Spotlight on investing in the North. Is it really worth it?!

I thought I'd use today's blog post to tell you a bit more about what I'm doing in 'The North'. I went to University in West Yorkshire and so know it well (first rule of property investing - know your area well or at the very least partner with someone who does).

We've all heard of the great returns you can make with student properties but we're also seeing a rise in popularity of HMO's (Homes of Multiple Occupation) for professionals too. It's a great stop gap for people who want to move out of the family home but can't quite yet afford to buy or rent a flat of their own. It is now both of these markets which I am catering for in Yorkshire with some fantastic returns for both myself and investors.

Along with a business partner who lives in Yorkshire, I am in the process of buying two large HMO's. Both are joint ventures with investors and so I have detailed the figures of one of them below...

7 bed HMO with a 1 bed self contained flat
Purchase price: £215,000 (I know - a bit different to Teddington prices)!

Deposit and fees: £65,000
This is being funded by an investor on a long term basis. I am paying him 1% per month (£650 in cash every month!) for a minimum of 5 years. Better than what he'd get in the bank, eh?! :o)

Remainder of purchase price is funded by a mortgage at an interest rate of 4% above base.

The total costs for the property on a monthly basis including interest on the bank loan, interest on the investor loan, utilities, management fee and insurance equates to around £2,000. That may seem like a lot except when you consider that the total gross income from the property is £34,750! (This is based on an occupancy rate of 50 weeks of the year to allow for small voids - it is now standard for students to sign tenancy agreements of a full 12 months and so you, as landlords, now don't miss out on a chunk of income for the year). 

Each of the 7 HMO bedrooms are already rented at £85pw and the 1 bed self contained unit at £100pw. This property is 0.1 miles from a University and so will rent every day of the week to students.

So....

£34,750 gross annual income divided by 12 months of the year gives a gross monthly income of £2,895.83. 
Total costs each month, as stated previously, are £2000
That leaves me a personal profit of around £895 each and every month and I own the property 100% without using any of my own money - not bad in my book! I also have a very happy investor as they are getting a fantastic return on their money over a long period of time.

If you'd like to know more about this then please do get in touch. I'm always more than happy to chat about property investing!

Rebecca

http://www.rebeccasmithpropertyservices.co.uk/
rebecca@rebeccasmithpropertyservices.co.uk
020 8398 9333

Teddington two bed flat with a decent yield

Although this isn't the prettiest block in the town that isn't what's important is it investor friends?! As long as the numbers stack up and you've got a pot of potential tenants (something you'll never run out of in Teddington) then you're buying the right investment property.

This is a good size two bed and from what I'm seeing at the moment, it is definitely size that is winning the tenant race as long as it's a decent standard inside.

      

http://www.rightmove.co.uk/property-for-sale/property-54343196.html


It obviously needs a spruce up, i.e. a lick of paint and maybe new worktops and unit fronts in the kitchen, but you shouldn't need to spend any more than £5k max. If you get it for around £320k, which is reasonable, then your max outlay, minus costs, is £325k. The rental on this is in the region of £1500pcm which would give you a gross yield of 5.5% - cracking for Teddington considering the average is around 3.5%!

Please do get in touch if you're interested in finding out more about buy to let or property investing in general - I'd be happy to have a chat.

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

Should we all be renting the homes we live in in Teddington?!

A pretty controversial title for today's blog, admittedly, but I read an argument for this recently that really rang true and I wanted to share with you.

I am part of a property investors network and mentorship program that meets every month. My mentor, Rob, regularly writes topical property articles and his most recent I found fascinating. He is a very successful property investor, earning over £300k per year from multiple property businesses, and yet instead of buying his most recent family home, he decided to rent it! Have a read and see what you think about his reasons why....

"The house I have just moved to is a rental property!

Now – if you’re like me you’ll have been brought up and conditioned by society that we should try and own the house we live in. Personally – I’ve owned my own house (well, a few different ones thanks to the RAF lifestyle!) since 2005 and never thought I would ever be “wasting” money on rent again.

But over the last couple of years my mindset has changed considerably – and I want to propose an alternative for debate here. (Please note – there will be no right or wrong answer and everyone will have different points of view on this. I am not suggesting any course of action but am very interested in your views..!)

The main paradigm shift came after reading Rich Dad Poor Dad and understanding the importance of owning assets rather than liabilities. I’m sure that you will have read the book but if not – please do – it will change your life!

