Tuesday 16 December 2014

Why an investment property for your Uni kids might be the way to go!


So, I had a more unusual enquiry last week that I thought could relate to many Teddington residents and therefore worth sharing. A mum who lives in Hampton dropped me an email to ask for my advice on buying an investment property for her daughter who was about to start at Uni. We met for a coffee and discussed the details. Her daughter has just started at Bristol university this September and is currently, as most first year students do, living in Halls. Now, her plan is, instead of paying a landlord an astronomical rent for a tiny 3 bed house, packed with 4 students, where you want to wipe your feet before leaving(!), she wants to become that landlord and provide her daughter and her friends with a decent place to live for her last 2 years of Uni.



So, here’s what we did….we looked at an example property, analysed the figures and how it would work. We found a really nice, large 3 bed terrace a 10 minute walk from the Uni (just about do-able for students apparently)! It has 2 reception rooms which means you can convert one into a bedroom and the other becomes the house lounge with a separate kitchen. It’s on the market for £375k and, with 4 students living there, you would get an average of £400pcm from each, giving you a gross income of £1600pcm. That gives you a gross yield of 5.1%. Now don’t forget, you’re not getting the income from your own child’s rent but effectively you are, in real terms, seeing as you would otherwise be paying that to another landlord anyway.


Let’s look at the pros of you buying a property for your child at Uni…
  • You are investing in property rather than giving dead money to another landlord
  • You know your child is living in a nice, well looked after property complying with current regulations (fire safety etc.)
  • Your property will more than likely increase in value during your child’s time at university
  • You can either sell the property at the end of their Uni course or continue renting to a new set of students.
  • You can pass the property on to your child, potentially saving on tax, to get them started on the property ladder
If this is something you’ve maybe been thinking about for a while and appeals to your circumstances then please do drop me an email or give me a call and we can chat about how it can work for you. As part of my business, I can find you a suitable property in any UK University town, make sure you are compliant with all regulations, provide all relevant tenancy agreements and even fully manage the property for you. Effectively a one-stop shop where you can be involved as little or as much as you like.

Rebecca Smith

Friday 12 December 2014

Buy to let deal of the day - Feltham 5.2% yield AND added value

I know a lot of you only like the TW11 postcode but you should consider TW13 - Feltham. Its so close to Hampton that it could be the next up and coming area and give good capital appreciation next year.

I found this 2 bed house which needs full refurbishment, perfect for immediately adding value should you wish to refinance and get some equity out to buy another property - if that floats your boat!

    
Its on at £275k so, say you get it for £270 and spend £30k on it, your total investment, minus fees, is £300k. You would get £1300pcm rent for this giving you a gross yield of 5.2% on a property now worth in the region of £320k. Pretty decent in my book.


Rebecca Smith


Wednesday 10 December 2014

Where is the Teddington property market going in the next 10 years?


Following my article a couple of months ago on property values up to July, I am pleased to say that Teddington house prices edged up by a further 1.8% in the last 3 months. As a result, the annual pace of house price growth in Teddington is up to 12.7% from 10.9% in July. We need to go back to March 2010 to see such a high growth, as house price growth continues to outpace earnings by a wide margin, with average wage growth running at less than 1% in recent months.

I am not an estate agent, but know most of the estate agents in town pretty well and they say new buyer enquiries have moderated somewhat in recent months. Coupled with the prospect of interest rate increases together with subdued wage growth may temper demand in the year to come. The demand should be there as the brightening economic outlook and consumer sentiment remains buoyant thanks to declining inflation and sustained decreases in unemployment down in Teddington to one of its lowest rates of 1.5%

Nevertheless, Teddington housing affordability does not appear stretched by historic standards, in part, due to the low level of mortgage rates. However, a decent two bed flat can be yours in Teddington for £350,000, meaning if you could save the £52,500 deposit (85% LTV), it would be cheaper to rent than buy. So why are first time buyers buying their first house instead of renting?

It comes down to choice and lifestyle of the tenants. In many cases renting provides the flexibility some people, especially young people, want and need. For others, home ownership is top priority but when there is no social pressure to buy and you can ring the landlord and sort out any issue, why would someone want to buy? Youngsters find it hard to save for the deposit when Apple launch their latest iPhone every six months or the next 50 inch LCD TV needs buying. Renting is a choice and we are developing a more European mind-set it would seem.
  
