Buy to let deal of the day - fancy making yourself 75K profit?!

Trawling through Rightmove and Zoopla, as I do daily just to see whats out and about, I came across this one. It's a perfectly proportioned (i.e great for the rental market) 3 bed semi in Isleworth which needs a new kitchen and redecorating throughout. Bathroom looks up to scratch so that'll save you £3-5k on the refurb costs.

       

http://www.zoopla.co.uk/for-sale/details/35614931

What made me stop and take a closer look at it was the price. It's on at £389k and probably needs just £10k spending on it, maybe £15k at a push. However, when I did a bit more research I can see that there are 61 3 bed properties currently on the market in Isleworth with an average price of £475k. Interesting huh?! That means you have the potential to make up to,or even over,£75k gross profit just from doing a simple refurb.

When we look at it as a buy to let that doesn't disappoint either. You'd get £1650pcm for this which, when you take into account your total spend of £400k (purchase plus refurb) that would give you a gross yield of 5%. Nice little investment in my book!

Rebecca Smith

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

Buy to let deal of the day - tidy 4.9% yield in central Teddington!

This came onto the market yesterday and it pretty much does what it says on the tin! Lovely little one bed flat in a great location in Teddington less than half a mile from the station. 

   

http://www.rightmove.co.uk/property-for-sale/property-33467319.html

It doesn't need doing up, just a bit of tidying up here and there. You can get tenants straight in who should be paying around £1300pcm. With a sale price of £320k that gives you a 'not so shabby' gross yield of 4.9%. Don't forget to check out the lease length and the service charge though as these can easily eat into any profits.

As well as being a local letting agent, I source properties for buy to let investors, so, if you don't have the time or the inclination to do the trawling yourself then I can do all of that for you and make sure the figures stack up! :o)

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

Teddington Property Market - should you be buying?

A number of landlords, first time buyers and investors have approached me recently, asking about the Teddington property market. With all these headlines of massive increases in property values in the UK, should we be worried we are about to have a price crash? We are in the early stages but the economy is now actually looking a lot healthier and there are signs we are seeing an actual recovery after several false starts.

I am of the opinion that over the last few years, whilst mortgages have been a little more difficult to obtain than the last decade of the 2000’s, this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis and the banks are more willing to lend which is why sales, prices and first-time buyer numbers have improved so rapidly. It has been like opening a shaken can of fizzy pop! You get the initial fizz of activity, and then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom.

Property values in Teddington have risen, on average, by 14.2 % in the last 12 months. When I look at the London as a whole, prices have risen by 9.2% and nationally by around 8.7%. Compared to the boom years of 1998 to 2003, when property values increased by 23% in 1998, 12% in 1999, 20.6% in 2000, 11.9% in 2001 11.3% in 2002 and 13.4% in 2003 in Teddington, I cannot see why some are concerned about an unsustainable price boom. I believe house prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone. We are seeing continued exceptional property price growth in central London combined with modest gains across other regions and, creating a picture of a broadening market recovery, I expect prices to continue to rise (steadily) in the short term.

Speaking to others in Teddington, the issue isn't house price inflation, but a lack of realistically priced properties coming onto the market for sale; a lack of supply. In the Spring months of 2014, on average 107 properties per month were coming on to the market for sale in Teddington, in the last few months of 2014, only 68 properties per month came on to the market. So should you be buying a property in Teddington?  Now is a good time to buy, provided you accept prices may fall again in a few years. It depends on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it. Teddington first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be that buyers ensure they can take the hit of future interest rate rises and therefore, I ask the first time buyers of Teddington to make sure you'd be happy in your new home, because you could be stuck there in five years' time.

Landlords tend to buy for the long term, so these short term movements don’t tend to affect them as much. The lack of supply in Teddington of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Teddington aren't prepared to pay over the odds for a property to secure it. Maybe, just maybe, the memory of the 2008 price crash has given a dose of realism to the optimistic Teddington property market?

I am a letting agent first and foremost and pride myself on looking after my landlords homes as if they were my own. If I wouldn't personally have a tenant in one of my properties then I wouldn't put them in yours. I also source properties though and so if you are looking for your next buy to let investment and don't have the time, or are unsure of what you should be buying to make the figures stack up then I can help. Simply drop me an email at rebecca@rebeccasmithpropertyservices.co.uk and I will respond the same day.

