Wimbledon Buy To let –Freehold House or Leasehold Flat?

Wimbledon Buy To let –Freehold House or Leasehold Flat?  I to wish to answer a question emailed into me from a potential Wimbledon landlord last week. Nice chap, lives in Parkside, and it turns out, after having a coffee with him, he works in IT, has a spare bit of cash (now the kids have flown the nest) and wanted to buy his first buy to let property. His main question was … Do I buy a freehold house or a leasehold flat in Wimbledon? Most people will say freehold every time, because you own the land. However, it’s not as simple as that (it never would be would it!). The definitive answer though is to research what Wimbledon tenants want in the area of Wimbledon they want! The tenant is ultimately your customer, and, if they don’t want to rent what you decide is best to buy, then you are not going to have a successful BTL investment. So starting with the tenant in mind and working backwards from there, you won’t go far wrong. In a nutshell, find the demand before you think about creating the supply. Leasehold flats and apartments in Wimbledon are excellent in some respects as they offer the landlord certain advantages, including the fact a flat can be initially cheaper to buy. Yields can be quite good, offering better cash flow. The building will already be insured and yes there is a service charge, but it’s still for a service at the end of […]

Colliers Wood Buy to let Deal of the day with potential for 5.4% return

Tuesday 19th April 2016: Buy to Let Deal of the Day Today I have picked a 1 bedroom ground floor maisonette which is on the market with Eddison White estate agents. The property is located in Colliers Wood, close to Sainsbury’s and the Tandem centre and is on the market for £264, 950. It can be placed on the rental market for £1200 pcm, netting a potential 5.4% yield for an investor. The property also has the potential to be extended STPP. Below is link to the property: http://www.rightmove.co.uk/property-for-sale/property-38131515.html    

SW19 Buy to let Deal of the day with a potential 4.8% return

  Hi Everyone, Today I have picked a 2 bedroom ground floor maisonette with garden just added to the market with Eddison White Estate Agents. The property is located in Runnymede, Colliers Wood, close to Sainsbury’s. It is currently being marketed at £335 000 and has the potential to be rented out for £1350 pcm netting a return of 4.8% as well as the potential for decent capital growth over a period of time. Click on the below link to view today’s deal. http://www.rightmove.co.uk/property-for-sale/property-40989618.html  

11.6% rise in Wimbledon Property Values adds weight to the Areas’s Housing Crisis

11.6% rise in Wimbledon Property Values adds weight to the Areas’s Housing Crisis   Wimbledon’s continuing housing shortage is putting the areas’s (and the Country’s) repute as a nation of homeowners ‘under threat’, as the number of houses being built continues to be woefully inadequate in meeting the ever demanding needs of the growing population in the suburb.   In fact, I was talking to my Uncle the other day at a family get together; the subject of the Wimbledon Property market came up in the conversation (as I am sure it does at many family parties in Wimbledon) after the weather and politics.  He mentioned that it used to be that if you went out to work and did the right thing, you would expect that relatively quickly over the course of your career you would be buying a house, you would go on holiday every year, you would save for a pension.   But now things seem to have changed?   Back in the Autumn, George Osborne, used the Autumn Statement to double the housing budget to £2bn a year from April 2018 in an attempt to increase supply and deliver 100,000 new homes each year until 2020.  The Chancellor also introduced a series of initiatives to help get first time buyers on the housing ladder, including the contentious Help to Buy Scheme and extending Right to Buy from not just Council tenants, but to Housing Association tenants as well.   Now that does all sound rather good, but the […]

Private Renting in Wimbledon increases by 1,195.79% in 20 years

Private Renting in Wimbledon increases by 1,195.79% in 20 years You find me in a reflective mood today as I want to talk about the future of investing in property in Wimbledon. The truth is that we have got fat and lethargic, with many people having mistaken the ever rising Wimbledon (and in fact the whole of the UK) property market since the 1960’s as the eternal gift that kept giving as property prices constantly rose and doubled every five to seven years.   The days of making money from property as easy as falling off a log, like taking candy from a baby are sadly over my Wimbledon Property Blog reading friends   Whilst George Osborne has decided now is the time to milk the ‘Golden Cow’ of UK’s private landlords, with changes in taxation for buy to let property, many pundits are predicting the end of buy to let as we know it. However, it is still possible to make a reasonable, profitable and safe return on property with these changes. You see, I have always seen investing in the Wimbledon buy to let market (as I would anywhere in the UK), as I might see mother nature, creating some truly wonderful stunning warm weather but at the same time, she will bite, creating catastrophic situations such as snowstorms and hurricanes.  You need to study the market, take advice and opinions from many people and then decide what the proverbial property weather will be … remember, tenants will […]

Has Osborne killed buy to let in Wimbledon?