Therefore, my message to Teddington landlords is renting is here to stay for the medium to long term, whilst the outlook in the short term for the Teddington and Richmond Borough housing market remains uncertain. The number of mortgage approvals fell by almost 20% between January and August, suggesting that activity was cooling. However, there was a modest rebound in September and it is unclear how much of the slowdown was due to the introduction of Mortgage Market Review rather than an underlying loss of momentum.

It’s all about buying a property that will attract the right sort of tenants, a good balance of yield and capital growth and when you do come to sell it in ten or twenty years, it will sell at whatever the market is doing at the time. I can give you my honest opinion on any property. Many landlords send me Rightmove links to property, asking my advice. You can too if you want... It’s no trouble at all, but I will warn you, I will always tell you what you need to hear, not want you want to hear! Email me on rebecca@rebeccasmithpropertyservices.co.uk   


Rebecca Smith

Monday 8 December 2014

Buy to let deal of the day - Twickenham 5.9% yield

Teddington is getting harder and harder to find a good deal. The demand is not even close to waning which is keeping property prices high. Good if you already own a property here but not so good if you're looking to buy an investment property here to supplement your income.

So, until the next bargain pops up we have to look elsewhere - and not too far fortunately! I saw this one online which ticks all the boxes for rentals. Central location - tick. Close to transport links, particularly the fast train into Waterloo - tick. Big with 2 double bedrooms - tick. Looking a bit tired so opportunity to add value - tick! 

    
(Can't believe they didn't even put the toilet seat down to take the marketing pictures - unbelievable)!!

It's on at £285k so, say you shave a bit off and get it for £280k, you should get around £1400pcm for it which would be a gross yield of 5.9%. 

You can always do some work to it at a later date to add the value...

http://www.zoopla.co.uk/for-sale/details/31471011#FcBmV3bz6dHl3rfA.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/


Tuesday 2 December 2014

Strawberry Hill or St Margarets? It's all about the yield.


A landlord dropped me an email, just last week, asking whether he should buy a two bedroomed flat in the Strawberry Hill or St Margarets area. He likes and knows both and so would be comfortable investing in either. I hear this a lot, and whilst it probably won’t produce the greatest return, if you are much happier investing in your own area then do it. Life’s too short to be worrying about a property 100 miles away that, whilst it may get you an extra 2% yield, may also give you 100% more stress!!

We did some research and found that a nice two-bedroomed leasehold flat in a very attractive block called Stangate Mansions off Tower Road in St Margarets, was on the market for £419,950. We worked out the possible rent for this as £1450 per month, which could achieve an annual gross yield of 4.1%. The properties in this area are quite popular with professional couples and tend to have a great demand with investors and tenants alike, making it a relatively good investment.

A similar two bedroomed leasehold flat on Popes Grove, just around the corner from the station in Strawberry Hill, approximately two miles away, has a value of £599,950. The possible rent for this property is slightly higher, at £1800 per month, as it is slightly larger and a higher spec than the one on Tower Road. We found that although the rent can be higher, the annual gross yield was actually less at 3.6%.

This shows that, whilst a property can achieve a higher rent, it does not necessarily mean higher returns!
                      


If you would like any advice when choosing properties, please do get in touch as I’d be happy to help. There’s the right property out there for everyone if you’re ready to invest!

Rebecca Smith

Monday 1 December 2014

Buy to let deal of the day - Teddington conversion?!

Lets be a bit brave today! It's a Monday after all and, as Christmas songs have now been playing on the radio for around 3 weeks, it must be that time of year!

If you follow my blog and newsletter on a regular basis then you'll know Stanley Road; the cheaper (if such a thing exists) end of Teddington where a lot of the houses have been split into flats. So, why not do the splitting yourself and be the one to reap the benefits rather than someone else?!

Here's a 2 bed house that's actually been done to a lovely standard. If you've got the cash you could split it into a 2 bed split-level flat on the top floor going into the loft and keep a 1 bed garden flat on the ground floor. 

  


http://www.rightmove.co.uk/property-for-sale/property-32698191.html

So, very basic estimates are that you could do the work for £100k which, added to the purchase price of £500k, makes a total (not including fees) investment of £600k. Done to a top spec, the 2 bed top floor flat will rent for £1500pcm and the one bed ground floor for £1300pcm. That's an income of £2,800 which is a gross yield of 5.6%. Pretty good for Teddington - IF you have the funds and mindset for the work!