So – many of us consider our homes to be our prize asset – but it could be considered that your home actually falls into the liability category. You may have a lot of equity tied up in it not working for you & it also costs money to maintain.

I didn’t really take this notion seriously until I decided it was time we needed a larger house to accommodate the (rapidly) growing family. You know the story – buy a young professionals shoebox in a trendy area when life is free and uncomplicated and all of a sudden you have 2 toddlers tearing the place to pieces…!

So – onto the house hunt. When we sat down and did the figures some things suddenly jumped out at me.

The type of property we wanted to move to (which will be the place our kids grow up in), was hugely expensive.

As a self employed investor – it was going to be difficult to get a residential mortgage to buy said house.

So lets put some numbers to this:

We would have had to put together a deposit and stamp duty of around £250,000 to make the move worthwhile. As a professional property investor there was no way I wanted to tie up that sort of money in my own house at this stage of life, even if it was just lying around in the bank account!

So – plan B. Start saving money from the cashflow produced through our existing assets. Hypothetically – if saving at £2000 per month (which would certainly impact quality of life), it would take over 10 years to save the deposit…

Again, if you’re like me I would assume that you wouldn’t want to sacrifice all of that cashflow now to save for a house you may be able to buy in 10 years time. Lets not even take into consideration that property market growth may well exceed your savings rate so actually the deposit you’ve accumulated will not buy half the house you need now…

You would also have to factor in the opportunity cost of not having all of this money working for you. If you invest £2000 a month over that same 10 year period wisely, it will compound and multiply many times. Just with a very basic Buy-to-Let investing strategy you would be able to buy 1-2 investment properties in your goldmine area every year….!

No – I want to enjoy life with the kids now. You only get one chance at that.

So – plan C. I sat down and did the figures and the answer literally jumped off the page…

I think as professional investors and financially literate people we can find the opportunity in any market. You will probably know that the rental market does not follow the same trend as house prices – so as properties get more expensive, their rental values start to shallow off. Therefore, we can rent truly fantastic houses for not much more than much cheaper ones…

After working all of this out on my trusty spreadsheet it became obvious that I could rent our dream house – and then by releasing equity by selling my current house, we could generate cashflow from buying BTL properties straight away that would cover 75% of the new rent.

Of course, if you are a bit more savvy and can buy well and recycle the deposits – within one refinance cycle the cashflow generated from the new assets will be in excess of the personal rent.

Lets put this in layman terms.

If you have equity in your own house and using these figures, within 1 year you could be living in your dream house for free. In fact, better than that, you will be in a positive net cashflow position.

This is an exciting concept.

Now, I do want to be impartial and discuss both sides of the story. Before making this decision, I brainstormed the downsides. This is what I came up with:

You would no longer have a residential mortgage. On consultation with my brokers this may affect lending criteria with some BTL lenders but shouldn’t be an issue with most.

You are not paying off your own residential mortgage. This was a big consideration – but what is important to remember is that you will be re-investing the equity in multiple investment properties which will carry on compounding in value over the years.

If market conditions change (i.e. interest rates shoot up) then the cashflow from your assets will be eroded and may not be able to support your personal rent. This is why it is important to stress test all of your numbers. In all honesty – any market change produces more opportunity which you – the savvy investor – will be able to capitalise on anyway to increase your wealth! (We will discuss that in a future blog).

So – what are the options for the future?

Option 1 is to live in rented accommodation for your whole life, funding it from the cashflow produced by your ever compounding portfolio. You have huge flexibility in life, especially as we are moving to an ever more transitory and mobile lifestyle.

Option 2 is to get to the stage where you have excess cashflow and you can hedge your investments to something which maybe more liquid and then build up a pot to buy your dream house. (Or you could sell some of your assets in the future to fund your own house).

Regardless, why wait for 10-15 years, scrimping and saving to live in the space you need to flourish and grow when you can have it right now, and be financially better off at the same time?

I’m sure, by now, you will have an opinion on this discussion – but there is a 3rd possibility for the future. If you are savvy there will be the opportunity to take an option to purchase your rental property at todays market price and benefit from any market rises. After all, many high quality properties on the rental market are there because the owner hasn’t been able to sell and is now an accidental landlord – you are actually helping them out as well."

So...what do you think?! Seems to make sense to me! If you want to discuss any of this or how you can start to invest in property then please do get in touch - I have some exciting stuff going on at the moment I'll gladly tell you about! :o)

Now for today's picture. Another one from my sister, Jodie, who sends these to me pretty much daily!

