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.

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

Maintenance Matters - Don't ever forget its importance

A high level of ongoing maintenance is essential in order to protect a landlord’s investment... and inexpensive minor repairs can often prevent expensive extensive restoration and renovations later.To prevent costly repair bills and deterioration of a rental property, ongoing maintenance is vital.

Spending a penny to save a pound is an old saying that definitely applies in this context. In fact, simple preventative maintenance can prevent greater costs down the line. A well maintained property can also be beneficial for your tenant too...

Ongoing maintenance helps keep the property in a good state of repair. It also creates a good impression of you as a landlord and provides a better environment for your tenant to live in. This, in turn, may well encourage them to stay longer.

Signs and signals
There are many early warning signs that maintenance may be necessary...

Landlords should look out for any water damage, cracked or discoloration of plug sockets, blocked guttering, overgrown gardens, broken fencing and, importantly, signs of damp and mould.

Damp and condensation should be nipped in the bud quickly. A regular review of gutters is a good idea as this can be a main cause of damp if not cleared out, especially if trees are in close proximity.   And, with all the rain we get here in Oxford, this is more important than ever...
                
A good example in this rather wet summer would be to clear out gutters rather than have water pouring down the front of buildings, or even worse, over the back of gutters and down inside the fabric of the property.

When it’s raining it is a good time to look at the outside of your property to spot leaking gutters, joints and down pipes. If you have a floored attic it could be some time before you notice a roof leaking into the living accommodation, so make sure you look in the attic itself. Tide-marks and wet patches appearing on ceilings or around windows are important signs too.

Wooden windows cannot be left for long without needing maintenance and generally a 5-year programme of pre-painting repairs and repainting can expand their life span.

It’s also a good idea to spend a few pounds resealing baths and showers, as well as checking shower screens aren’t leaking and removing bath panels to check underneath. A long-standing leak in an upstairs bathroom could cause major work downstairs if the ceiling was to come down.

Maintenance monitoring
Maintenance awareness is key but some landlords say that they find it difficult to monitor maintenance issues as they are not living on site themselves. The answer lies in a combination of tenant feedback and regular inspections...

Tenants have a duty to inform the landlord or agent of any obvious maintenance issues, but often they might not. Regular inspections on a room-by-room basis should also be conducted.

The best person to ask is the tenant who is living and using the property day to day. However, inspections are the real key as they allow you to look at each room yourself and also allow a little time for the tenant to think about any issues they are aware of while you are inspecting.

I know there to be 2 there are two types of maintenance: planned and responsive. Unfortunately, tenants often aren’t as diligent as you would be in checking the fabric of your property so regular inspections could lead to identifying preventative maintenance rather than waiting for a big problem to arise at a more inconvenient time.

Minimum disruption
But how can you ensure disruption is kept to a minimum for your tenant during maintenance?

I always work around the tenant and ask them when they would rather have the work done and usually, if the problem requires immediate attention most tenants are happy to accommodate this. For some maintenance, however, such as decorating and major refurbishment, I would wait for the property to become empty.

If we lived in a perfect world tenants wouldn’t encounter disruption due to maintenance issues but often speed is of the essence in order to prevent matters getting worse and taking even longer to deal with. If an emergency issue arises good communication with tenants is essential. However, planned or routine maintenance, such as external or internal paintwork, are better left for empty periods.

During your tenants’ annual holiday or during the working day are also good times to carry out maintenance.

Holidays are a great time to do major repairs as long as the tenant has appropriate notice and you have their permission to access the property. Also while the tenant is at work could be a good time if they are happy to let the contractor gain access.

A helping hand
One of the best ways to ensure your maintenance is kept up-to-date is to employ the services of a good property management agent.

Properties are like the Forth Bridge and ideally need tinkering with constantly... but inevitably, with a rental property, maintenance is much more intermittent. A good letting agent, can help by inspecting the property on an agreed frequency, plus instructing and managing repairs with their reliable local contractors.

A good agent will have a good basic knowledge of maintenance issues and can often instruct the tenant on what to do regarding the issue or attend ourselves to solve the problem – although this of course does not relate to more specialist areas, such as gas and electrical works.

As many agents offer an emergency out-of-hours service, having their helps also means that issues will be dealt with swiftly – whenever they may arise...

Most agents will deal with reported problems 24/7 and the landlord can be confident that maintenance will be organised within an acceptable timescale to eliminate unnecessary disruption to the tenant.

Maintenance signs to look out for...
Blocked drains
Leaking or blocked guttering
Leaking windows
Mould
Condensation
Water damage
Broken fencing
Signs of damp
Cracked electrical sockets
Leaking taps
Cracked chimney stacks
Dislodged or broken roof tiles
Erosion of shower and bath seals
Crumbling brick or stonework
Deteriorating pointing
Wood beetle infestations
Peeling paintwork

This all seems obvious right? In my experience, NO! Things going wrong often boil down to one of 2 reasons. One is not really understanding what to do or what to look out for in which case I trust this post does wonders for you! The other reason is that, like them or loathe them, you need a quality, organised letting agent in your life, so you can go about enjoying yours. I can help with this as well.