Don't forget you could also flip the flats for a tidy profit should you wish. A 2 bed flat on Stanley road sells for around £400k and a 1 bed garden flat for £300k. That's £100k gross profit. Even if you don't sell it, you've instantly got that added value sat there either for your nest egg or, as equity you can release to re-invest into more property! I know what I'd do with it! :o)

If you're thinking of getting into buy to let but have no idea where to start then I can help you. Just drop me an email or give me a call and I'd love to have a chat. 
rebecca@rebeccasmithpropertyservices.co.uk
020 8398 9333

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Wednesday 26 November 2014

Buy to let deal of the day - Hampton flat

This morning I did a search on the portals for properties in Teddington and the surrounding areas and immediately went to the ones that had been on for a long time (filter your search by 'most recently added' and go to the last page). 

This one caught my eye as I think it is still a good £10k over-priced despite starting on the market at £335k back in early September. Decent size 2 bed flat, yes, its over a grocery store but its only you that would be bothered by that, not most tenants!

    
Say you get it for a nice, round £300k, you don't need to spend anything on it and people would be queuing up to give you £1200 pcm for it. That's a gross yield of 4.8% so pretty decent. 

It has a recently renewed lease so just need to check out the ground rent/maintenance charges.

http://www.rightmove.co.uk/property-for-sale/property-32179143.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Tuesday 25 November 2014

Buy to let deal of the day - easy Teddington investment

This one has just come on to the market and is a nice easy one to start yourself off in the world of buy to lets or simply to add to your portfolio. Purpose built 2 bed flat in central Teddington that should get you around £1400pcm. If you end up having to pay the full asking price then that will be a gross yield of 4.5%. Not amazing but the capital appreciation has historically been very good in this area. (This flat last sold in 2005 for £192k - almost doubled in value in 9 years)!

No internal shots as its currently rented. Don't forget to check out the lease length and ground rent/maintenance charges - they have a habit of wiping out profits!!

  

http://www.rightmove.co.uk/property-for-sale/property-33027732.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Monday 24 November 2014

Where do you sit, Teddington Landlords, compared to other property investors?

So, this popped into my inbox the other day which I thought made very interesting reading. If you are an investor already or are thinking about becoming one then I think the main thing that comes out of it is that the majority of people aren't hardcore investors with a portfolio of 50 or 100 properties as we are often led to believe. Most are like you and I.......75% own 5 or less properties.
Also interesting is the fact that the passion for property is definitely not waning with 85% of investors looking to EXPAND their portfolio in the next 5 years!
So, if you want to join the investing gang, maybe you've been a bit nervous about it and don't know where to start, then please do give me a call or drop me an email. I'm happy to help.


Rebecca Smith
rebecca@rebeccasmithpropertyservices.co.uk 0208 398 9333
http://www.rebeccasmithpropertyservices.co.uk/

Friday 21 November 2014

Buy to let deal of the day - Isleworth Beauty!

I love this one! Its been done to a lovely standard - perfect for the rental market. It's not badly priced either compared to the other 2 beds on the market in the same area. I KNOW its Isleworth and not Teddington but, seriously, you'll have to get over that fact if you want a net yield better than 3%! And who's to say Isleworth won't outperform Teddington on capital appreciation in the next few years?!

      
So, it's a 2 bed maisonette on at £275k with allocated parking. Not far to walk to the train station either which is pretty important to get the commuter tenants.

You'd get in the region of £1250pcm for it giving you a gross yield of 5.5%. I'd take that! Just need to check out the length of the lease and also the ground rent costs.

http://www.zoopla.co.uk/for-sale/details/35211628#tJH1YreGU9sv7t6k.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Wednesday 19 November 2014

Care Act set to ruin even more legacies....

During my usual trawling of the property blogs/websites I came across this article which will be relevant to many of you and therefore definitely worth sharing!



Care Act Set to Ruin Even More Legacies
Care fees can decimate any legacy that property owners hope to leave to their loved ones, likewise with any legacy they might have expected to receive from their own parents. The new “Care Act” is set to make things much worse. Some industry experts are suggesting that the window of opportunity to get things sorted may be as little as 9 months! Care Act Set To Ruin Even More Legacies
The Care Act 2014 when it is implemented will make it even easier for Local Authorities to grab property …..or just a share of it!
Local authorities already have a wide range of powers and under the Deprivation of Assets Rule and can “claw-back” cash or property that has been given away. For example some authorities like the quick and easy method of bankrupting the individual and to claw-back the property under receivership law.
Currently the best legal methods of holding on to your equity involve changing how you own your property and how much share is in each spouses name. Even these legal means depend greatly on WHEN you made the changes. Left too close to the time of requiring care and all the local authority has to do is suspect it was for reasons of deprivation, the burden of proof lies with the home owner.
It looks likely that The Care Act will also allow local authorities to assess the person who receives the gift and hold them liable for the fees!. Likewise the Care Act may well do away with the position that a part share of property has no value. This has much logic when you consider that a part share could be worth many thousands of pounds.
The good news is that Care Act is not yet law and may not be fully implemented for a few years yet, but there exists is the very real possibility that any of it could be enforced retrospectively! The best guess of some industry experts is that home owners may have as little as 9 months to a year to take action to protect their equity.
I would strongly suggest that anyone with elderly home owning parents to find out NOW if they are serious about wanting to leave their home as a legacy. If they are, talk to me NOW and we can quickly assess what legal means, if any, would be appropriate for them. I would add the options on offer do include a unique trust arrangement that includes a money-back guarantee which can also reduce or even eliminate probate!
Like it or not the Care Act is coming, whether it affects your family is all a question of timing and acting.
Written by Gary Streeter