Now, here's my picture of the day! 

Rebecca Smith

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

Buy to let deal of the day - cracking cashflow in Feltham

This has just come onto the market in the 'nice' part of Feltham and is a great investment. It's a 2 bed flat that'll cost you £200k (if you don't get a discount) and yet you should be able to demand £1150pcm for it which is a gross yield of 6.9%. Wowzers!! As much as we all love Teddington and Hampton. not sure they can compete on this one!

ps - love the fact that they've taken a picture of the nearby Gala Bingo to entice more buyers!!! :o)

    

http://www.rightmove.co.uk/property-for-sale/property-50099921.html

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

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

Back to Stanley Road - a great part of Teddington to invest in. The fact that its on the borders of Fulwell, but still in Teddington, makes it more affordable and therefore attractive to tenants. This is a lovely little one bed flat, on at £234,950 which seems cheap to me. I'd be checking out the lease details and I reckon when you view it it will be very small. The lack of floorplan may be a trick to get people through the door before they realise how small it is. Size not so important for the rental market though and the demand in this area means it will rent for at least £1150pcm every day of the week. That gives you a gross yield of 5.9%.

     

http://www.zoopla.co.uk/for-sale/details/35695042#FVeJZ2LTMKEcvyDJ.97

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

Buy to let deal of the day - lovely little Hampton flat...

This is a great little investment. Not amazing cahflow but not sure if that exists around these parts. You'll never lose on it though and will have tenants queuing up to rent it every day of the week. Its a purpose-built one bed GARDEN maisonette in a prime Hampton location. No works needed so just buy it, rent it out, make some cash every month and watch it go up in value. Simple!

      

It's on at £279,950 so lets say you shave a bit off and get it for £275k. You'll rent it for £1050pcm which gives you a gross yield of 4.6%.

http://www.rightmove.co.uk/property-for-sale/property-47920183.html

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

£5,257,896 – the total rent paid by Teddington tenants a year!!

In the last few months, politicians in Westminster have decided to step into an area which affects many of us - property. Anyone who rented property in the 1970s and 1980s knows the difficulties of tenancy agreements from that era which allowed the tenant the right to stay in the property for life. In some cases, tenancies could be transferred to their children, rents could not be increased and tenants could not be removed. One of the suggestions by the Labour Party is rent controls. With more than 4.4 million people renting 3.4 million properties in England alone, it was clear that this could be a policy that was purely playing with the sentiments of these tenant voters.

Under the current legislation, tenants are already in a position to challenge rent increases that are unreasonable and they have the advantage of giving two months’ notice to the landlord (when the tenancy is a rolling agreement, i.e. periodic tenancy) . But do rents need capping? Well, in Teddington, there are 3,851 people renting properties. The average rent of a Teddington property in 2008 was £2,067 per month. If Teddington landlords had raised the rents in line with inflation, (which sounds very fair to anyone), as inflation has been a total of 19% since 2008, the average rent in Teddington should be today £2,067 + 19% = £2,460. At this moment in time, the average in Teddington is £2,380... And those figures are being repeated all around the UK.

However, restricting rent rises in the future could put more properties back on the market for sale as it would destroy the confidence in the housing market. In turn, this would reduce property prices. With less property available to rent, and a lack of interest from potential investors (due to the poor yields) this policy would end up creating a shortage of affordable housing.


With the not-insignificant increase in renting in Teddington over the last ten years,16.43% of property being rented in 2001 to 22.4% in 2011, it is clear that the changes to the law of tenancy agreement made in the Housing Act 1988 resulted in benefits to both landlords and tenants. The law has made it easier to rent a property and at the same time, the Assured Shorthold Tenancy gives the tenants a right to quiet enjoyment of the property for a period of time. Yes, the total rent paid by Teddington tenants is an awful lot of money, £5,257,896 a year in fact, but as rents are free to move up, but just as important down, why fix what aint broke?

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

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

Nice and simple one this morning - lovely two bed, big flat in Teddington which is a no-brainer of an investment. No work needed for the rental market but if you wanted to sell in a few years you could spend £5k on it to increase the value by a good £20k...

