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/