Definitely one NOT to ignore! No-on wants to give more money to the government than they have to!

Rebecca Smith

Monday 17 November 2014

How can you turn a rogue property in Teddington into a HOT property...?!

With Halloween well and truly over for another year (thank goodness!), its not just those knocking on your door that can frighten the life out of you! A property that is the victim of a difficult history can have the same effect for a landlord. This can therefore pose problems for letting agents in getting it off the market and into the hands of that perfect tenant.

Houses that have been used by previous tenants as brothels or cannabis factories, or have been home to squatters, can cause problems when trying to find a new tenant. Even properties that have been owned by uncaring or corrupt landlords can develop a long-lasting stigma that will stay with the property long after it has been sold on to a new investor.

Although, thankfully, few and far between in the Teddington area, it is by no means impossible to come across a rogue property and I've seen a few in my time!  Whilst it can be difficult to manage a property with a rogue reputation, it is possible to raise its profile within the community. Often the stigma can be very much in our own minds and will naturally pass away quickly. Even if the story of the property gets in the press, tomorrow there will be more exciting news, which over time, helps locals forget.

If a landlord is faced with a property like this, my suggestions would be to change the front door or paint it a new colour. Develop the front garden to make it look and feel different, then give the house a new name and display it. It would also be helpful to keep the rental price aggressive to ensure lots of potential tenants are interested. It may also be a good idea to give new tenants a good behaviour reward (or something similar) for their first year or so to help encourage a sense of responsibility.”
But, of course, the best solution is to avoid a property gaining a bad reputation to begin with...

My first advice to landlords is to use a reputable agent. Most criminals find properties using the private landlords advertising in local papers, knowing they are unlikely to conduct credit checks and inspections. Agents will carry out routine property visits and report back to the landlord as well as undertaking proper references. In this climate a lot of small reference agencies are opening up offering very cheap fees, but how reliable are they? Owner-run businesses, in my opinion, will give a far superior and honest service. My personal belief is that we need to push the government to regulate letting agencies and have fines in place for negligence or complete incompetence.

So, here are my five top tips to let ‘rogue’ properties...
1) Paint the front door a different colour or change it completely
2) Give the property a new name and invest in a sign
3) Transform the front of the house by adding trellis and plants, or re-designing the front garden
4) Ensure lots of interest by keeping the price competitive
5) Inform locals that a professional lettings agent has taken over the property and allow the agency’s good reputation to eclipse the property’s bad one.

Overall, time, as they say, is a great healer. As long as you manage your property professionally, conduct all of the relevant checks and work with a professional and reputable agent then you'll turn it around!

Now here's my picture of the day!


I bet you tried to copy it...!! :o)

Rebecca Smith

Friday 14 November 2014

Buy to let deal of the day - two bed in Hampton

Now, I drive past this block of flats regularly as its not far from where I live. For a couple of weeks now there has been a Dexters Sold sign outside so I'm not sure if it has already gone or not (agents are devils for leaving properties as for sale or to rent on the property portals to generate more leads which means you can never be sure whether its still available until you call to enquire - annoying)!

Either way, lets take a look at it....