Rebecca Smith

rebecca@rebeccasmithpropertyservices.co.uk

020 8398 9333

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

Buy to let deal of the day - add value in Twickenham

The best recipe for doing buy to let is to follow this simple formula:

1. Buy below market value - i.e find a deal that needs work!
2. Put in new kitchen, bathroom and redecorate neutrally to add value with little cost and to appeal to as wide a range of tenants as possible
3. Get good tenants who pay on time and stay for a long time
4. Refinance the property as soon as you can and use the funds gained from adding value to do it all over again! 

Now that may be all good, I can hear you say, but nothing is ever that simple and that's true. However, if you can get as many elements of this formula right as possible though then you'll be well on your way to being a successful property investor. More about this in a future blog I think as I can feel myself going into rant mode....!

Spotted this little gem on Rightmove this afternoon that looks like it could fit the formula pretty well:




http://www.rightmove.co.uk/property-for-sale/property-53780537.html

There's no more pictures as it is described as being 'in need of modernisation'. This short phrase should make your ears prick up as you can add value to the property which is a key part of my successful property investing formula. Lets do the sums...

Purchase price - £315k (should be more like £300k)
Work needed - £10k (complete guess but you should be able to do the basics for this if you're clever)
Post works value - £340 - 350k approx
Rental value - £1600pcm
Gross yield - 6.2% (based on total investment of £310k if bought at reduced price)

Now there are a lot of 'what-ifs' there but this is all perfectly possible and is something I am doing with investors on a daily basis. If you'd like to know more then please do get in touch as I'm more than happy to offer advice and help.

Now here's another funny piccy from my sister. She sends an endless supply, just a shame most of them are completely inappropriate!!

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

Buy to let deal of the day - Twickenham cosy one bed!

This is a cutey! It pretty much ticks every rental box....

Good location with fast links to London? TICK
Neutrally decorated? TICK
Spacious? TICK
Would rent every day of the week?! TICK!

     

http://www.zoopla.co.uk/for-sale/details/37396201

Two questions arise for me...
1. How long is the lease as it's not mentioned in the details?
2. There's no external photo so I'd be interested to see what the building looks like and what the access is like

Also, don't forget to take into account the service charge as might be pretty meaty which could seriously eat into profits.

Let's take a look at the numbers. It's on at £255k which is very reasonable given its location. Another reason why one of the above questions may be affecting the value. If not, however, then you might get it for a nice round £250k. It should rent for around £1200pcm which will give you a gross yield of 5.8% - very healthy for these parts.

Nice little starter pad for a new investor or one to top up the portfolio if you're more experienced.

If you have any questions about the local property market at all then please do feel free to get in touch. I don't charge anything for a chat or email! I own my own letting agency but also source properties for investors.

As an aside, I had to share this with you. My sister is an avid reader of my blog (more out of sisterly support I think rather than any interest in property!) and so she likes to send me pics to put at the bottom. Therefore she is solely responsible for this one and sums her up to a T! :o)

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

Are landlords to blame for Teddington’s rising house prices?

The South East of England property asking prices jumped by more than £4,000 to £376,862 in May according to Rightmove, an increase of 1.1% from April but only 3.1% higher than a year ago. After the traditionally quiet months of January and February, the property market starts to heat up, but talking to some Teddington Estate Agents, they are reporting their lowest ever stocks of quality property for sale. However, asking prices have no relation to what property sells for! With property, the definition of price is what someone is prepared to pay, not what the agent thinks it’s worth!

So, is the issue a lack of supply?

Putting aside Teddington’s housing supply shortage, (according to the last Census, across the Twickenham/Teddington area we only built 561 properties in the last decade, but the population of the same area grew by 8,527)! This is now, according to some people, being exaggerated by an increase in homes being owned by buy to let investors. Landlords tend to be buying a property as part of a long term pension plan and are more likely to keep it for longer than an owner occupier would. I have also seen unwillingness among homeowners, thinking about moving, to put their own property on the market as they can find few suitable properties to make it worth their while going through the whole moving process. There are some new build developments underway in the Teddington area though, so hopefully with the influx of some new properties, this should level out the property market again. (How affordable they are though when including the developers premium in an already premium area is a whole different issue)!

What I would say to that is that I believe this is the new norm in the Teddington property market and is the consequence of not enough homes being built to meet the escalating growth in household numbers. This will inevitably result in a lack of quality homes for sale in many popular areas of Teddington.

