76 Days to Sell a Property in Clapham

Whether you are a Clapham landlord looking to liquidate your buy to let investment or a homeowner looking to sell your home, finding a buyer and selling your property can take an annoyingly long time. It is a step-by-step process that can take months and months. In fact, one of the worst parts of the house selling process is the not knowing how long you might be stuck at each step. At the moment, looking at every estate agent in Clapham, independent research shows it is taking on average 76 days from the property coming on the market for it to be sold subject to contract.

But trust me ... that is just the start of a long journey on the house selling/buying process. The journey is a long one and therefore, in this article, I want to take you through the standard itinerary for each step of the house selling procedure in Clapham.

Step 1 – Find a Buyer

You need to instruct an estate agent (of course we can help you with that) who will talk through a marketing strategy and pricing strategy to enable you to find a buyer that fits your circumstances. 76 days might be the average in Clapham, yet as I have said many times, the Clapham property market is like a fly’s eye, split up into lots of little micro markets.

Looking at that independent research, (which only focused on Clapham), it was interesting to see how the different price bands (i.e. different micro markets) are currently performing, when it comes down to the average number of days it takes to find a buyer for a property in Clapham.

Interestingly, I thought I would see which price band had the highest proportion of properties sold (stc)... again – fascinating!

So, now you have a buyer ... what next?

There are a variety of distinctive issues at play when selling your property in Clapham, together with the involvement of a wide and varied range of professionals who get involved in that process. That means there is are enormous differences in how long it takes from one property to another. Moving forward to the next steps, these are the average lengths of time it takes for each step to give you some idea of what to expect.

Step 2 - Sort Solicitors (and Mortgage)

Again, something we can point you in the right direction to, but it will take a good few weeks for your buyer to apply and sort their mortgage and for your solicitors to prepare the legal paper work to send to the buyer.

Step 3 – Legal Work and Survey

Once you buyer’s solicitor receives the paperwork from your solicitor, then your buyer’s solicitor applies for local searches from the local authority (to ensure no motorways etc., are going to be built in the back garden!). These Searches can take a number of weeks to be returned to the buyer solicitors from the council, from which questions will be raised by the buyer’s solicitor to your solicitor (trust me – you don’t see a tenth of the work that goes on behind closed doors to get the sale through to completion). Meanwhile, the surveyor will check the property to ensure it is worth the money and structurally sound. Overall, this step can take between 3 and 6 weeks (sometimes more!).

Step 4 – Exchange of Contracts

Assuming all the mortgage, survey and legal work comes back ok, both the buyer and solicitor sign contracts, the solicitors then perform “Exchange of Contracts”. When contracts are exchanged, this is the first time both buyer and seller are tied in. Before then, they can walk away ... and you are probably 4 or 5 months down the line from having put up the for sale board – this isn’t a quick process! BUT hold on ... we aren’t there yet!

Step 5 – Completion

Between a week and up to six weeks after exchange of contracts, the buyer solicitor sends the purchase money to the seller’s solicitor, and once that arrives, the keys will be given to the buyer … phew!

To conclude, all in all, you are looking at a good four, five even six months from putting the for-sale board up to moving out.

If you are thinking of selling your Clapham home or if you are a Clapham landlord, hoping to sell your buy to let property (with tenants in), either way, if you want a chat to ensure you get a decent price with minimal fuss ... drop me a message or pick up the phone.

Do let me know if you are looking to invest and you could use a hand. if you are a ready and able investor sign up to my list that will bring packaged deals to your inbox! If you are looking for no-obligation advice then drop me a line and let's start the conversation.

Clapham’s ‘Millennials’ set to inherit £200,920 each in property!

That got your attention ... didn’t it!

But before we start, what is Generation X, let alone Generation Z, Millennials, Baby Boomers ... these are phrases banded around about the different life stages (or subcomponents) of our society. But when terminologies like this are used as often and habitually as these phrases (i.e. Gen X this, Millennial that etc.), it appears particularly vital we have some practical idea of what these terms actually mean. The fact is that everyone uses these phrases, but often, like myself, they are not exactly sure where the lines are drawn ...until now…

So, for clarity …

Generation Z: Born after 1996
Millennials: Born 1977 to 1995
Generation X: Born 1965 to 1976
Baby Boomers: Born 1946 to 1964
Silent Generation: Born 1945 and before

My research shows there are 1,152 households in Clapham (SW4) owned by Clapham Baby Boomers (born 1946 to 1964) and Clapham’s Silent Generation (born 1945 and before). It also shows there are 11,587 Generation X’s of Clapham (Clapham people born between 1965 to 1976). Looking at demographics, homeownership statistics and current life expectancy, around two-thirds of those Clapham 11,587 Generation X’s have parents and grandparents who own those 1,152 Clapham properties.