  

Its a pretty big two bed in a gorgeous building. The good news is it needs some work doing which means you are immediately adding value. On at £315k, I reckon you can get some money off the price and spend on the refurb to still keep your total investment at the £315k mark. Done up I reckon this would be worth £340k, maybe even £350k. Given your rental would be £1400pcm, that gives you a decent gross yield of 5.3%.

http://www.rightmove.co.uk/property-for-sale/property-32775729.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Wednesday 12 November 2014

Buy to let deal of the day - Teddington 5% yield

So, everyone in Teddington knows Waldegrave Road. Nice, yes?! This little (being the operative word) one bed flat has been on the market for over 2 months and so a good chance of a deal to be done. The reason it caught my eye is that, aside from the fact there's an opportunity to get it below the asking price, it's also really quirky. Tenants LOVE quirky! :o)

  

Its on at £295k and should achieve around £1250pcm. That would give you a gross yield of 5% which, by itself, is pretty decent for Teddington. Don't forget though, you may be able to get an extra £10-15k off the asking price, particularly if you've got your finances in place and can progress quickly. AND you're in a prime area for capital appreciation which makes it pretty low risk in my book. Happy days! 

http://www.rightmove.co.uk/property-for-sale/property-32117304.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Monday 10 November 2014

Buy to let deal of the day - easy Teddington rental for over 5% yield

If you're after the easy life then this one is a bit of a no-brainer. Lovely 2 bed flat in high demand rental area of Teddington which needs nothing doing to it. It's big as well which always helps attract tenants and keep them for longer....

      

It's on at £335k which is about right for this location and with a rent of around £1500pcm you'll make a gross yield of 5.4%. Lovely jubbly! :o)

http://www.zoopla.co.uk/for-sale/details/35087766#Mya42idTH2JUQA33.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Wednesday 5 November 2014

Buy to let deal of the day - opportunity for a cheeky offer?!

For those of you that read my blog regularly, you'll know that one of my tips is to 'watch' a property for a number of weeks to see what activity there is. If it stays on the market for over a month then that can be an indication that a deal can be done. Don't forget, that owner is very probably paying a mortgage on the property and it is costing them to have it sat there empty each month and as time goes by they will become more and more receptive to an offer.

The simplest, and probably most effective, way to make money in property is to buy below market value (BMV). The decision of how much you will make from a property is at the point you buy it rather than sell it, i.e picking the right property, in the right location at the right price. Get that wrong and you'll never make money no matter what you do.

I've been watching this one for a while....it's been on since 23rd September and hasn't had a price drop so could well be open to offers. A 3 bed flat, 10 minutes from St Margarets - ideal rental territory. May need a bit of sprucing up but certainly won't break the bank.

     

http://www.rightmove.co.uk/property-for-sale/property-48313625.html

On at £379,950, lets say you can get it for around £360k and spend £5k doing the cosmetic stuff. Your rental would be £1600pcm giving you a gross yield of 5.3%. Not bad and could be even better if you can get more off the asking price...!

If you're thinking of buying a property to rent then please do give me a call or drop me an email - I'm happy to give my advice and would love to hear from you. 



Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/







Monday 3 November 2014

Who owns what in Teddington and the rise of the renter!


Last week, a couple from Isleworth, called to discuss potentially investing in the Teddington property market for the first time.

As my regular readers will know, the most important consideration you will make before investing in property is the balance between annual return and capital growth. However, what affects those two things in Teddington are very varied and complex. The quantity of property available and whether that property is owner occupied, social housing, or private renting can make a big difference on how much money you can make from it, in particular, the capital growth.

In 2001, owner occupation of property in Teddington was 72.45%. The significant change over the decade (2001 to 2011) was within the rental sector, where the proportion of households privately renting increased from 13.33% to 18.47%, whilst those socially renting had decreased from 10.29% to 8.4%.

Between 2001 and 2011, the total number of households in Teddington rose from 45,100 to 47,094, an increase of 4.24%. However, the percentage of households that were owner occupiers in Teddington dropped to 66.23%.

That doesn’t tell the full story though, whilst there was a significant drop in the percentages (72.5% to 66.2%), the actual numbers tell a completely different tale. Of the 32,683 households in Teddington that were owner occupied in 2001, that figure had actually increased to 34,014 households being owner occupied. So why the relatively significant drop in percentages despite the rise in figures?

In 2001, 6,014 houses were privately rented (13.33%) in Teddington but, roll on another ten years, and there are 8,701 households in Teddington that are privately rented (18.47%). The rapid increase in the number of households privately renting could be linked to the decline in the number of residents getting on the housing ladder, usually by way of a mortgage. This is mainly because of the increasing difficulty for first time buyers being able to raise deposits for a mortgage, which hasn’t been helped by rising property prices. This meant larger deposits, which are linked to the house price, were required. Also tighter lending requirements, especially in the wake of the recent credit crunch, meant a larger percentage of the house value was required as a deposit, as 100% mortgages became a thing of the past.

Finally, declining wage growth and rising inflation over the period exerted pressure on household spending and eroded the value of savings. This means that households have needed to save for a longer period in order to provide a deposit.