When one looks at the historic data, in May 2007, there were 327 properties on the market in Teddington compared to today’s 234. Should we be worried?  Well in May 2010, there were 268 properties for sale in Teddington but six months later in November 2010; this had jumped to 315 properties, for it to drop to 248 properties in January 2011. The number of properties on the market is a cyclical thing in Teddington; it always has been and always will be. As we go into the summer of 2015, the number of new properties coming onto the market will increase... just as the sun will shine!

So are landlords to blame? Well, on one side of the coin, yes they are. If they buy a property to rent out, that means someone can’t buy it to live in. However, it doesn’t matter if someone wants to live in a property if they can’t afford the deposit and upkeep. So, on the other side of the coin, if the building of new properties is slow and people can’t afford the large deposit for the mortgage, then Teddington landlords have stepped in and bought property to rent out to them. Local landlords have bought 2698 properties over the last decade and now house 20,857 people across Teddington and Twickenham alone.

There is also an issue with the supply of housing in the rental sector. Whilst investor landlords are buying more property, where properties are currently tenanted, tenants are not moving out because they are unable to buy due to reasons mentioned earlier. This is having an impact on the rental prices as well, with average rental prices having risen by 23% in the last 2 years.

That sounds like a win-win situation for investors to me! It will be interesting to see what happens once the new developments in Teddington are completed.

The demand from Teddington tenants for Teddington property is only set to rise over the coming years. If you want some advice on where (or not) to buy, please do email or call me. I’d love to hear from you!

Rebecca Smith

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

Buy to let deal of the day - back to Isleworth...

I do like Isleworth! In my opinion it will get great capital appreciation in the next 5-10 years and prices are still 'affordable' enough to give decent yields. A rarity in these parts! :o)

This one caught my eye this morning. I know the road as I've sourced a couple of flats there for investors before. They've always rented easily as its a short walk to Twickenham road where you can jump on a bus to Twickenham station for the fast link to Waterloo. A key criteria for most tenants.

      

In an ideal world you'd replace the kitchen and install central heating as it looks like its got storage heaters but these are by no means essential for the rental market. You would get a bit more rent than if you just left it but it would take a long time before you get a return on your investment so I probably wouldn't bother.

So, how do the numbers stack up? Well its on for £309,995 which is a decent price. I'd probably push for £300k and if you achieved this, with a rental figure of around £1300pcm, you'd get a yield of 5.2%.

http://www.zoopla.co.uk/for-sale/details/37354171

If you're interested in investing in property then please do get in touch. I'll happily give you the benefit of my experience and a chat is always for free! :o)

Rebecca Smith

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

Buy to let deal of the day - lovely Teddington two bed

Those that are regular blog readers will know of my love affair with Stanley Road and Harrowdene Gardens as buy to let investment areas. They are hugely popular with renters and the prices haven't gone quite as mad as the rest of Teddington...yet! :o)

This one caught my eye this morning. A 2 bed flat for £385k isn't bad so if you can shave a bit off that it'll only add to your profit. Its not perfect as you can't really add much value but I think the capital appreciation on this going forwards should be pretty decent and that's where you'll really make money. It's so nice you could rent this out from the moment you get the keys....

      

http://www.zoopla.co.uk/for-sale/details/37135967

This should easily rent for around £1400pcm which, if you pay the full asking, will give you a gross yield of 4.4%. Decent investment in my eyes especially when you consider the value is only going to go one way!

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

Spotlight on Huddersfield...should Teddington landlords be investing in the North?!

Now, I'm going a bit off-piste with today's blog because I want to talk to you about how you can make your property investment strategy fit your lifestyle and personal circumstances better.

Yes, I think Teddington is a great place to invest in property as you're never going to lose out in the long term with the rate of capital appreciation. The demand from both residents and tenants coming into the area is growing more and more each year which is pushing up house prices and rents alike. Good news if you already own property but not so good if you're trying to buy here.

So, what if you don't have a big pot of money to pay the current asking prices?! And what if you can't afford to wait for the capital to appreciate and you need cashflow now?! Well that's when you go North...! :o)

I've spent the last 2 years reading, researching and developing my long term investment strategy to create cashflow and its something I'm now able to do with other investors. All of the research that I have done ultimately points at Huddersfield for reasons too many to go into here. However, the snapshot is that the prices are very affordable (£50-60k for a 2 bed terrace), rents are good and the yields are therefore a minimum of 10% gross. Compare that to the average in Teddington which is 3.6% gross!! Added to that, a huge advantage is that there is demand from a broad cross-section of tenants, from University students to families to blue collar workers. No, you're not going to get the capital appreciation of Teddington but you will get cashflow and, if you buy lots, it won't take long before you can replace your income. I can show you how you can buy lots with just ONE pot of money that you use over and over again so you never run out of money. Woohoo!

