Tuesday 31 March 2015

Want to buy a piece of the regeneration in Battersea SW11? Look no further!

This superb ideal investment property should fetch between £400-£420 per week producing a mouth-watering yield of 8% if purchased for the asking price of £267,500!

This flat is perfect placed for those professionals that would like to be close to a train station with Queenstown Road and Battersea Park Stations both within 0.3 miles away. The split level apartment offers 3 double bedrooms which is almost a pre-requisite for sharers so that’s another major box ticked. It can only be purchased by a cash buyer so is ideal for an investor with liquid asset available and looking for a good long term return. Of course there is the multibillion pound investment programme of nearby Nine Elms into homes as well as the £1 billion connecting Underground line which will naturally increase the value of properties in the area.

As always if you want to talk property call the office on 020 3397 2099 or pop in and see us on Clapham Park Road.

Thursday 26 March 2015

Rental yield of 5.5% - and capital gains are there too as it’s a Georgian Building

It’s rare to have a rental property with such a good yield in a period building. Period properties have always been favoured for capital gains reasons – they are simply easier on the eye and retain good value in the peaks and troughs of the market. I found this one for sale – a 3 double bedroom hall floor flat on Grosvenor Terrace, SE5. A superb buy to let investment! I envisage it would let for £480pw giving a return of 5.5%! This is bound to prove be popular with many investors. The location is on the way up. Situated within close proximity of Walworth Road and Elephant & Castle Tube the location is favourable for zone 1 commuters. Furthermore the development of the Heygate estate and soon the Aylesbury estate will transform the area overnight. Better quality homes and a wide new range of facilities to attract new people to the area. Where there’s an increase in population numbers the property prices will follow suit! Long-term growth is guaranteed for the area, watch this space! This property will let easily to professionals looking to travel in or if the standard of finish isn’t high enough there will be plenty of School of Arts goers, etc.

As always drop me a line if you want to check local demand for a property you’ve got your eye on. Always happy to help.
Kosta Giannakakis
Lettings Manager

Tuesday 24 March 2015

Amazing yield property – 7.8% yield in Brixton SW9

It’s not often that larger properties are on the market with such good return. Historically larger properties have been slow to be snapped up because they were perceived as, well, outside the norm. Most people rented a 1 or 2bed flat. So as a consequence buy to let in the 90s and 00s meant that everyone bought a 2bed flat. The more equal the double bedrooms the more valuable. But currently 2beds represent about 40% of the lettings stock. As a consequence investors are finding yields spiralling downwards.

Larger properties have bucked this trend. With renters renting until their late 20s or even mid 30s the need for larger accommodation has risen over the past 2 decades. The price per bedroom is lower and generally this is what attracts the bigger groups. As they are always out, working or playing, the need for living space, large kitchens and so forth has decreased. Enter the savvy landlord with bigger properties. Higher demand, less voids and the price per bedroom to buy is cheaper – so higher yields. What’s not to like?

We estimate a rental price of £750pw-£800pw, which using the conservative figure would yield 7.8%!

Tenants will be queing up around the block to see this beauty with a roof terrace. Purchase in time for the summer rush. With graduate schemes and new jobseekers entering the London rental market August/September time this property is keenly priced for the savvy investor.

As always do get in touch for a helping hand with your new investment.

Jeroen Hoppe


Monday 23 March 2015

Your Pension and the Clapham Property Market

Pension rules are changing this April. It certainly ruffled some feathers and caused a flurry of enquiries to my inbox with people asking questions about it. This week, I want to look a little deeper into the subject of your pension and the Clapham property market. George Osbourne, in last years’ Budget, announced pension reforms that come into effect this April, which will give people with pensions unprecedented access to their pension pot and the freedom to look for alternatives. In a nutshell, after the 6th of April, anyone aged over 55 will be allowed to withdraw all or part of their pension pot and spend it as they wish. Until now, you were allowed to take out a quarter of it and were forced to buy an annuity policy with the rest.

However, my readers always know that I like to tell it ‘as it is’. There are always two sides to a story, good and bad. Let me tell you the bad news first. There are some hefty tax implications by taking money from your pension pot. As before, as per the old rules, the first 25% can still be withdrawn from the pension pot tax free but, here is the sting in the tail, if you take more than a quarter of your pot (25%), anything above that initial 25% level will be taxed as income. So if you took the whole lot out, the first 25% will be tax free but the remaining 75% will be taxed at your income tax rate of 20%, 40% (or even 45% if you earn over £150,000 a year)

.. and now the good news!