Best

Richard

Northway, Headington

Hello Oxford!

I hope you are all very well.

I spotted this one on Zoopla recently and thought I'd get it out there ASAP as it will go super quickly.

2 good sized bedrooms and 2 bathrooms and it looks to be in pretty good condition so out lay should hopefully be minimal. If I am being slightly picky the annual maintenance charge is slightly on the high side at £1500 but the general upkeep of this development is good and the cous de gras is that the yield on offer is 5.7% with the rent expected at around £1200 per calendar month.

All things considered its worth every penny. Thus to prove my theory I will have a little sportsman bet that it is sold within 10 days.

Watch this space folks. Or buy it!

Richard

My Oxford Buy To Let Checklist

Popularly hailed as an alternative to badly performing pension funds, buying to let was slowed down by a recession that squeezed mortgage deals and discouraged housing investment. But a reviving market is now generating more attractive mortgages, stimulating property prices and generally raising rent levels again.                         Advice for new Buy-To-Let investors can still be contradictory and confusing. Like most things if you’re Buying-To-Let, you need to do it right and when a considerable amount of your own money is involved it becomes absolutely critical. That’s why I have prepared a definitive checklist for anyone wanting to make a success of an investment in residential rental property. It offers a selection of do’s and don’ts. The checklist is only guidance – I prefer to sit down with a new potential investor in person, and offer more solid professional advice. Everyone’s circumstances and expectations are very different.                         BUY-TO - LET CHECKLIST Research your market – the area, the people you want to rent to, the available property, the benefits and the risks – and keep up with letting industry news (or my blog!) Choose your preferred tenant type. Students? Young professionals? Families? Find the right property that will appeal to them – houses, flats, older properties, newer builds? Students may not need anything particularly stylish but a young professional might. Then pick the right area where they want to live – parents may want to be close to schools and shops; wage earners need to commute to work; students have to be near to their college or university. Look outside your own area if necessary. If local crime statistics are available, take a look and bear them in mind. Study the condition of any property you are interested in – from roof, guttering and windows on the outside to condensation, leaks and electrical wiring on the inside. Be conscious of fire risks. Check whether extensions or conversions have met planning permission or building regulations. Don’t accept the first mortgage offer you get. Shop around. Gather information. Compare. Get the maths right – your investment might give a better return in some other way. How much is the right property going to cost? Is the rent you expect to get enough to cover the mortgage and give a profitable return? Does the potential capital growth add up to a good investment? Talk to an independent lettings agent before you buy. Most mistakes involve either wrong location or wrong price paid for a property. Don't be greedy – Buying-To-Let should be approached as a long-term investment, not a quick fix. Be prepared for costs that can upset your calculations – ongoing maintenance, small and major repairs, advertising, future rate rises, mortgage costs, agents fees, tax, falling house values, periods when you can’t find tenants and the property is empty. Get the right insurance cover – and that can include insuring yourself against tenants who fail to pay rent. If you’re going to manage the let yourself, be prepared to sacrifice your evenings and weekends! If this is likely to be more of a drain than you are prepared for, seek out a professional, fully accredited lettings agent who, for a fee, will look after your property, your interests and your tenants on your behalf. As well as being completely up to date on legal, legislative and property industry issues, a local agent such as Martin and Co, Oxford will have expert knowledge of the best rates from local electricians, plumbers and so on, which in itself, can be worth a weight in gold. I do not make any charge for pre-purchase advice, property visits or rental valuations. Before you do anything, get professional advice is my advice. As the legendary oil well fire-fighter, ‘Red’ Adair, once said: “If you think it’s expensive to hire a professional to do the job, wait till you hire an amateur.”                         Best regards Richard

Where should you be buying in Oxford?

Last week, I spoke with  two of my landlords who asked me if the number of bedrooms in a property had any relationship to the return they could get. I did some research and followed up their query – I was actually quite surprised with the results...
   
Currently in Oxford, the average rent for a one bed property is around £925 per month with an average value of £195,000. This means an approximate return/yield of 5.6% per year. The average rent for a two bed property is £1250 per month with the average value being £279,948, which gives a return/yield of 5.3% per year. When I looked at the three bed properties, the yield/return changed quite drastically. The average rent being asked for is £1447 per month but the average value is £345,000 which would give a potential return/yield of only 4.3% per year. Four bed properties achieve a poor return/yield of only 4.1% per year, as average rents are £1893 per month but the average value is £550,000.

There is merit in both housing types. The averages suggest that 1 and 2 bed investments make the best returns overall and I would go along with this, but there is also alot to be said of larger homes especially family homes, which can offer longer term stability and lower maintenance cost for the property. Two of the many factors to consider before buying for investment.
   

If you would like any advice on choosing properties, come and see me at my office on Woodin's Way, Paradise Street. Alternatively and for the most up to date property and investment advice please visit my property blog at:

http://theoxfordpropertyblog.blogspot.co.uk/



Best regards

Richard

A solid one investment in Headington, Oxford

The Beeches, Headington

Afternoon folks,

So I am at it again with my weekly round up of 'it's staring you in the face' bargains and I stumble across this one in The Beeches, Headington.