I have created a 'power team' in Huddersfield who source properties for me, refurbish them where necessary, find tenants and then fully manage the property. I only therefore need to actually venture into 'the north' once a month at the most! A great hands off investment strategy. 

The perfect scenario would be to buy in both Teddington AND Huddersfield if you can afford to, to benefit from the capital appreciation and the cashflow together. However, I appreciate that's a luxury many of us don't have (including me)! So, if you're objective is to create long term wealth and you don't need the cashflow then stick to Teddington. But, if you want to create a replacement income that could have you leaving you J.O.B (Just Over Broke) in as little as 2 years then you need to go north and, for me, Huddersfield is just the ticket! :o)

If you want to know more then please do get in touch. I'm more than happy to chat through with you what I'm doing - I don't charge a penny I promise. I'm just starting to share this strategy and work with investors to show them how to build their portfolio to perfectly fit what they want to achieve, and I can help you to do the same. 


Rebecca Smith
0208 398 9333
rebecca@rebeccasmithpropertyservices.co.uk

Rents paid by tenants in Teddington are on the rise…

As we are approaching half way through 2015 (frightening!), I was talking to a local landlord the other day about what is happening to the level of rents that are being achieved in the Teddington property market.

In terms of rents in Teddington, it appears that rents being achieved for new rentals (i.e. when the tenant moves out and new tenant moves in) have risen by 8% in the last 12 months. However, landlords with existing tenants are generally not increasing their rents in line with this rate. Most landlords prefer to keep their existing tenant paying the same rent and have the peace of mind that their tenant remains thus reducing the risk of a void period.

It must be remembered rents nationally dropped by 7.8% over 2008/9, due to oversupply in the rental market in 2009. A lot of the people who couldn’t sell their property in Teddington in 2008/9 when the Credit Crunch hit in 2008, decided to let their house out instead of selling at a loss. In fact, the number of houses on the market in Teddington dropped by 30% between March 2008 and March 2010, a lot of which came on to the rental market in Teddington. However, looking at the longer term though, tenants have had it good because since the turn of the Millennium, average wages have grown by 46%, but rents outside London have only grown by 36% rental growth over this period.

I told the landlord that there is a lack of new rental properties in Teddington coming on the market, in fact according to Rightmove, there is an average of 21 new rental properties are coming to the market each month in Teddington, but when we have registered on average 36 potential tenants each month since January, something will have to give soon! This is compounded by the fact a number of landlords are looking to sell their rental properties in the coming months, as the property market in Teddington has improved (more so since the election results). This further compounded as tenants in existing rental properties appear to be staying in properties for longer periods of time.

Even though rents have kept pace with inflation in the past, renting as an option has become more affordable, and is increasingly seen as a lifestyle choice. With returning economic growth and expected increases in the rate of growth of wages, above inflation rental growth could rise.

If you want a chat about the local Teddington property market, whether you be a current landlord or aspiring investor, please do drop me an email on Rebecca@rebeccasmithpropertyservices.co.uk or give me a call on 020 8398 9333. I’d love to hear from you.

Rebecca Smith

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

Buy to let deal of the day - easy peasy Teddington 2 bed...

This is for those of you that like to take the easy option when investing, but still want a good return. Its a great size 2 bed flat in Teddington (admittedly the Hampton Wick end of Teddington, but still Teddington)!

This definitely doesn't have 'kerb appeal' (i.e its pretty ugly!) but remember from previous posts that this isn't a big issue on the rental market. Renters aren't looking for their dream home and so will compromise more on what it looks like on the outside rather than how the living space works for them. No work needed, not even a lick of paint. In fact the only downside I can see is that it only has a shower room rather than a bath which will put off the family market You could consider trying to squeeze one in but personally I wouldn't bother as it will still appeal to a wide enough market to rent every day of the week.

    

http://www.zoopla.co.uk/for-sale/details/35417943

I don't know if its just me but does that look like a dishwasher under the hob to you?!?! Random!

