21 April 2017

Nice investment in this lovely old building

Look at this nice little one bedroom flat at the back of this historic old building in the very centre of Ludgershall being marketed by ourselves and our Salisbury office.  

These flats are very popular with tenants and always rent well.  Add to this a very long lease and a return of over 6% plus a tenant in situ its well worth considering.



For any advice or help, please feel free to give us a call.

13 April 2017

Preparing your investment for sale

Thinking of selling your buy to let?  This is obviously a little more difficult than selling your own home as you are not in control of how it’s presented.  Here are a few tips that may help:

Where possible, use the agent who let it, sell it.  There is a very good reason for this – the agent will have a relationship with the tenant and this is key.  The last thing you want is for the tenant to give notice the minute they hear the property is going on the market.  Make sure the agent makes the tenant aware that notice will only be given once a suitable offer is received and accepted.

Encourage the tenant to keep it tidy.  This may sound simple but, at the end of the day, the tenant has little interest in getting the property sold.  Therefore advise them that there is every possibility that the property will sell to another investor, in which case they will probably be allowed to stay on.

Ask the agent to go early to every viewing!  This will allow them time to have a quick tidy, if necessary, open curtains and air it a little.

Emphasis the rental value.  If it is a typical buy to let investment and most likely to appeal to investors, make sure it is marketed as such including the rental value.

Periodic tenancy.  If possible, don’t market the property until your tenant is on a periodic tenancy.  Two reasons for this, if they are in a fixed term tenancy it limits your market massively, secondly, if it does sell to a new owner occupier, you can serve your two months notice.
                                                         
Notice.  If the property is sold to an owner occupier, only serve notice once you have agreed a price, solicitors have been instructed and you have received notification that the survey has been booked.  The sales process typically takes anything between 8 to 12 weeks, depending on the chain so this should limit the time the property is empty.

At the end of the day, communication is key when selling a buy to let and that’s mainly the communication between the agent and the tenant.  Keep them on side and it should be a relatively painless process!



6 April 2017

Large or medium sized semi detached - Which makes the best investment?

I was recently asked by a friend of mine if he should buy a fairly standard three bedroom semi detached house in Picket Twenty or a slightly larger version with a garage.
We did some research and found a nice, nearly new three bedroom semi detached house with garage on Turnpike Road which was marketed for £275,000 should achieve a rental value around £1150pcm giving an annual yield of 5%.
A slightly smaller three bedroom semi in the same area was recently sold for £250,000 and would attract a rental value of around £1000pcm giving an annual yield of 4.8%. 
Both properties would be popular with young families, especially with the local school growing in popularity.  However, it does show that, spending more, won’t necessarily earn you a much higher return in the long run, even with a higher monthly rental income.. 
This shows that while a property can achieve a higher rents, it does not necessarily mean higher returns.

If you would like any advice when choosing properties, you may come and see us at our offices.

3 April 2017

How to calculate Stamp Duty Land Tax

As you are no doubt aware the calculation of Stamp Duty payable was changed a couple of years ago by the then Chancellor.  Most people had hoped that a lot of the changes would be reversed but sadly that seems unlikely and the current rules were bought in on 1st April 2016. 
The current rules are:
A property costing up to £125,000 – no SDLT payable
The portion of the purchase price between £125,000 and £250,000 – 2% (up to £2500)
Plus the portion of the purchase price between £250,000 and £925,000 – 5% (up to £33,750)
Plus the portion of the purchase price between £925,000 and £1.5m – 10% (up to £57,500)
Plus the portion of the purchase price between £250,000 and £925,000 – 5% (up to £36,250)
Plus the portion of the purchase price over £1.5m – 12%
So buyers of a property costing eg £375,000 would pay £8,750 (£0+£2,500+£6,250). You can find an SDLT calculator at https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Sadly however, for Landlords the SDLT payable increases by a further 3% for additional properties above their own residence.


30 March 2017

Springfield Close, Andover – Property everywhere but none to rent...

I was recently asked why there are so few properties to rent on Springfield Close, Andover. I did some research and found that, over the last 12 months, only three properties have been available for rent on Springfield Close, a popular housing estate.
We can help you identify property values and other useful property related information to make sure you can get everything you need about your future investments. Here are just a few property facts about Andover…
The average price for a 3 bed house (according to mouseprice.com) is £240,600 and the average income of someone living in Andover is £20,157 per year. Price to earnings ratios are effective measures of the relative affordability of property in a given area (the higher the number – the more expensive it is to buy). In Andover the ratio is 11.94 compared to 12.16 nationally.

For any property advice, please pop in and have a chat.

20 March 2017

Flats in Andover - decent yields of over 5.5%

I was talking to one of my landlords the other week, when the subject of flats came up and whether they would make a good investment. Flats are not always the first choice for investors but they rent very well and generally offer good yields. There is a strong argument that buying a flat these days is not an issue as they are sensibly priced, the error people made in the past was buying them at the start of this century for more than the price of a house.
If you are a landlord with a limited budget, you can still find a decent property to let in Andover. Typically, a two bedroom modern apartment can be bought for around £150,000 in the town centre of Andover in areas such as Heather Drive, Junction Road and similar areas – the average rent for a property here is likely to be around £695 per month.  Just remember though, when considering a flat, do your homework and find out about service charges and the length of the lease as these will all impact your return, especially if you have to renew the lease.

If you would like our opinion on any potential investment, pop into our offices.

17 March 2017

You know how I keep going on about ex council houses.......

Those of you who are regular followers of our blog will know I am always going on about what good investments ex council properties make.  Well, this week I spotted this little gem.  This is on Floral Way where properties don’t come up too often and its close to popular schools so whats not to like.



You should look to achieve at least £825pcm on this so it should give you at least a 5.8% return.  It may need some upgrading but doesn’t look too bad and is definitely worth consideration.