You can find this one on with Breckon and Breckon for £265,000. The condition is good and it has two double rooms which will widen your audience and you can expect a rent of approx £1100 per calendar month.

A yield of 4.9% (you will make an offer of course and that'll bump it up to 5%). These units apprecite very well too.

It's only just gone live peeps so move quickly on this one. I dont imagine it hanging around for long.

I should really be charging for this sort of thing but hey, I am just a helpful old sole!

Best regards

Richard

Monopoly In Oxford.....How Would You Play??

A couple of local landlords and I had a discussion about the property market in Oxford, when the subject of risk against returns arose.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the areas of Oxford which are perceived as being more desirable, such as Banbury Road, Summertown and Woodstock Road, where you may be able to achieve an annual yield of around 4-6%. Following my article a few weeks ago, if you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-7%. This level of risk can be typically taken with Victorian terraced houses or 3 storey houses around Oxford and in particular, Cowley. If you are after annual yields of 8% (it can be done!) and over, you could take more of a risk with houses of multiple occupancy or properties in the lower demand areas of town which may attract tenants of a lower quality. I have landlords that would happily share the pro's and cons on all these fronts.

If you would like any advice on choosing properties, come and see me at our office on Woodin's Way, Paradise Street or email me at richard.goodwin@martinco.com.

Best regards
Richard

Worth a second look in Greater Leys, Oxford

Columbine Gardens, Greater Leys, Oxford

Afternoon all,

 Eyes down for this week's investment hot property.

I found this one floating on Zoopla, listed today with Allen and Harris Estate Agents. Just gone on at £240,000 and would command a rent of £925-£950 easily. This would give you a yield of approx 4.8% which is solid. Not 5% I hear you say. Ok, so consider this......

Firstly it is a house, so no management fees. Secondly it is a house so noone above or below you as neighbours and thirdly, yes, you guessed it, it is a house which means your own garden! Joking aside these are big consideration for prospective tenants and it reduces costs for you landlords out there.

Still sat on that fence??? In August 2013 a two bedroom semi detached property sold for £198,000. A year later they are offered at £240,000. That is serious capital appreciation folks. Due to the shortage of housing stock I believe it WILL acheive its price.

Condition looks good both internally and externally.

I see no down side with this property.

Should You Be Buying In Southfield Park, Oxford??

A few weeks ago, I discussed the differences in the rent that could be achieved from properties in the villages around Oxford, however I now turn my attention to the city and in particular Southfield Park, Cowley. It caught my attention.

Typically a 1 bed apartment in this development will sell for £160,000 depending on condition and position. You can expect a rent of approx £795 per calendar month which would see you acheive a rental yield in excess of 5.5%. A fantastic return from your investment. Interestingly they do go even cheaper than this with one selling recently for £150,000. Even with consideration to its locality (ground floor) it was nicely presented and would still command a rent of £750 which would give you an even better yield at 6%.
                       
The good news doesn't stop there folks. The average price for a flat in this development is £178,000. This has achieved an increase in value of 6.9% from 2013, 8.65% from 2012, 14.5% from 2011 and 23% from 5 years ago. When you consider the economic climate in recent years these are impressive appreciations.
                       
If you are a landlord who is looking to buy property to let, you should of course consider both capital appreciation as well as yield. If you can achieve the right figures on both then all the better but it is not essential. Sometimes a good yield won't appreciate quickly in capital value and vice versa but so long as you have one of the two you are on the right track.

If you would like any advice when choosing properties, you may come and see me at our office on Woodin's Way, Paradise Street or email me at richard.goodwin@martinco.com


Best regards

Richard

RELIANCE WAY, COWLEY

A little investigative work needed on this first but assuming it ticks the boxes this one makes for a super little investment.

Currently on the market with Penny and Sinclair for £445,000 this could be a real winner if the conditions allow it.

It is worth noting that I come at this purely from and HMO angle folks (House in Multiple Occupancy) and for investment it only makes sense to buy it under this premise.

Get onto PS and ask if this already has an HMO licence or has ever had a licence. If the answer is yes, then buy it! If not then call me and I will talk you through how to obtain one (nice and easy, honest!)

Offering 4 double bedrooms and a single bedroom this property would command a rent of £2200+ per calendar month which will give you a 6% yield for your invesment. The property is in good order throughout which will keep your inital outlay nice and low. Wood flooring throughout the property ensures it is relatively low maintenance between tenancies as well.

Right, back to my world domination programme!

A Steal in Cowley!

Lizman Court, Silkdale Close, Oxford

Hello campers!

For all you aspiring landlords out there (and those of you who already are of course!) check this one out.

Currently on the market with Chancellors, Cowley this ticks most of the financial boxes and makes for a sound investment.

You can expect a rental income of £875 per calendar month on this one (or more if you let me let it). Set against the asking price this will give you a gross yield of over 5%. It requires little or no work inside which will cut down on potentially lost revenue while works are completed.

All this coupled with minimal voids (if you or your agent are good, there should be no void!) low ground rent charges and what I would regard as a double 2nd bedroom this is a win, win but move quickly. If I am right this wont hang about.

Best regards

Richard