Lets see how the numbers stack up. Its on at £339k which I think it a bit ambitious given the Hampton Wick location. I'd be looking to get it for £330k. If you do manage that price then it will rent for around £1400pcm which gives you a gross yield of 5.1%. Sweeet! :o)

Someone mentioned to me the other day that, despite enjoying reading my blog, they didn't actually know why I wrote them or what I did. I thought it therefore worth re-iterating that first and foremost I am a letting agent and I love helping landlords and/or investors find a property that fits what they're looking for and then find the perfect tenant for it. If this is something you're interested in knowing more about then please do get in touch. I'd love to hear from you and I respond to every email I get the same day I get it, without fail!

Rebecca Smith
020 8398 9333
rebecca@rebeccasmithpropertyservices.co.uk

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

What's happening in the Teddington Property Market post the General Election?

Even with the General Election just gone, property values in Teddington are still 1.31% higher than they were 3 months ago, the uncertainty and ambiguity of an election typically makes house sellers who need to sell, price their property more realistically (although this only lasts a couple of months). Looking specifically at it from a Teddington landlord’s point of view, the Teddington properties favoured by investors are in short supply in many parts of the town because of a number of factors. One of the major factors has been that we have seen the number of first time buyers coming to buy their first home increase over the last 12 months in Teddington. 

As I mentioned a few weeks back, the pension rules are changing which means buy to let landlords can use some, or all, of their pension pot to buy a property.  It shouldn't be forgotten there are tax implications when taking more than a quarter of your pension pot out (see the article from a few weeks ago). So, whilst many pension pots may not be able to fund a suitably big enough tax free lump sum to buy the property outright, for most it will provide enough for the 25% deposit (required by most BTL mortgage providers). It shouldn't be forgotten, landlords, that the interest paid on the mortgage is tax deductible against the rent, thus lowering your income tax paid. Woohoo! 

In the last 12 months, I have noticed a particular uplift in interest from ‘50 something’ Teddington people wanting to become landlords for the first time. In Teddington, the highest returns for the lowest investment are at the lower end of the market e.g the one and two bed flats . Unfortunately, flats with one or two bedrooms are coming to the market in smaller numbers than the larger four beds in the top end sectors of the Teddington property market. When looking at the actual numbers, in the later part of the Summer of 2014 in Teddington, in one month alone 121 two bed properties were on the market in Teddington. However, in January this year, a notoriously excellent bumper month for properties coming on to the market, there were only 101 two bed properties on the market in Teddington to choose from. Today, that figure stands at only 107..whilst the number of four and five beds has increased significantly ...  interesting don’t you think? 

At the lower end of the property market in Teddington, (i.e where first time buyers and landlord investors compete with each other to buy those smaller properties), I believe throughout 2015, there will be a slow and steady tipping of the scales between supply and demand. In fact, from what i am seeing and hearing, early anecdotal evidence has suggested over the last few months (although we will need to look at figures later in the Spring once we have the data from The Land Registry), that we are beginning to see a polarised Teddington property market. This is where we have high demand but low supply at the bottom end of the property market, yet high supply but lower demand at the top end of the market .. and that can only mean one thing ... prices will go up quicker on the smaller properties than the larger ones in Teddington, thus narrowing the gap for people looking to move up market!

If you are looking for advice on the Teddington property market, particularly with regards to buy to let, or would just like to use a local independent letting agent to manage your portfolio who is really passionate about the local property market then please do get in touch. I'd love to hear from you! :o)

Rebecca Smith

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

Buy to let deal of the day - Hampton 5.6% gross yield

This one has recently come back on to the market after an investor I was sourcing for decided not to go ahead with it. They only changed their mind as they moved the location of their search and so its still a good little buy to let. Thought it worth telling you about in case anyone wants to pick up where they left off!

     

A survey has already been done and it came back fine so that's one less expense and thing to worry about. Its a cracking little flat in a great location - just a 2 minute walk from the station and Waitrose. Big rooms with the added bonus of a separate kitchen rather than one in the lounge. It's also got loads of storage which is something pretty high on tenants lists when looking at one bed flats as they're notoriously poor for space to put things.

Should rent for around £1000pcm which, if you pay around £215k for it (perfectly possible ;o) ) then your gross yield would be 5.6%.