… and they will profit from one of the biggest inheritance explosions of any post-war generation to the tune of £994m of Clapham property or £128,652 each but they will have to wait until their early 60’s to get it!

However, it’s the Millennials that are in line for an even bigger inheritance windfall.

There are 12,153 Millennials in Clapham and my research shows around two thirds of them are set to inherit the 1,887 Clapham Generation X’s properties. Those Generation X’s Clapham homes are worth £1.629bn meaning, on average, each Millennial will inherit £200,920; but not until at least 2040 to 2060!

While the Clapham Millennials have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news for those Clapham Millennials, including some from poorer upbringings who in the past would have been unlikely to receive gifts and legacies.

However, inheritance is not the magic weapon that will get the Millennials on to the Clapham housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home…but before all you Clapham Millennials start running up debts, over 50% of females and around 35% of men are going to have to pay for nursing home care. Interestingly, I read recently that a quarter of people who have to pay for their care, run out of money.

So, if you are a Clapham Millennial there potentially will be nothing left for you. Of course, most parents want to give their children an inheritance, the consideration that what you have worked genuinely hard for over your working life won’t go to your children to help them through their lives is a really awful one … maybe that is why I am seeing a lot of Clapham grandparents doing something meaningful, and helping their grandchildren, the Millennials, with the deposit for their first house.

One solution to the housing crisis in Clapham (and the UK as a whole) is if grandparents, where they are able to, help financially with the deposit for a house. Buying is cheaper than renting – we have proved it many times in these articles … so, it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit for these Millennials.

Maybe families should be distributing a part of the family wealth now (in the form of helping with house deposits) as opposed to waiting to the end… it will make so much more of a difference to everyone in the long run.

Just a thought?

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Clapham Apartments are only 18.7% more expensive in REAL terms than 10 years ago

My research shows that certain types of Clapham property are a little more affordable today than what the newspapers might make you think.

Roll the clock back to 2007 just before the credit crunch hit which saw Clapham property values plummet like a lead balloon and the Clapham property market had reached a peak with the prices for Clapham property hitting the highest level they had ever reached. Between 2008 and 2010, Clapham property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks, my research indicates that Clapham property, especially flats/apartments, are now more affordable than they were before the 2008 credit crunch.

Back in 2007, the average value of a Clapham flat/apartment stood at £387,385 and today, it stands at £560,530, a rise of £173,145 or 44.7%.

However, between 2007 and today, we have experienced inflation (as measured by the Government’s Consumer Price Index) of 25.97% meaning that in real spending power terms Clapham apartments are more affordable than you might initially think … because if you take off the inflation from that rise, apartments are only 18.7% more expensive than in 2007. If the average Clapham apartment (valued at £387,385 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £487,989 .. meaning in real terms, property values haven’t gone up as much as you believe.

The point I’m trying to get across is that Clapham property is more affordable than many people think. Clapham first time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

It really comes down to a choice and if Clapham first-time buyers can get over the hurdle of saving the 5% deposit for the mortgage on the property – they will be on to a winner, especially with these ultralow mortgage interest rates, a mortgage can be between 10% and 30% cheaper per month than the rental payments on the same house.

So why aren’t Clapham 20 somethings buying their own home?

Back in the 1960’s and 1970’s, renting was considered the poor man’s choice in Clapham (and the rest of the Country) a huge stigma was attached to renting. However, over the last 10 years as a country, we have done a complete U-turn in our attitude towards renting - meaning that many people find renting a better option and a lifestyle choice.

Saving the 5% deposit means going without many luxuries in life (such as holidays, every satellite movie and sports channel, socialising or the latest mobile phone – even if only in the short term) therefore instead of saving every last pound to put towards a mortgage deposit Clapham 20 somethings choose to rent.

