs are as follows:

• General repair and maintenance (approx) - £500 - £1000
• Void period allowance - Buy to let states a 3 month allowance. Not happening on this sort of property. I wouldnt expect to cater for 3 weeks let alone months!
• Utility charges (out of tenancy) - I have calculated approximately as there is no other way and based on the anticipated time if this scenario were ever likely. 

I approximate that you are looking at an annual return of £9200 and on a final note in November 2009 these 1 bedroomd apartments were going at around £188,000. Not a bad appreciation in 5 years with a double dip behind us eh?

Best regards

Richard

Stamp Duty Land Tax Changes in Oxford - Autumn 2014

Trouble making sense of it all? A nice and easy breakdown for you:

https://www.dropbox.com/s/23ss5agbezkk2bi/SDLT%20Autumn%202014.jpg?dl=0


Best regards

Richard

Oxford Property Newsletter November/December 2014

Morning folks,

I hope you are all getting into the festive spirit When I see the truck I know its the time to get in the mood!

Please click the link to view my wonderful gift to you all.

https://www.dropbox.com/s/pofn1v9ky6fu4hw/Nov-Dec%202014.pdf?dl=0

Merry Christmas.

Richard

The Rise of the ‘Part-Time’ Landlord

Britain is seeing a boom in ‘part-time’ landlords where people are letting properties on the side to boost their main income, recent surveys has suggested.

It found that more than one in twenty (7%) British adults rents out a property to supplement their income and receives an average monthly rent of £678, equating to nearly £28 billion a year across the country.

Landlords in London and the South East (that's us folks!) collect the highest rents at £1,079 and £816 respectively, followed by the West Midlands (£678) and East Anglia (£676). Approximately 60% of this is spent on borrowing costs, management fees and maintenance costs, leaving landlords a healthy pre-tax profit of 40% on average.

The trend is mainly being driven by people moving to a new home and then renting out their old one. In fact, over half (55%) of these landlords are renting out properties that they never intended to, often because they wanted a bigger property(15%), they had to move for work (10%) or they wanted a garden (8%). One in twenty (6%) landlords say they ended up renting out a property because they moved in with a partner and did not want to sell or couldn’t sell their own.

Renting out a property can be a great way to cover your costs if you are unable to sell or want to hold on to a home and make some extra money from it, but it is not without risk. Landlords not only need cover for any damage to their property but they also need to think about their tenants and how they will house them if the property becomes uninhabitable, as well as the lost rental income.

If you are thinking of renting out a property you should check the current regulations for letting properties in your area and make sure you have the right cover in place. Assuming you carry out all of the necessary checks then renting becomes a very viable option.

Regards

Richard

A little gem in Cowley

Lizman Court, Silkdale Close, Cowley

So here is a good un ladies and gents.

On with Chancellors for a 'fixed price' of £169,000 you can expect to get £750 in rent. It is a small flat but has been very well appointed with good use of the furnishings and is kitted out neutral meaning there is not alot you would need to do with it on completion.

A yield of 5.2% is on offer and in July 2014 a one bed flat, very similar to this sold for £150,000. A jump of £19,000 in a few months is not too shabby on the appreciation me thinks!

Happy hunting folks.