Under the old scheme, if you bought an annuity, when you died your annuity normally died as well. You would have no asset to pass on to your family. Also, the returns from pensions are awful at the moment. The best rates according to Hargreaves and Lansdown (big wigs in the City) state if you were 55 years old, the best rate you would get on your annuity pension would be 4.4% fixed for life (so it would never go up) or 2.2% but the payment would go up with inflation. The sort of rates (also known as yields in the property investing game) being achieved in Clapham are in the order of 2% to 4.3%. 

The other aspect of property investment is how the fact property values have risen consistently over the last 50 years. According to the Office of National Statistics, the life expectancy of a 65 year old male in Clapham is 18 years and 2 months. If we roll the clock back 18 years 2 months to January 1997, property values in Clapham have risen by 474.05% to today .. you wouldn’t have had that with your pension! But this is the biggest win, even by taking a hit in income tax now, by buying a property, you buy an asset that you can pass on to your family when you die.... (or the cats home if they aren’t nice to you!).

So where next? It totally depends which strategy you are going to look at, one strategy is to look to achieve relatively small rental returns (ie low yields) in an up market area which has decent capital growth or, alternatively, another strategy is to buy properties in not so good areas known to produce a high returns (ie high yields) but low capital growth (ie how much the value of the property goes up).

So if you want to hear more drop me a line and make investing a worthwhile task.

Jeroen Hoppe

Good investment in Brixton SW2 with 6.2% yield and great long-term capital appreciation prospects

Three bedroom leasehold flat in Tulse Hill. You may think “nah, too far away from the tube;” but think again! A property further from the tube represents good value as a purchase and potentially offers better uplift in value due to people looking slightly further out (affordability reasons). I predict that this property will rise in value more than one next to a tube, as a property like this (three relatively equal sized bedrooms) is in constant demand on the rental market making. It would be a great long-term investment because although it’s not currently in a sought after location, anything within 2 or 3 bus stops from the tube or train from a currently “desirable” area (on top of a tube) will soon become the same.

This particular property is on the market for £320,000 and with a predicted rental income of £380pw it represents a yield of 6.2%. A great yield and a great chance of capital gain over the long term.

For full property details click here:

Lambeth has seen nearly 20% average price growth last year in the North of the borough. When prices for typical first time buyer flats get up to around 12 or 13 times average annual income many people can no longer afford them so start to look further afield.  We recently sold 2 flats in Medora Road, slightly further out, to 2 such buyers.

We constantly have a steady flow of professional tenants who’s budget does not allow for them to be in their desired location (next to a tube station) but they still need to be within a commutable distance for work so have to take the next best thing,  The bus links to Brixton from here are excellent, and the nearby Sainsbury’s, pubs, cafes, restaurants and close proximity of Brockwell park mean there’s plenty close by to keep you busy. Commuting is easy too with Tulse Hill station whisking you to Farringdon in 15 minutes and round to King’s Cross in another 5; London Bridge is even closer.

A prime example of neighbouring areas having a positive effect on others is Stoke Newington as it has become exceptionally popular in recent times due to the likes of Islington and Shoreditch, all without the benefit of tube links.  Other areas especially in south London are set to follow suit over the coming years.

In summary a good long-term buy. The only way is up, and if it were my money I’d take a punt on something a bit further away. You may find better gains than something closer to a station.

If you are looking for any advice regarding lettings or acquisitions do get in touch on the phone 020 3397 2099 or pop in to our Clapham Office for an informal chat.

Elishah Anderson
Assistant Lettings Manager

Friday 20 March 2015

I want to look further from the station to find more space, but how will this affect the value of my property if the market changes?

This was precisely the question I was asked whilst having a catching up with an old friend earlier this week, and an excellent question which is well worth addressing. So let’s first state the obvious. Being close to transport is good. Typically, buyers like properties that are close to transport and properties that are located within a 7-8 minute walk from a station also tend to hold their value. Hence investors and developers tend to be a lot more cautious when it comes to putting their money into properties further out than this.