There is no denying the simple fact that over the next 10 to 15 years, the people who choose to rent instead of buy in Clapham will continue to rise.

Therefore, everyone in Clapham has a responsibility to ensure that an adequate number of quality Clapham rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of Clapham tenants on the finish and specification of their Clapham rental property.

I have perceived that in the past, what a tenant wanted from their Clapham rental property was moderately unassuming because renting a property was only a short-term choice to fill the gap before jumping on the property ladder. Before the millennium, wood chip wall paper and twenty-year-old kitchen and bathroom suites were considered the norm.

However, Clapham tenants’ expectations are becoming more discerning as each year goes by. I have also noticed the length of time a tenant remains in their Clapham property is becoming longer (and this was backed up recently by stats from a Government Report), although I have noticed a tendency for many Clapham landlords not to keep the rental payments at the going market rates - maybe a topic for a future article for my blog?

The bottom line is this … Clapham landlords will need to be more conscious of tenants needs and wants and consider their financial planning for future enhancements to their Clapham rental properties over the next five, ten and twenty years - e.g. decorating, kitchen and bathroom suites etc etc ..

The present-day and future situation of the Clapham private rental property market is important, and I frequently liaise with Clapham buy-to-let investors looking to spread their Clapham rental-portfolios. I also enjoy meeting and working alongside Clapham first time landlords, to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield and ensuring the property is returned back to you in the future in the best possible condition.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

12.54% of Clapham and Lambeth is Concreted over ... Building Plot Dilemma or Not?

Well the fallout from the recent Budget is still continuing. I was chatting to a couple of movers and shakers from the Clapham area the other day, when one said, “There isn’t enough land to build all these 300,000 houses Philip Hammond wants to build each year”.

...and if you read the Daily Mail, you would be forgiven for thinking the Country was at bursting point ... or is it?

It was 60 years ago the first satellite was launched (Sputnik). All the Superpowers have used them to take high definition pictures of each other for decades, but now satellites and their high-powered cameras are being used for more peaceful purposes. The European Environment Agency (EEA) have been taking high definition pictures of the UK from outer-space to give us a focused picture of what every corner of the Country really looks like … and the findings will come as a surprise.

As my blog readers know, I always like to ask the important questions relating to the Clapham property market. If you are a Clapham landlord or Clapham homeowner, this knowledge will enable you to make a more considered opinion on your direction and future in the Clapham property market. Like every aspect of all economic life, it’s all about supply and demand, because over the last twenty or so years, there has been an imbalance in the British (and Clapham) housing market, with demand outstripping supply, meaning the average value of a property in Lambeth has risen by 673.89%, taking an average value from £67,800 in 1995 to £524,700 today.

Using the information from the EEA and data crunched by Sheffield University with their Corine-Land Cover project, I posed them a few questions about the local area, interesting questions I would like to share with you …

1. What proportion of the whole of Lambeth is built on?

95.08%. Now I doubt that came as much of a surprise! In the study, land classified as ‘urban fabric’ defined has land which has between 50% and 100% of the land surface is built on, (meaning up to a half might be gardens or small parks, but the majority is built on).

2. How much land is intensively built on locally?

Of that amount mentioned above, how much of it is high-density urban fabric? (i.e. where 80% to 100% is built on – still leaving 20% for gardens) 12.54% - now maybe that surprised you!

3. So how is the land used locally?

Industry - 0.29%
Sports Facilities - 4.63%

Clapham and the surrounding areas might be greener than you think! In fact, I read that property covers less of the UK than the land revealed when the tide goes out. The assumption that vast bands of our local area have been concreted over doesn't stand up to inspection. However, the effect of housing undoubtedly spreads beyond its actual footprint, in terms of noise, pollution and roads.

Now I am not suggesting for one second we concrete over every inch of the locality, but the bottom line is we, as a country, are growing at a quicker rate than the households we are building. I appreciate the emotional effect of housing is greater than other land use types because most of us spend the vast majority of our time surrounded by it. As Brits, we live our lives driving along roads, walking on footpaths and working and living in buildings meaning we tend, as a result, to considerably overemphasise how much of it there is.