If you want any help or advice on any of this then please do feel free to give me a call on 0208 398 9333 or drop me an email at rebecca@rebeccasmithpropertyservices.co.uk. I am the founder and owner of Rebecca Smith Property Services and can help you to find your next rental property, find you a tenant AND manage it for you. The full whammy! :o)

My sister sent me this piccy - it's the simple things that make you laugh...!

Wednesday 29 October 2014

Buy to let deal of the day - 7.2% yield in Feltham

Ok, so if you live in Teddington then you probably don't want to invest in Feltham BUT you can't ignore the numbers. So, if you're looking for cashflow as much as, if not more than, capital appreciation then you should at least consider this one....

Definitely a bit of an ugly duckling but it's a 3 bed flat on at £195k, yes £195k - imagine that in Teddington!! It needs updating so you're adding value immediately and should only cost £5k to do. No pictures of the kitchen and bathroom though so you may need to push that up by a couple of k if they're as bad as I suspect they are. I'd also suggest a lot of NEUTRAL paint!!!! :o)

   

Looking at the figures, say you get it for a bit under the asking price and your total investment is £200k, you should get around £1200pcm rent which would give you a gross yield of 7.2%. Not bad eh?! 

http://www.rightmove.co.uk/property-for-sale/property-48902531.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/


Monday 27 October 2014

Buy to let deal of the day - renovation project in Twickenham

This one isn't for the faint-hearted as there's a lot to do! It's priced too high in my opinion given the amount of work which obviously needs doing. If you can get it for £385k (what its worth), spend £10k on it bringing it up to top spec and maybe re-jigging the layout a bit then, not only will you make about a 4.6% yield (£1500pcm rent), but you will have added at least £40k to the value. Also, the capital appreciation in this area will always be on the up, a little or a lot, but always on the up.

It's in a prime location in the middle of Twickenham a short walk from the train station with its fast link into London so high demand from tenants....



http://www.zoopla.co.uk/for-sale/details/34857519#GE74cohRjSGetlmM.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Friday 24 October 2014

Do two-bed flats on Twickenham Road make good investments for Buy to Let?

I was talking to someone who lives in one of those 1930’s 3 bed detached houses on Twickenham Road between The Wharf restaurant and the mini-roundabout on the way into Twickenham. That part of Twickenham road is primarily split between blocks of one and two bed flats and 3 or 4 bed semi-detached and detached houses. Research shows that most landlords like to buy their investment properties in an area they know and love which is usually within 5 miles of where they live. This landlord though was looking even close to home as he was interested in a two bed flat on his own road! He’d noticed my previous articles on property investing in Teddington and so asked my opinion on how good an investment they are and whether he should take the plunge. So, we looked into the figures…

Firstly, we found that of the 345 houses and flats on Twickenham Road, 213 of them have sold and changed hands since 1999 (some up to 5 times!), so obviously a good place to buy and sell. The average value of properties on Twickenham Road is £763,128 compared to the average across the whole of Teddington which is £731,308. So, an above-average performer.

Property values in Teddington have risen on average by around 328% over the last 14 years, but most flats on Twickenham Road have beaten that rise, rising on average by 364%. For example, a high spec two bedroom flat in Regatta House, the block next door to The Wharf, rose by 383%, from £199,950 in 1997 to £766,690 in 2013 – and this is one of many.


With excellent capital growth you would expect yields to be comparatively lower. Most two bedroom properties on the road can be picked up anywhere from £500,000 to £700,000 depending on the size and spec and could have achievable rents of £1700 per month. This means annual yields are around an average 4%. S, put simply, the answer to the question is 'yes'!

Now here's today's picture that brought a smile to my face....!




Rebecca Smith

Wednesday 22 October 2014

Buy to let deal of the day - well-priced 3 bed flat in Isleworth

I'm coming back to Isleworth! I know it keeps cropping up on my blog, and that's because I do believe its a good place to invest. It's walking distance to Twickenham and yet far cheaper. It has good transport links and, in my opinion, will outperform a lot of other areas around here in terms of capital appreciation over the next few years.

This one isn't the best looker but not so bad that it would put people off. 3 bedroom flat a 10 minute walk from Twickenham station, nearer than a lot of properties actually in Twickenham! It's on at £269,950 so, say you do actually pay the full asking price, you will get £1450pcm in rent giving you a 'not to turn your nose up at' 6.4%!

    

 

http://www.rightmove.co.uk/property-for-sale/property-46302802.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Tuesday 21 October 2014

Buy to let deal of the day - cheap as chips!