However, I told my friend that a big factor which has contributed to the rapidly increasing prices of the last few years here in London is the shortage of supply. And what do people do when there is not much on the market? Look further out. When in the position of buying and faced with the option of a cramped property relatively close to a transport hub, or a much larger place that is further away from a station, buyers compromise. Suddenly, that 15 minute trek seems much more do-able – especially in a market like London where buyers are typically stretching themselves to get on the property ladder in the first place – and have to compromise on something unless their budget is unlimited!

And what happens to prices as a result? We know that centrally located properties tend to increase in price steadily. However, what we have seen in the last few years is that when supply is restricted the prices of properties further out actually increase more rapidly in percentage terms, as they play catch up with with the more central ones. Properties further out have gone up at phenomenal rates over the last three years. Naturally, should the market be flooded with properties the price increases could be liable to plateau as buyers can afford to be more picky in terms of location.

Ultimately, investing in property in a market as buoyant as London is generally a wise long term decision wherever you buy. As always there is no right answer or wrong answer, it depends on circumstance – but the big factor when considering whether to purchase a property closer or further from transport – when looking from a price perspective – really comes down to how long you are planning to keep the property for. I advised my friend that were he only planning to keep the property for just a couple of years before upsizing or moving elsewhere, it would probably be better to purchase close to the tube station in the location he was looking at, as this would leave him less vulnerable to any short term volatility in the market. If he was looking to keep the property for longer, say 5-10 years as a long term investment, if he looks further afield not only is he likely to get considerably more for his money, it is highly likely to be a shrewd decision financially.

As always if you are eyeing up an investment and would like a second opinion do get in touch on 020 3397 2099 or drop me a line.

Richard Thompson
Sales Manager

Tuesday 17 March 2015

Close to Clapham South - another high yielding investment opportunity - Clapham SW4

Love them or hate them, from an investment point of view they are proving very popular with our clients.

More and more renters are priced out of period conversions and with the growing trend of flat-sharing longer and longer (it is taking longer of course for people to settle down with Mr/Mrs right in their own place) the demand for bigger units is only going to rise.

We estimate a rental return of £450pw in average condition, but with no internal photos on show this one may need some TLC. Nonetheless nearly 6.2% @ asking price, so I trust this flat will be popular.

This estate is close to Clapham South tube so offers excellent links to the underground (zone 2/3 border), Balham High Road and Clapham High Street for local bars and restaurants as well as Clapham Common itself for recreational use. Ideal for renters in their 20s.

Drop me a line if you are looking at an investment and you need another pair of eyes or by all means call the office on 020 3397 2099.

Jeroen Hoppe

Monday 16 March 2015

Excellent high yielding BTL investment Albion Avenue SW8

I’ll kick off this week with a lovely flat just around the corner from Clapham North Tube. Having let one of the first flats in my career here some 10 years ago this estate retains some nostalgic value for me. Rents have risen substantially over the years (from £240pw 10 years ago) and the buyer of this lovely 3 bedroom flat can expect a rental of around £450pw.


Another excellent “ready-made” investment I dare say it’s one for the BTL shortlist. Three bedders are always in good demand and with Clapham High Street nearby sharers will love the local amenities. 5.9% gross return I make that at asking price. Do your sums, do your viewings and make your offer!

Remember I'm always on hand to numbercrunch any potential investment you've got your eye on so please email me or give me a ring in the office on 020 3397 2099.

Jeroen Hoppe

Friday 13 March 2015

3bed now 4bed - but still excellent BTL investment in Brixton/Tulse Hill SW2 for those shy of getting their hands dirty

Sometimes it pays dividends to purchase something run down and throw the builders and some pound notes at a property in order to come up with something lettable. In this case however I can't fault the refurbishment done by the current owner. Judging by the floor plan's layout and square footage this property was probably a 3 bedroom flat in it's former life, now revamped as a 4 double bedroom apartment boasting a modern open-plan kitchen and wooden flooring throughout. It looks beautiful.

Click here to see the full property details

For an easy investment this is certainly worth a look. Points to note are that it is further from a tube and closer to rail transport. This may put some tenants off, so the choice of tenant will be more limited and hence it may prove slightly more difficult to let. However in a busy market like London voids are minimal if any, and the purchase price is very keen considering the immaculate condition. We estimate a rental income of between £450-£500pw, which translates to a gross yield of 6.7%-7.4% yield if you offer the vendor the full asking price. 

An easy investment and we'd have tenants queueing up for viewings for sure.