In fact, I was only flying home recently back from a short break abroad, when I looked down and I was reminded just how green Britain actually is!

The bottom line is Clapham people and the local authorities are going to have to put their weight into building more homes for people to live in. There is going to have to be some give and take on both sides, otherwise house prices will continue to rise exponentially in the future and Clapham youngster’s won’t be able to buy their own Clapham home, meaning Clapham rents and demand for private rented accommodation in Clapham can (and will) also grow exponentially.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

New Horizons For The Property Portal Marketplace

As our lives become increasingly entangled within the digital sphere, it's becoming even harder for various market sectors to exist exclusively in a physical space.

Whilst online transactions, and web-based trade are now commonplace, the companies that immediately adapted to this shift remain at the helm of their respective industries. This is a particularly accurate statement in reference to the property market as Zoopla and Rightmove have consistently lead property portal usership with the backing of agents country wide. However, the dominance of the previously discussed businesses has triggered accusations of a stagnant market, some critics even claimed that Rightmove and Zoopla Property Group had become a ‘duopoly’.

Expanding OnTheMarket

These sentiments fueled the launch of a competing portal owned by agents called OnTheMarket. Although, the site was established as the weaker party, OnTheMarket have now acquired a substantial share of the market within an equally brief period of time. Founded by a real estate trust consisting of agents such as Chestertons, Knight Frank and Savills, the relatively new portal has gained the support of agents who influence this fiercely competitive market. OnTheMarket currently has the backing of over 4000 agencies located throughout the United Kingdom.

The property association planned on acquiring finance from specialist investors to enable them to accelerate expansion plans for their website, utilising the funds to increase site traffic, widen their usership and maintain interest. The proprietors of OnTheMarket have since fulfilled that mission statement, and although still a distance away from the amount of listings placed on competing portals, OnTheMarket are now able to claim a one-third share of the digital property portal market with 6,000 individual estate agents and letting agents subscribed to the service and an expanding user base.

The Dispute

The high-street consortium shared a heated exchange with the 'duopoly'. Ian Springett, OnTheMarket 's CEO alleged Zoopla and Rightmove's respective founders "generate super profits for their shareholders at the expense of their agent customers”. However, a spokesperson for ZPG replied that OnTheMarket's 'One Other Portal' clause was unfair and uncompetitive.

The back-and-forth came after associates from Knight Frank and Savills were motivated to request a tribunal case after an agency named Gascoigne Halman, made efforts to break OnTheMarket’s terms of service by listing properties on multiple competitor sites.

Embroiled in a larger debate regarding an alleged agent boycott of Zoopla, this summer also saw the tribunal develop considerably as a judgment declared OnTheMarket's 'one other portal rule' for estate agents using the site was lawful.

This ruling prevented users of the site from listing on multiple competitor sites, effectively blocking duplicate listings from featuring on Zoopla and Rightmove at the same time.

Although this result was welcomed by the owners of OnTheMarket, the judgment has triggered a fallout with Zoopla due to the rumoured boycott previously mentioned. A rep for ZPG said “We welcome competition based on innovation and performance but firmly believe that OnTheMarket ‘one other portal’ rule is not in the interests of either agents or consumers.” Later stating that it was Zoopla's belief that OnTheMarket had “… failed to gain traction precisely because they don’t allow agents a free choice in their own marketing decisions and limit consumer choice and exposure.”

The Future Is Bright

OnTheMarket's CEO, Ian Springett said that that moving forward the portal's directors intend on furthering the expansion of the site and continuing to confront the ‘duopoly’, stating “in the immediate term, we will be ramping up our marketing activity to restore the strong growth in consumer traffic and leads OnTheMarket was delivering over its first two years of operations".

Considering the future implications of this decision, it's reasonable to assume that this is likely the beginning of the end for the property portal stronghold. If this is the case it will almost certainly make it easier for agents and consumers to discover a service that's right for their needs. Since the conclusion of the tribunal we have witnessed the roll-out of several new portals that specialise in everything from ex-council properties to housing LGBT renters. And while Zoopla and Rightmove still lead the industry, it's safe to say that their shared reign is nearing it's end.