So this one is a nice, easy investment for those of you with a tight budget but who still want a decent property that will attract a decent tenant. It's a studio flat on Kingston Rd in Teddington done to a very high spec. 

It's on at £210k but has been on the market for nearly 6 weeks so there should be a deal to be done. I reckon if you can get it for £200k, you'll get £950pcm which gives you a not so shabby gross yield of 5.7%! Happy days!

  

(NB - the fact that you are cooking approx 3 yards from where your head is in bed may put you off but it won't put lots of tenants off so don't worry)! 

http://www.zoopla.co.uk/for-sale/details/34418329#qUtV3upMvvD7h4mD.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Friday 17 October 2014

Buy to let deal of the day - a one bed property in Hampton for £120k?!

Good morning blog reading friends!

Would you have thought it possible to buy a one bed house in Hampton for £120k? I wouldn't! BUT, this one came on last week so I thought I'd look into the details. Yes, it's the size of a matchbox, yes, it needs a good chunk of work doing to it and no, you or I probably wouldn't choose to live it it BUT that doesn't mean its not a good investment!

    
The one thing I would say about this one though is that you would definitely need to get a FULL structural survey done on it before any money changes hands - flat roofs can make me nervous if not checked out properly as the risk of leakage or damage (often caused by a botch job) is higher than on a standard pitched roof.

The possibility of adding value here could be huge when you consider the average price for a one bed in Hampton is £289k! It would obviously not reach anything like that value given its size and appearance but even half way there would make your investment worthwhile. I would put the rental figure on this at around £900pcm once renovated and so, say you spend a generous £10k on it, that would give you a gross yield of 8.3%!! :o)

http://www.zoopla.co.uk/for-sale/details/34767430#qr5bFUFZT3E752Ig.97

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/


Wednesday 15 October 2014

Buy to let deal of the day - 5% yield in Teddington!

Ok, so you should have gathered by now that if you want a high yielding property then Teddington is not the best place to buy! However, for capital growth on the value of the property, its right up there with the best of them (11% was put on the value of the average Teddington property in the last 12 months)! Therefore, its pretty rare to come across anything that will deliver at the magic number of 5% yield.....but this one does!

It's a 2 bed flat just off Kingston Rd on the Hampton wick side of Teddington. Nice standard so for rental purposes you don't need to spend anything on it. Good looking block too....

    

It's on at £300k, reduced by a whopping £50k from a month ago, which is a great price around here for a 2 bed flat (I would ask lots of questions of the agent as to why it does seem such a great price - my suspicion would be that it has a high ground rent/service charge and/or a short lease). That aside, you will get around £1250pcm for this any day of the week giving you a nice round 5% yield!

http://www.rightmove.co.uk/property-for-sale/property-32212227.html

Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/

Monday 13 October 2014

Your common tenant complaints,Teddington landlords, and how to resolve them...!



It's not rocket science, (which isn't a science according to my Dad, but that's boring, as I keep telling him!), to know that for a long and happy tenancy landlords should try and avoid complaints from tenants wherever possible. But, you'd be surprised how many landlords I've come across who see getting the tenant into the property as the objective and then ignore everything else from that point! A landlord needs to think of the tenant as a customer and remember that they must keep the customer happy if they want them to remain as a customer/tenant. Put yourself in your tenant’s shoes and think about how you would you feel if you had a complaint about where you lived... but were unable to rectify it without the agreement/involvement of a third party. Not happy!
Tenant complaints come in all shapes and sizes – from the subtle to the serious – and can range from opening the door to a dirty property at the beginning of a tenancy to lack of essential repairs during their stay...

Common complaints
There are a number of things that can cause tenants to complain during their tenancy but the most common complaint has to be the length of time it takes to complete a repair. Ultimately, repairs need to be done within a reasonable time-frame. How would you feel, for example, living without any heating or hot water? Things that don’t get fixed quickly enough is a common complaint from tenants, especially if they complain and complain and there’s no action from the landlord or agent.
Another common complaint is that the house isn't clean, or cleaned to the standard of the new tenant, at the beginning of the tenancy. One person’s clean is another person’s dirty and it’s important that the property is spotless from the outset. Remember it’s their new home and they will be excited about moving in. They won’t want to open the door and find they have to clean before they can move in their furniture – particularly if they've just moved from another rented property and left that clean.
Cleanliness is so important and it doesn't set the right tone for the tenancy if you fail at this first hurdle. The tenant might live there for a year, or two or three years, but when they come to the end of the tenancy they will remember that the property wasn't clean when they arrived. This is unlikely to encourage them to leave it clean and take the time that they should to end the tenancy appropriately. I always advise my landlords in and around Teddington to set the standard with a professional clean at the start of every tenancy and then to have it written into the contract that the tenants do the same before they check out. 
Also, it’s very important to look at the presentation and decoration of the property before the tenant moves in. They will have paid their first month’s rent and deposit and will want to walk in and feel that they've arrived somewhere that is now theirs. If the previous tenant has left scuff marks on the walls during their departure and the decor is looking a little tired, you should rectify this before the new tenancy starts. It pays huge dividends to go through the property and give certain rooms a lick of paint between each tenancy.