If you're interested in getting into buy to let or are just looking for a pretty decent letting agent :o) then please do drop me a line! Be great to hear from you and I'm always happy to offer advice for free!

http://www.zoopla.co.uk/for-sale/details/34228348#M9JcUFdehTXe1utU.97

Rebecca Smith

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

Buy to let deal of the day - 5% gross yield in Whitton

Love this one! It could only be made better if it needed a speedy refurb so you could add value as well. However, if 'get in - rent it - get out' is your bag then fill your boots with this one - it's fab!

      

http://www.zoopla.co.uk/for-sale/details/36544114#PYuFBlGW7d6SHKsZ.97

Cracking location just a 5 minute walk from Whitton station on a lovely leafy road. Its on at £325k which is definitely the top end of where I'd value it so certainly don't pay any more than this. Ideally you want to get it for £315-320k. It will rent every day of the week for at least £1350pcm giving you a gross yield of 5% even if you pay the asking price, so potential to squeeze a bit more from it.

Only downside is that its a flat so you will have service charges to pay. Its not a new block though so should be more reasonably in the region of £600-800 per year (rather than the £2k per year you sometimes have to pay in the newer developments - ridiculous)!

Please do get in touch if you have properties you currently rent or are looking to expand your portfolio. First and foremost I'm a local independent letting agent and I also source properties for buy to let investors. If you want a chat though - that I can definitely offer you for free! :o)


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

Buy to let deal of the day - scruffy gem in Isleworth!

I've blogged about this one before but its worth another visit to show you the kind of thing to look out for in an investment property. Its not a beauty parade - you're going for return on your investment!

Now for this one you need to use your imagination. It's 'scruffy', to say the least, so probably tenanted or has an owner who doesn't take much pride in their home!

      

http://www.zoopla.co.uk/for-sale/details/36592034

See what I mean?! Cant believe they couldn't even be bothered to make the beds for the photos!! 

What it does have going for it though is the price and the location. It's less than a 5 minute walk to Isleworth station and is on the market for £254,950. That's a good price for a 2 bed in this area. As soon as its emptied of all the messy stuff it will be a pretty decent flat that probably just needs a lick of paint and new carpets. It will rent in the region of £1350pcm which, even if you pay full asking (which you probably won't have to) would give you a gross yield of 6.4%. Nice!

Please do get in touch for a chat about anything buy to let - would love to hear from you!

Rebecca Smith

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

The way it works in Teddington is this: You have to rent where you want to live, or buy where you don't want live....!

I had this really interesting chat with some of my tenants the other day on renewal of their tenancy agreement. They are a lovely couple in their early thirties and I know they have decent jobs in London. They have been tenants of ours for a while now, so I know them quite well. We got talking and I asked if they had ever thought of buying a property for themselves, to which they replied back with the title of this article. It made me think and so I did some more research into the subject which I want to share with you.

After the end of the Second World War, just over a quarter of the UK population owned their own home, the rest rented from private landlords or the local Council. However, if someone told you in the 1970’s and 1980’s that they rented, they were considered a second class citizen! Everyone wanted to own their own home .. it was the done thing. We still think that home ownership will inevitably happen, but it won't. 

It all changed in the 1970’s when two things happened. Firstly, the number of people who owned their own home broke through the 50% barrier in 1971 and by 1981 it was at 57%. Tied in with that, the average house prices in Teddington were doubling at one point every four years in the 1970’s so property and profit started to feed off each other. To put that growth in context, if we were to look at the last 85 years in Teddington, in 1930, the average Teddington property was worth £835. The average property value in Teddington currently stands at £708,101. It's not hard to do the maths!

We could blame Maggie Thatcher for making home ownership the ultimate goal, but what we now need to consider is that the country is turning on its head and we need to, as a country, love renting again. Some blame the banks, but obtaining a 95% mortgage is hard work, but nowhere near impossible. A typical Teddington first time buyer would only need to save £17,000 for a deposit and fees and they could buy a pretty decent one bed property. For example, you could buy a property on Stanley Road in Teddington, and it would be cheaper each month in mortgage payments than renting.

People might say on the surveys they want to buy, but when it comes down to it, if you have been living in a lovely big house on Fairfax Rd, but the bank will only lend you enough to buy a two bed flat on the Harrowdene Gardens estate, what would you do? Don’t get me wrong, Harrowdene Gardens has really pulled its socks up over the last ten years, but it isn't Fairfax Road, is it? Again, if you were a twenty something, what would you do? Have another read of the title of the post ... “The way it works is, you have to rent where you want to live, or buy where you don’t want to live,”

With tenant demand only going in one direction, that is probably why more and more people are getting into buy to let in Teddington. With the new rules on pensions and the ability to use them to buy residential rental properties from April onwards, this could be the time for you to buy a rental property. You must take advice on your pension from an Independent Financial Advisor (there are plenty in Teddington) and you must take advice from people who know what to buy (and not to buy) in Teddington to ensure you get the best from your investment.