Today's guest blog was written by Charlie Saunders of Assist Inventories, a property inventory services agency in London. Charlie arranges check-ins, inventories and visual inspections for my whole portfolio - mention the Clapham Property Blog if you enquire and be assured of a great service.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Increase in Interest Rates to cost Clapham Home Owners £983.80 a year

Clapham homeowners will be among those affected by the latest rise in the Bank of England interest rates. The first increase in 10 years; they have just been raised from 0.25 percent to 0.5 per cent. This uplift comes as inflation hits a 51-month high of 2.9 per cent whilst the national unemployment rate is at an all-time low of 4.3 per cent.

Interestingly, the Governor of the Bank of England has indicated that the interest rate is likely to increase again over the next couple of years, but Mr Carney said mortgages and savings would not be affected in the short term. However, look at all the big banks and just about all of them have increased their standard variable mortgage rate..

The average Clapham mortgage is £393,521

I have to ask by how much Clapham homeowners (on variable rate or tracker mortgages) will see their repayments increase?

In the SW4, SW8, SW9, SW11 and SW12 postcodes there are 21,080 homeowners with a mortgage, of which 9.056 have a variable rate mortgage (the remaining have fixed rate mortgages). The total amount owed by those SW4, SW8, SW9, SW11 and SW12 homeowners with those variable rate mortgages is £3,563,717,643, meaning the average monthly mortgage payment for those home owners on variable rate mortgages before the interest rate rise was £3,068.37 per month and now its £3,150.36 per month … meaning

The interest rate rise will cost Clapham homeowners on average an extra £983.80 per year

Whilst this is the first raise in interest rates in over 10 years, it must be noted it is at a significantly low level compared to figures in the 1970s and early 1990s. Many of my readers talk of interest rates at 17 per cent when Sir Geoffrey Howe increased them to try and combat the hyperinflation (from the fallout of the financial crisis that hit Britain in the 1970’s) and Norman Lamont in September 1992 with the infamous Black Wednesday crisis, when interest rates were raised from 10% to 15% in just one day.

So, what will this interest rate actually do to the Clapham housing market?

Well, if I’m being frank – not a great deal. The proportion of Clapham homeowners with variable rate mortgages (and thus directly affected by a Bank of England rate rise) will be smaller than in the past, in part because the vast majority of new mortgages in recent years were taken on fixed interest rates. The proportion of outstanding mortgages on variable rates has fallen to a record low of 42.3 per cent, down from a peak of 72.9 per cent in the autumn of 2011.

If more Clapham people are protected from interest rate rises, because they are on a fixed rate mortgage, then there is less chance of those Clapham people having to sell their Clapham properties because they can’t afford the monthly repayments or even worse case scenario, have them repossessed.

However, and this will be of interest to both Clapham homeowners and Clapham buy to let landlords …

.. for every 1% increase in the Bank of England interest rate, it will cost the average Clapham homeowner on a variable rate mortgage £327.93 per month

So, what next? Because UK inflation levels are at 2.9 per cent (the country’s highest rate since April 2012) and the Bank of England is tasked by HM Government to keep inflation at 2 per cent using various monetary tools (one of which is interest rates) – you can see why interest rate rises might be on the cards in the future as increasing interest rates tends to dampen inflation.

Now of course there is a certain amount of uncertainty with regard to Brexit and the negotiations thereof, but fundamentally the British economy is in decent shape. People will always need housing and as we aren’t building enough houses (as I have mentioned many times in the Clapham Property Blog), we might see a slight dip in prices in the short term, but in the medium to long term, the Clapham property market will always remain strong for both Clapham homeowners and Clapham landlords alike.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Lenders are tightening up and here's what it means for investors in South London.

Well it's been another busy month in property investing. Everyone is getting ready to tackle 2017, and by now very well underway to taking action to achieve their goals. If you are looking to invest further in property using good old-fashioned buy to let, be wary though as there are a few things to take note of...

Increased Taxes

I've discussed it before but I'll mention is again - the dreaded Section 24 (of income) tax means that you will be paying the taxman FIRST and then deducting your rental income costs. Brief example:

Old system:

£30,000 Rental profits after repairs

£20,000 Mortgage/loan interest

----------

£10,000 profit so tax bill based on 40% income tax = £4,000

New system:

£30,000 Rental profits after repairs

£30,000 Taxable income, 40% income tax = £12,000

£20,000 Mortgage/loan interest turns into a 20% credit = £4,000

So your tax bill is now £12,000-£4,000 =£8,000!!!! Point to note is that this will be phased in over the next 4 years, so in this example your net income will go down by £1,000 if you do nothing.