If you are interested in hearing more about buy to let investments please do drop me a line or call the office on 020 3397 2099.

Jeroen Hoppe

Thursday 12 March 2015

Excellent 3 bedroom maisonette in Brixton SW9 with over 6% yiel

This beautifully well-kept 3 bed flat in a low rise block situated in the up and coming area of Loughborough junction is deliciously priced at £329,950. This flat can rent up to £400 per week which represents a yield of 6.3% which ticks all the buy to let boxes. It is also only 0.2 miles to Loughborough Junction Station and 0.7 miles away from Brixton Station providing easy access to the city and centre of town. It comes with a private garden plot giving it a unique selling point and could make the difference for potential tenants too.

Nearby Brixton has a flurry of excitement with the likes of the soulful Brixton Village, the dazzling Ritzy Cinema and the Brixton academy as well as the many new lively places to eat.

Growth in Loughborough Junction will continue to rise just as its neighbour Brixton has done over the past 5 years, so capital growth is assured also.

Click here for full details and please do get in touch if you are the lucky purchaser as three bedroom flats are always in good demand!

http://www.rightmove.co.uk/property-for-sale/property-50972900.html less…

Check out this property for sale on Rightmove! rightmove.co.uk

3 bedroom maisonette for sale in Rupert Gardens London SW9 £329,950. Marketed by Acorn, Kennington

Wednesday 11 March 2015

Property on the Oaklands Estate outperforms Abbeville Road SW4

What would you choose? A beautiful period property situated in a desirable location, or an ex-local authority in a block? A good question for those new to investment and seasoned investors alike. Most investors prefer one or the other, for different reasons. One may prefer ex-local authority for its better rental yield, and others capital gains from period property. Historically there has always been a trade-off. Is that still true today?

Having taken a sample of data from the Oaklands Estate and Abbeville road for comparison:
Flat 4 Selby House Oaklands Estate, SW4 8AN was sold in 2000 for 118,000 and then again in 2007 for £279,950. This represents an annual capital growth of 13.18%. (It had been sold prior to 2000 but this figure is likely to include the right to buy discount, so was ignored). Our comparison property: 16a Abbeville Road SW4 9NJ was sold in 2000 for 285000 and then resold in 2007 for 555,000, representing a capital gain of 9.99% annually. Both properties are 3 bedroom leasehold flats.

It is very unusual to find that a purpose-built property that outperforms a period property over the same time period. On the face of it therefore the ex-local authority property seems to be a winner. But the real win here isn't just in the capital appreciation, there’s more.

You see with a lower purchase price from the outset and similar rental yields the real reason that an ex-local authority flat is a sound investment is simply because you can buy more of them. You can buy 2.5 flats in Selby House with the deposit you were going to put down on Abbeville road. So not only are you winning by capital appreciation, you will be doing it at a rate 2.5x greater than the investor who chooses a period property.

In the past period properties have outperformed flats in purpose-built blocks – but as the above illustrates this trend is coming to an end. With more first time buyers struggling to get on the housing ladder the demand for (relatively) cheaper homes has risen substantially. This increase in demand has led to a dramatic valuation increase for ex-local authority properties. Do bear in mind that the increase in valuation will only be capitalised upon re-mortgage or resale, and point to note is that period properties did hold their value better in the recession, but if you are not looking to exit the market in the next 10-15 years they are certainly a safe bet today.

So next time you are looking at a period property for investment, think again. One period property for two ex-local authority properties. Double your winnings? I do believe so.

If you are looking at a buy-to-let investment and need some assistance crunching the numbers do get in touch. I’m always happy to help and assist you source a viable investment in order for you to get the best out of the property market.

Jeroen Hoppe
Company Director

Monday 9 March 2015

Buy-To-Let Property Of The Week

Look no further than this property if you are looking for a buy-to-let investment that looks decidedly cheap. With a approximate rental income of £1350pcm, this flat would provide any investor with an excellent yield of nearly 6.5%.

Also to be taken into consideration is the fact that several 2 bedroom properties have recently sold in this block for over £350k. As a general rule of thumb, you can allow a £50k - £75k difference between a one bedroom flat and a 2 bedroom in this part of London. It is often said that money is made by the professionals when a property is bought, not when sold – and in this instance whoever buys this flat has a very good chance of locking themselves into a tidy profit, and a property with every chance of capital appreciation.

Richard T
Sales Manager

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