Please do give me a call or drop me an email if this is ringing true with you - I'd be happy to offer you my opinion - a chat doesn't cost you a penny! :o)


Now I have to apologise for today's picture, its a little close to the bone, but definitely made me laugh!



Rebecca Smith

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

020 8398 9333
rebecca@rebeccasmithpropertyservices.co.uk

Buy to let deal of the day - lovely Teddington 2 bed

This is a classic case of not so pretty on the outside but lovely on the inside. Now don't forget, for the rental market, what it looks like on the outside is FAR less important than for the sales market so don't let it put you off. The outside isn't actually that bad with this one and the inside MORE than makes up for it...!

    

http://www.zoopla.co.uk/for-sale/details/36268084

Lovely isn't it! So how do the numbers stack up?? Well if you buy it for the offers over price (which I think is a very good price so you might be lucky) of £335k and achieve the market rental figure of £1400pcm then the gross yield works out to be bang on 5%. Great for Teddington which is notoriously 'not great' for yield but much better when it comes to capital appreciation.

Do drop me an email or give me a call if you have any questions about buy to let - happy to help! My contact details are on my website below...

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

Support Teddington's playing fields..

Not my usual property topic today folks but one that many people have brought to my attention recently. Worth mentioning and therefore supporting in my book.

Imperial College, the owner of 13 acres of playing field bounded by Udney Park Road, Kingston Lane and Cromwell Road in Teddington, has recently put the site up for sale.
This is something that should be, and is, close to the heart of many Teddington residents and @Teddington_Town is helping to support the bid. Below is a quote from the Teddington Town website...

"After Imperial College ceased sporting activities at their sports fields on Udney Park Road, rumours have been rife about the future of the 13 acre site in the heart of Teddington. The process is now open for bidders to make themselves known but the desperate need for local sports facilities, green spaces and protection against over-development has led to the formation of a concerned group Space to Play. 

Space to Play is a community consortium of local sports clubs, schools, businesses and residents that are coming together to ensure that the Imperial College playing fields remain an open space and a dedicated sports facility that can be opened up to the whole community. Local sports clubs and some schools are in need of extra playing fields in order to meet the demand from local families – many have long waiting lists to join clubs 

The group needs support of local residents to ensure that this ‘presumption’ becomes a ‘conviction’. Interested parties must put forward proposals in the next few weeks and a community bid would almost certainly be the best way of safeguarding as much of the land as possible. Visit their website for more info and to add your signature to their petition if you are also concerned about the future of the site."

Have a great weekend! (Back to property stuff on Monday I promise)! :o)

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

Buy to let deal of the day - cash buyers only in Teddington...

So this maybe isn't a property to cut your teeth on in the investing world but isn't something you should be frightened of either. If you can raise the finance without using a mortgage then you should definitely consider it.

It's a 2 bed flat in Harrowdene Gardens (one of my favourite Teddington buy to let locations). Now the reason it's for cash buyers only is because it only has a 60 year lease on it and lenders won't consider anything under 75 years as a general rule. Given the fact that it needs work doing to it as well I think they're being a bit over ambitious with the price. I wouldn't offer more than £325k for it. It will then cost you anything up to £20k to extend the lease and then you'll need to spend about £5-8k renovating it. (Don't forget, when you renovate for buy to let its not the same as renovating your own house - only do what you need to do to a decent standard but don't spend on anything that's not necessary as it will just eat into your profits).

    

http://www.zoopla.co.uk/for-sale/details/36446807

Lets do the figures...If you pay £325k for it, spend £8k on it (worst case) and then renew the lease for £20k, you've spent a total of £353k before fees. It will then be worth in the region of £400-425k by my reckoning which would give you an average profit of around £60k! The rental figure for this would be in the region of £1250pcm giving you a yield of 4.3% - decent for Teddington.

Don't forget, if you don't want to leave that much money in a property you can take a mortgage out on it after you've renewed the lease and owned it for at least 6 months. You can then get some, or maybe even all, of your cash out and either go on a lovely holiday or buy another one! :o)

As always, please do get in touch if you have any burning property questions - happy to help!

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