That's a whopping increase. Just to put these numbers into perspective it's probably your average owner of two flats in South London receiving a rental of £1800pcm each with a few repairs/improvements thrown in, with loans of about £400,000 on each paying about 3% interest. Could that be you?? Prepare to make less NET profit with your rental portfolio. But you're not alone. In fact, a lot of people did the same as you, kept hold of a flat as they climbed the ladder. Riding the wave of capital appreciation is now resulting in a crash landing. So seek advice and take action. One solution is to incorporate a limited company "newly poor landlord holdings limited" and transfer the flats into that portfolio. Problems arise however when you factor in Capital Gains Tax and Stamp duty, so it's likely that those costs will outweigh any savings for a long, long time (although you may be able to claim reliefs to put off the tax though). Plus of course that you need to pay 20% corporation tax on the profits and further taxes when you take the money out of the limited company. All food for thought and there is no "one-size-fits-all" solution. Seek professional advice.

Rental Stress Tests

Banks have, over the last month tightened up a little bit on lending. Whereas in the distant past a rental coverage of 125% of the interest payment would suffice (i.e. the rent was 125% of the mortgage payment), they changed it to 125% at a stress rate of 5% but now they have gone as far as to ask for 145% cover at 5% and sometimes even 5.5%. Why? Linked to the point above it's simply because taxes are on the increase and mainstream buy to let lenders are covering themselves, adding in several more layers of protection to make sure that payments are met.

So what's next for landlords in Clapham?

I remain unconvinced that incorporating and transferring the existing portfolio will be the best solution. If you are in Liverpool, Leeds, Sunderland, the outer Hebrides where property prices perhaps have not moved very much then CGT will be minimal, as will SDLT, Incorporating is the right thing because your rental income will be taxed at 20% (Corporation Tax) instead of 40-45% (depending on your income tax bracket). I will take a wild guess and assume that if you're reading this you will be in a good, stable job, enjoy what you are doing and are simply investing on the side. Very wise of course. But if you are looking to invest further I would certainly do it in a limited company going forward. It's a very straightforward process and shouldn't take more time than thinking of a name for a limited company and a few pounds to register it at Companies House. You can, of course, file your accounts and so forth yourself but if you are going through the trouble of reducing your taxes you will want to ensure you get the most benefits you can. I have a brilliant accountant of course, and she ensures I get all the tax breaks I can. If you'd like her details just drop me an email and I'll introduce you, no problem. Going forward I'd highly recommend seeking out a whole of market broker to enable you to get hold of some of the best deals from lenders that don't deal with the general public such as Kent Reliance, Precise and Paragon.

If you are a landlord and/or investor looking to maximise your portfolio profits then get in touch. I offer a range of things from portfolio reviews to site visits to give practical advice tailored to your property. Start the conversation by email.

Links for further reading on the matter:

The Property Reporter

MortgageIntroducer.com

Mortgagefinancegazette

The Telegraph

Transfer your Pension into Clapham Property!

We are about to embark on a busy year of investing in Clapham, Brixton and perhaps slightly further afield. Hopefully you have your finance ready and are waiting for the right deal to land in your inbox. But did you know that you could also invest your pension into property? This has the added bonus of many tax benefits.

Together with my esteemed co-host Trevor Cutmore I will be delighted to present the Clapham Property Meet on Tuesday, 31st January at the Bread & Roses, 68 Clapham Manor Street, SW4 6DZ. This month's guest speaker is Mike Holt, active investor for over a decade. Having negotiated over 350 purchases, and continuing to do so, he now specialises in unlocking pensions and allowing investors to access previously locked away funds. Pensions allow access to commercial property but a whole lot more. Mike will run through the options of this very tax-efficient way of investing.

Whether you are an experienced property investor, just starting out, or perhaps have cash sitting on the side lines, I am here to help members to network effectively and find win-win solutions by helping individuals to pursue fresh property investment opportunities. 

Do join us if you are interested in property investments, be it local or further afield.  

