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

Friday 10 October 2014

Buy to let deal of the day - Teddington Double!

Morning!

So the sun is finally shining on this Friday morning - for how long no-one knows so lets make the most of it!

I have 2 investment opportunities this morning as I couldn't decide which one to blog about so thought I'd just do them both. See which one appeals to you...

Down Road - Tenant in Situ

This came on yesterday. One bed flat in high demand rental area with tenants already in. It's a decent rental standard so you don't need to spend anything on it but it's by no means 'high-spec'! 

  

On at £300k, I called the agent and found out that the tenants are paying £1050 pcm. That would give you a yield of 4.2% in an area that's likely to give you good capital growth.

http://www.zoopla.co.uk/for-sale/details/34795600#EUALBBFA48Z17Ikl.97

Stanley Road

I've mentioned Stanley Road a few times on my blog as I like it for investments in Teddington. One of the more affordable parts of the town with high rental demand. This one caught my eye as it seems pretty cheap for what it is at £259,950, and, if you look at the fine print to the side of the advert you'll see that it was bought by the owners last September for £325k! I would do some questioning of the agent as to how that's the case when the owners have fully refurbed it in that time.

  

That aside, if you look purely at the figures, I reckon this will rent at around £1150pcm giving you a, very good for Teddington, yield of 5.3%.

http://www.zoopla.co.uk/for-sale/details/34610493#WQkPCISfSxUA1oYT.97


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

Wednesday 8 October 2014

Buy to let deal of the day - Isleworth 4.9%

There seems to be quite a lot on the market at the moment so if you're looking for an entry-level buy to let investment then you've got a good choice. I could go on and on about what to look for, the pro's and con's of each area and which type of property to buy and why, but if you want a relatively safe bet then go for a one or two bed flat, The demand will ALWAYS be there from professionals who aren't yet able to afford that first step onto the property ladder.

This one in Isleworth caught my eye for an investor who doesn't want to do any work and just walk into a ready made buy to let. It's a decent size two bed flat in Isleworth on at £359,950 and should rent in the region of £1400pcm due to the high spec. That would give you a yield of 4.9%. Not bad.

  

http://www.zoopla.co.uk/for-sale/details/34708727#UxcMFfjiBIVGuMy7.97

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

Monday 6 October 2014

Stanley Road or Harrowdene Gardens - which is the best road?!

I was talking to a couple last month who are considering becoming landlords for the first time and they were looking for advice as to which side of Teddington they should buy. They were familiar with Teddington and had been recommended separately to buy on both Harrowdene Gardens and also Stanley Road as they are seen as more ‘affordable’. They were particularly interested to speak to me to find out which I thought would be the better investment and whilst properties on both streets can let and sell well, I wanted to do a bit more research to help them with their decision.

Their budget allowed them to look in the £300,000 to £350,000 region, so looking at just flats in both streets, the average value of a 1 bed on Stanley Road is £285,000, whilst 1 beds on Harrowdene Gardens are around £332,000. To better understand the investment opportunities available, we need to consider the rents being achieved for flats in both streets. Currently, for 1 bed flats, Stanley Road is getting slightly more than Harrowdene Gardens with £1020pcm compared to £995pcm. However, to judge a rental investment, you must consider the capital growth as well as the yield.

In 1995, the average value of a flat on Stanley Rd was £70,000 and on Harrowdene Gardens, £75,000. This shows that the average Stanley Road flat has risen by 450% since 1995 and has an annual current yield of 4.3% a year whilst on Harrowdene Gardens, prices have risen by 442% and have a yield of 3.6%.
So, considering the fact that Stanley Road flats are cheaper, rent for a better yield and have increased in value more than Harrowdene Garden flats, the research has proved useful.

Ultimately though, the difference in the yields/returns or the increase in values between the two locations are not considerable. In this case, it depends on the best available property to buy on the day and what deal you can do to get the best price.




Rebecca Smith