    

It's on at £369,950 which is a decent price for the size and location and even comes with share of freehold - bonus! You'll rent this for £1500pcm which would give you a gross yield of 4.9%.

http://www.rightmove.co.uk/property-for-sale/property-32846199.html

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

Buy to let deal of the day - 6.9% yield in Surbiton.

Today we're going to look at something which can really bring in the cash! I came across this 4 bed flat in Surbiton which is in decent condition and in a high demand location. 

  

Now I wouldn't normally recommend a 4 bed flat as a single let as there's not that much call for it on the open market. If someone wants 4 beds then they'll invariably go for a house. However there is another way and that is to market it as a multi-let to 4 individual people. Surbiton is a great area for young professionals so in order to maximise the appeal for this market I would be throwing a good £10k at this place to fully spec it out and put it right at the top end of the market. 

This is currently being rented out as a whole for £1900pcm but I think the landlord is missing a trick. By renting the rooms individually you will be able to demand between £600-650 per room per month. And don't forget, this helps to lower your exposure to expensive void periods as if someone serves you notice and moves out then you only have one quarter of your investment empty, not the whole thing.

So, lets look at how the figures stack up....Its on the market for £425k so worse case scenario, you get it for the asking price and spend the max of £10k on it. Lets say, for the sake of argument, you get £600pcm for 2 rooms and £650pcm for the other 2 rooms. That puts your gross income at £2,500pcm with an investment of £435k. Your gross yield would then be 6.9%. Anything you can get off the asking price and refurb costs is, of-course, a bonus.

Multi-lets are not for the faint-hearted though so if you're new to the game then I suggest you using a decent agency to manage it for you and to make sure you're fully compliant with all regulations. Someone like me, for example! ;o)

http://www.rightmove.co.uk/property-for-sale/property-49830146.html

Rebecca Smith

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

Rise of the 'Silver Landlord' in Teddington?!

So, this years pension regulation changes have been reported to potentially cause a buy to let boom of 32% among those aged between 45 and 64 who have a pension. 

Research by Direct Line for Business claims that from April, people approaching retirement and pensioners will be able to access as much or as little as they want from their pension pots. The research shows that 43% of people in that category would consider buy to let on the basis that it produces regular income while another 23% are attracted by the perceived security of the investment. Some 17% say they are attracted by the expected capital appreciation while 9% favour it because they would like to invest in something that will allow them to leave an inheritance to their children.

So is this something to consider if you live in Teddington? Well, simply, yes! With tenant demand continuing to outstrip housing supply buy to let is becoming an increasingly attractive option for people. Rents have been, and remain, consistently way above national average in Teddington and with the appeal of high living standards, excellent schools and good transport links to London, the demand to live in the area shows no signs of diminishing. 

If your pension pot can afford to buy or part-buy you, a one bed flat in Teddington for around £350k then you could expect that to generate you in the region of £1100 - £1300pcm depending on location and spec. How many low-risk investments produce that kind of return whilst benefiting from capital appreciation. And of-course you can pass it on to your children in your will so that they benefit long after you're gone! Seems like a no-brainer to me!

If you're nervous though and not sure what to buy or where then please do get in touch with me. This is what I do day in day out and so I'd be more than happy to share my experience and offer you some advice.

Now, here's my picture of the day. Not sure why but made me laugh! :o)

Rebecca Smith

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

New Year buy to let deal of the day - Teddington 5.1% yield!

Happy New Year to all of my blog reading friends! Hope you had a great one? I certainly did although went a bit mad on the mince pies so having to now take drastic January action! :o)

Thought I'd start the New Year with a cracking little investment property in our beloved Teddington. This one is a lovely 2 bed flat, central location, decent standard so no work needed and will rent every day of the week for £1450pcm. Added bonus of private garden and large loft space for storage - always in high demand from tenants...

On the market for £350k but you may be able to squeeze it down to £340k. If you do, that will give you a gross yield of 5.1% - very decent for Teddington! And don't forget average capital appreciation in Teddington last year alone was 11%. This is a classic low risk investment - just check out the ground rent/maintenance fees and also lease length as they could eat into your profits.

  

http://www.rightmove.co.uk/property-for-sale/property-33173184.html

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