Registration and early networking is between 6-7pm with a top quality speaker as well as the latest on current issues from your hosts between 7-8:30pm. Drinks and further socialising/networking to follow the main event.

Please book your tickets here: https://www.meetup.com/Clapham-property-meet/events/235084445/

I look forward to seeing you there. Do get in touch via email me: jeroen@claphampropertyblog.com if you have any questions beforehand. Hope to help you soon to boost your Clapham property investment returns!

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

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
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

Hot Property in Cold Weather

What has the lettings market of 2015 told us thus far?

We have found in the past that January was an extremely busy month. Up until 2013 we would say it was the busiest month of the first two quarters. This was driven by relationships made and broken over Christmas and New Year’s resolutions to find a new home. We found that one and two bedroom properties were most popular in the early part of the year leading up to Spring.

2014 and 2015 have been different. A different trend is emerging.

This year and last we have noticed that there is a much higher demand for three and four bedroom homes. These offer a lower rent per person and are being snapped up quicker than they would have been a couple of years ago. I feel the main contributing factor is that tenants are now looking for bargains to minimise their spend on rent every month. This has also led to more and more tenants pairing up through on room share sites and through flat-mating events (equivalent of speed dating for a flat mate, could lead to romance - who knows?). in summary the cheaper one and two bedroom flats will still let relatively quickly but any landlords looking to achieve a large rent increase will have to be a little more realistic or may end up being left disappointed with an unexpected void period!

And so we conclude… 2015 so far has left us hunting for bigger properties!

Another great investment property!

Well, Christmas out of the way and it’s back on the investment bandwagon! I hope everyone had a welcome break. It certainly looks like the December blues are gone in the London property market and there are some lovely properties to be had.

I came across this particular one with Andrews the other day and I must say it is a charming flat. We have let before in Chalmer’s House and can assure despite it’s rather typical 1930s Art-Deco looks it boasts a host of other things. Rooms are spacious and there is a gym and a roof terrace for residents to enjoy. A lovely property to live in and hence popular with tenants, despite being a little further from Clapham Junction than one would like. Appealing to a slightly more mature tenant who can appreciate better value slightly further from the station this one is sound to attract a good quality tenant. Estimated rental income £350-£375pw, making this one yield 4.9%-5.2% gross at asking price. Not the highest yield in the world, granted, but looking at the photos there is not much more to do than furnish it with some good quality furniture. Bathroom, kitchen and general décor is A*. Happy bidding fellow investors! http://www.rightmove.co.uk/property-for-sale/property-32411193.html

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.

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.

How will stamp duty reform affect the Clapham property market?

The big news from George Osborne's Autumn Statement was a complete overhaul of the stamp duty system. The old "slab structure" has been replaced with a sliding scale along the same lines as income tax, with different rates applying only to the portion of the property price within each band.

From today, this means:

• No stamp duty will be paid on the first £125,000
• 2% is paid on the portion up to £250,000
• 5% is paid on the portion up to £925,000
• 10% is paid on the portion up to £1,500,000
• 12% is paid on anything above that

For the majority of buyers across the UK this can only be a good thing, with stamp duty decreasing or remaining the same on all purchases below £925,000. 

But what does it mean for the property market in Clapham?

There are currently 340 properties for sale within the SW4 postcode.

Of these, 33 fall within either the 250k-300k or 500k-550k range. The reform represents good news for the sellers of these properties, as under the old system their true value was often distorted due to buyer's reluctance to offer above the thresholds, where the increased rate applied to the entire value of the property (3% at 250k and 4% at 500k). 

With many buyers struggling to raise a large enough deposit to secure a mortgage, the reduction in stamp duty from £7,800 to £3,000 on a £260,000 property will have a significant impact, with greater demand anticipated in cheaper areas such as the Solon New Road Estate and the Clapham Road Estate. First time buyers will hope to compete for properties which would usually be snapped up by buy-to-let landlords.

Clapham will, however, feel the negative effects of the reform far more than neighbouring Brixton and Stockwell. In upmarket areas such as Abbeville Village and Clapham Old Town, buyers are going to feel the pinch, and this could have a knock-on effect further down the chain.