    Has Osborne killed buy to let in Wimbledon? Well George Osborne, in his Autumn statement last week, caused Wimbledon landlords to ask whether buy to let is a viable investment option, when he announced that landlords, when buying another buy to let property from April 2016 will have to pay an additional 3% stamp duty on top of the standard rate. So for example, it means that the stamp duty bill for a cheap and cheerful £285,000 buy to let home will rise from the current £4,250 to £12,800 from April next year. Some say property in Wimbledon will be worth less because potential landlords will not be willing to pay as much for them, and if house builders or existing homeowners don’t feel they are going to get as much for them , then there is less motivation to build / sell them?… and the person we can blame for this is George himself. Back in 2012, he choose to utilise the British housing market to kick start the UK economy, with subsidies, Funding for Lending and Help to Buy. However, whilst that helped the Tory’s get back into power in 2015, some say this impressive growth in the UK property market has been at the expense of pricing out youngsters wanting to buy their first home. Others say this is the straw that breaks the camel’s back as over the next four years Landlords will slowly lose the ability to offset all their mortgage interest against […]

Wimbledon vs Kingston – Clash of the Property Market Titans

  Wimbledon vs Kingston  – Clash of the Property Market Titans Many landlords have been asking me my thoughts on the Wimbledon property market recently, and in particular, what is happening to property values. My calculations show property values in Wimbledon quite interestingly grew in the month of September by 1.2%.  When one looks at the annual growth, Wimbledon values are 5.4% higher (when comparing Sept 14 to Sept 15).  On the other hand, there are signs that the fundamental growth of property values in Wimbledon has now peaked, despite those average property values being below levels recorded in 2007 (just before the 2008 crash). Whilst the Wimbledon headline rate appears to be good, this impressive rise of Wimbledon property values masks the underlying truth in what is really happening to local property values in the suburb.  Throughout 2015, property values have been yo-yo like on a month by month basis, being quite volatile in nature.  For example, September 2015 2% rise August 2015 6% rise July 2015 1% drop June 2015 8% rise May 2015 1% rise April 2015 3% rise March 2015 6% rise This is in part due to seasonal factors, as well as mortgage approvals increasing over June and July and then falling by over 15% in August, according to the Council of Mortgage Lenders (CML). The outlook for the Wimbledon property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage […]

Wimbledon tenants feel the squeeze as rents continue to rise!

Wimbledon tenants feel the squeeze as rents continue to rise As my regular readers know, my passion is talking about Wimbledon property. As a property agent I like to comment on the Wimbledon property market, which I hope will be of interest to both homeowners and buy to let landlords alike. However, this week, I want to highlight the plight of the tenants of Wimbledon as more and more of their wages are being taken up by ever increasing rents. The cost of renting a home in Wimbledon has broken through the £1700 a month barrier as the average rent for a property in the suburb, now stands at £1767 per month, a rise of 1.4% last month, leaving rents for new lets 8.2% higher than they were 12 months ago. House price inflation has certainly eased in Wimbledon from the heady days of 2014, but still with retail price inflation (for goods and services) reducing to 0% any increase in property values, no matter how small, means in real terms property is still getting more expensive. Meanwhile, many tenants have given up saving for a mortgage deposit as rents continue to take more and more of their wage packets leaving nothing to save for a deposit. That means, more and more tenants are deciding to rent for the long term and therefore the desire for decent high quality rental properties continues to exceed the available rental stock. I would go as far as to suggest that rents are an […]

Dundonald catchment area properties outperform Wimbledon average by 43.56%

Dundonald catchment area properties outperform Wimbledon average by 43.56% I was having a chat with a Wimbledon property investor the other day, when he asked if schools, especially primary schools, affected the local property market in terms of demand from buyers and tenants to a property. Anecdotally, I have always known this to be true, a good school creates good demand and good demand does affect house prices. So, I asked my colleagues on the front line, who take the phone calls from people putting themselves on our mailing list and they confirmed that most people cite location as their number one factor. After looking through our mailing list, it confirms there is a close correlation between the high demand areas of Wimbledon and the close proximity to a good primary school. Talking to my team in a recent morning meeting, they agreed many people would look to increase their budget quite significantly, whilst others would consider downgrading their property requirements to be close to a good primary school. Those of you who regularly read my articles will know I like a challenge, so I decided to look at the science behind these assumptions. According to the SchoolGuide website, Dundonald Primary School is one of the best primary schools in Wimbledon. Its figures are certainly impressive. Their last Ofsted Report classified it as Outstanding, 93% of 11-year pupils achieving Level 4 or above in maths, reading and writing whilst 56% of them achieved level 5. Finally, the schools’ KS2 rating […]

The ‘Liquorice Allsorts’ Wimbledon Property market

The ‘Liquorice Allsorts’ Wimbledon Property market Despite the UK economy heading in the right direction with record low mortgage rates and unemployment  figures dropping,  the rate of property prices rising in Wimbledon have tempered since the start of the year. This slow but sure downward trend in the rate of growth has been in evidence since mid-2014.  Property value increases continue to outpace the growth in salaries, however the gap is closing, helped by a lift in salaries over the last 6 months.  Property values in the London region as a whole are 9.1% higher than a year ago.  Compare this to the neighbouring regions of the East at 8.8% higher and South East at 9.1%, the majority of the country continue to see annual house price gains – the exception being Wales which recorded a slight  decline of -0.6%. Even with the tempering in house price inflation, it does not necessarily change my outlook that property prices are likely to be firmer over the second half of 2015 amid heightening activity in the Wimbledon property market.  As stated in a previous article, there is a current shortage of properties on the market, restricting supply, which in turn will provide stability and support to Wimbledon property prices. Therefore, my overall opinion is that Wimbledon property prices will rise by 7% over 2015 and roughly the same in 2016. Property investment is a long term business.  Buying the right sort of property is vital. I have recently been speaking with a […]