STOP PRESS – 8.5% yield in Clapham – BUY NOW

If you aren't doing anything that will yield you 8.5% stop what you are doing and go and buy this flat.

Spotted on for sale this morning: A 3 bedroom maisonette with roof terrace for £275,000. They either got the price wrong or it’s earmarked for a sale TODAY!

Oaklands Place is just off St Alphonsus Road SW4, and there are probably only a bunch of flats above shops that are actually closer to Clapham Common Tube.

http://www.rightmove.co.uk/property-for-sale/property-49806079.html

Normally I would say it may be tricky to let as 2 out of the three bedrooms are a bit on the smaller side, but location prevails. It will let in a day surely. I put a conservative estimate of £450pw on it, but I think given the location a bidding war isn’t out of the question, especially with the Summer Rush taking place by the time you complete on this beauty.

It’s in immaculate condition and features outside space.

WHAT ARE YOU WAITING FOR!?

Call me the moment you’ve placed your bid as I’m keen to hear what you’ve secured it for. I’ll be keeping my eye on this one!

Drop me a line for further property talk on Jeroen@xandermatthew.com or call 020 3397 2099.

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.

Check out the full details here

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
Director
XanderMatthew

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

XanderMatthew

6.8% rental yield in Clapham South

This four bedroom flat in Poynders Garden SW4 has just come onto the market with Foxtons, at an asking price of £399,950.

http://www.rightmove.co.uk/property-for-sale/property-49501853.html

Finished to a reasonable standard, with four good size double bedrooms, a large reception room, and within easy walking distance of Clapham South (Northern Line) and Balham (London Victoria), the property would make an ideal home for professional sharers. 

After studying the floorplan and noting the lack of a bathroom photograph, it seems unlikely that it includes a shower - something most sharers would consider essential. A bathroom refit should be considered if you want to make the property as attractive as possible to prospective tenants. After making minor changes a weekly rent of £525 would be achievable, offering a 6.8% yield at asking price. The recent stamp duty reform also represents a saving of £2,000 when compared to the old 'slab' system.

If you've spotted a buy-to-let opportunity or need impartial advice regarding your current property portfolio, feel free to give me a call on 020 3397 2099 or email me at jeroen@xandermatthew.com.