Take action
Avoid complaints by ensuring the property is clean and well presented and by carrying out regular inspections to nip any maintenance issues in the bud before they escalate. Also, think about the complaints previous tenants have made and aim to resolve them before they happen again.
It’s easy to avoid repeating historical complaints by looking at what previous complaints you've had and then doing everything you can as a landlord to try not to repeat the same issues. For example, I had one landlord with a property on Shacklegate lane who had a complaint about a window not opening or closing properly but it never seemed to get properly fixed despite his attempts! He then made sure that the window was replaced before the next tenants moved in to make sure the same complaint couldn't be made. Not difficult but you'd be surprised how many landlords wouldn't do this! 
Also remember to sort out teething problems quickly, i.e. dripping taps or tricky locks etc. This will help build a good rapport with your new tenant early on in the tenancy. Clear communication is also key to avoiding complaints. Ensure you always communicate your intentions clearly in order to avoid unnecessary misunderstandings. Clear communication will also help create a mutually approachable relationship so little niggles can be resolved easily and long before they grow into big complaints.

Simple solutions
Although it’s always advisable to stay one step ahead in order to avoid tenant complaints occurring in the first place, how should a landlord react if they do happen?
Well, the first thing is always to acknowledge a complaint. Have some empathy and never ignore it or downplay the impact that it’s having on the life of your tenant. It’s important to find out what the complaint is by getting to the bottom of it. Sometimes complaints mask themselves as something else. If you can get through the smokescreen and find out what it is that is upsetting the tenant you can focus on putting that right. Ask them lots of open questions to find out what the real issue is and what the impact the complaint has on them.
If you want to keep your tenant – and you want them to look after your house while paying the rent – it’s important to try and rectify anything that is worrying them in the most efficient way you can. Always give realistic time-frames and don’t set yourself up for a fall. Don’t over-promise and then fail to deliver. If you really can’t resolve the complaint, be honest! And be aware that sometimes people hear what they want to hear and not what you’re actually saying. If you’re giving a possibility, not a promise, then make this very clear.
Promising the earth and delivering nothing is just going to add to your tenant’s list of complaints – and this is one of the reasons why people will move on. Obviously, it depends on what the complaint is about but you should always explain what you are going to do to rectify it and the reasons why you are taking the steps you are taking in order to do so.
If you are at fault, then you could offer a gesture of goodwill to help make the situation better and in order to maintain a good relationship with the tenant. I know one landlord in St Margarets who has a case of wine delivered to his tenants whenever there's the slightest thing that puts them out. Needless to say, he's a very popular landlord!!

Whose responsibility?
The good news is that not all complaints about your property are your responsibility. Think about drains, ants, noise nuisance, chimney sweeping or smashed windows – your tenant has responsibilities too!
You may still choose to resolve their complaint but a good agent will help you decipher where the line is and ensure you don't end up paying for repairs that you don't have to.
And finally, a word of caution ... watch out for the persistent complainer and the over-demanding tenant – every now and again someone comes along who you will never please. Recognise this tendency early on in the tenancy and deal with these people proactively and assertively – not easy to do, but a professional agent will be able to help.”

The most common tenants complaints – at a glance
  • Lack of essential repairs
  • Maintenance worries
  • Unclear communication
  • Poor presentation of the property
  • Lack of cleanliness at the start of a tenancy
  • Slow responses
  • Not being listened to
  • Complaints not being taken seriously

How to resolve complaints – at a glance

  • Never ignore them
  • Tackle them head on
  • Ask lots of open questions
  • Get to the bottom of what the complaint is
  • Have empathy
  • Be honest
  • Put yourself in your tenant’s shoes
  • Explain what you’re going to do to put it right
  • Give realistic time-frames
  • Don’t over-promise
  • Avoid repeating behaviour that has caused previous complaints
  • If necessary, offer a gesture of goodwill


Rebecca Smith