95 properties in SW4 are on the market with asking prices in excess of £925,000. The majority of these are 4+ bedroom family homes on streets such as Cautley Avenue, Narbonne Avenue and Lillieshall Road. 40 of the 95, on streets such as The Chase and Macaulay Road, have asking prices in excess of £1,500,000. At that level, buyers are at least £18,750 worse off. It's fair to assume that in the short term at least, they may look to offset this loss by making slightly lower offers.

If you have any questions regarding the stamp duty reform, or you'd like to know how it might affect your property, give me a call on 020 3397 2099 or email me at jeroen@xandermatthew.com.

You can calculate the stamp duty on your property purchase here:
http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm

Auction: 5 bed between Clapham and Wandsworth Commons

This five bedroom terraced house in Mayford Road SW12 is available via Barnard Marcus Auctions and goes under the hammer on 16th December.

http://www.rightmove.co.uk/property-for-sale/property-49351424.html

The property appears to be in reasonable condition - an empty shell ready to be turned into the superb family home that the location warrants. Mayford Road is very highly regarded and is just a stone's throw from Wandsworth Common Station (for London Victoria) and easy walking distance from Balham Station for the Northern Line. 

With a guide price of £900,000, it's a potentially lucrative investment opportunity. In February 2014, a five bedroom terraced house in Mayford Road, finished to an extremely high standard throughout, sold for £1,795,000, while another comparable four bedroom property is currently on the market with an asking price of £1,650,000.

Viewings with Barnard Marcus Auctions are scheduled for 1.30pm on the following dates:

Friday 5th December

Tuesday 9th December

Thursday 11th December

Monday 15th December

If you're a developer or buy-to-let landlord who's spotted a potential investment opportunity, why not ask my opinion with no obligation? Give me a call on 020 3397 2099 or email me at jeroen@xandermatthew.com.

Buy-To-Let bargain

Just a quick one from me today - blog followers will remember this three bedroom flat in Camberwell from a couple of weeks ago. 

http://www.rightmove.co.uk/property-for-sale/property-49183244.html

The asking price has now been reduced from £335,000 to O.I.E.O £300,000. This represents a potential rental yield of up to 6.7%, a great opportunity for any buy-to-let investor. 

If you're a landlord or developer who's spotted a property with investment potential, email the web link to jeroen@xandermatthew.com and I'll be happy to give you my opinion. 

Buy-To-Let in Streatham Hill

This two bedroom flat in Streatham Hill has been on the market with Haart for just over a month, and was reduced today from £295,000 to £288,000.

http://www.rightmove.co.uk/property-for-sale/property-46638283.html

The ground floor flat in Balcombe House, SW2 is within walking distance of Streatham Hill station (for London Victoria) and offers two good size double bedrooms as well as a large reception room. In the current rental market it could be expected to achieve £1,400pcm, offering a 5.8% yield at asking price. 

It's not uncommon for properties in the £250,000 - £300,000 range to have difficulty attracting buyers because of the stamp duty threshold. It's likely that the vendor would entertain offers lower than the asking price, enabling a buy-to-let investor to maximise their yield.

Thinking of buying, selling or letting? Ask my opinion with no obligation by giving me a call on 020 3397 2099, or email me at jeroen@xandermatthew.com.

Development opportunity on Cavendish Road

The lots for December's auctions have been released, and this four bedroom property in Balham SW12 looks to be one of the best opportunities available for developers and investors.

http://www.rightmove.co.uk/property-for-sale/property-32958450.html

The property on Cavendish Road goes under the hammer on Wednesday 10th December with Auction House London, with a guide price of £675,000. It's available with 124 years remaining on the lease, and planning permission has already been granted to create a separate lower ground floor two bedroom flat in addition to extending the existing two bedroom garden flat. 

With its enviable location close to Clapham South Tube (Northern Line) and The Common itself, two bedroom period flats on Cavendish Road can fetch anywhere from £500,000 to £700,000, depending on condition and outside space. 

Viewings can be booked with Auction House London (020 8012 3603) and are scheduled for the following times:

Thursday 27th November 14:30

Monday 1st December 13:30

Thursday 4th December 14:30

Monday 8th December 13:30

If you have your eye on a development or buy-to-let opportunity, why not get a second opinion? Email the Rightmove or Zoopla link to jeroen@xandermatthew.com and I'll be happy to give you my thoughts.