Finding Property Hotspots Part 2

February 5th, 2010

If you’re on the hunt for those elusive property hotspots, or soon to be hotspot areas, then here’s another aspect to explore that could lead you to investing in the right area.

We’ve already looked at how looking for areas that are improved by new and better transport links can signal potential for the development of a property hotspot and another way is to look out for details of new regeneration schemes being planned or started.

Regeneration schemes involve, as the names suggests, money and development being ploughed into areas that are rundown and need a boost. It often happens in areas of towns or cities that have seen better days, or where there’s a land opportunity to build and expand. Investors who’ve taken the plunge and invested in property in previous regeneration schemes often reap the benefit of their initial risk in the long-term, when people and businesses begin moving into the newly regenerated area.

How to Find Regeneration Scheme Plans

To hunt down possible areas where regeneration is being planned, you’ll need to do a degree of research. Keeping an eye on local news and planning departments is helpful, but if you’re not located in a region that is earmarked for regeneration, then online research is a good way of finding out what’s happening elsewhere in the UK.

For example, you could keep up with news by reading local and regional newspapers online or, for a time-saving approach, set up a search on Google to automatically let you know of any mentions of new regeneration scheme plans.

It can be a bit tricky knowing exactly when to buy – too soon, and the regeneration plans may fall through or get pushed back, too late and you could miss out on making a profit – but there are sadly no hard and fast rules as to what’s best and a lot of it comes down to good instinct and sound research.

The main thing is to carefully research what the regeneration plans are including. A good regeneration scheme will not only be looking to provide new homes and buildings, but also offer good incentive for local businesses, communities, schools and leisure facilities.

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Old Build versus New Build and Off Plan Property, Part 1: Cost

February 4th, 2010

There are pros and cons involved in buying any type of property, but in this mini series, we’re going to explore the positives and negatives of three key types of properties – old build homes, new build and off plan properties.  Investors are faced with many dilemmas and opportunities when it comes to investing in property so in this mini series we will detail some key facts to help you make the right investment choices for you.

To start things off, we’re going to begin by looking at the issue of cost, something that’s a major factor in the purchase of properties for many investors.

Old Build

Pros – With old build properties, one of the major attractions is that there’s often more bargaining power available in terms of cost, especially in the current economic climate. In the case of below market value (BMV) properties in particular, it’s possible to pick up some great property investment bargains. Older properties also tend to be bigger in size, so you get better value for money.

Cons – You do have to know where to look to get the best bargains. There will always be some old build homes in desirable locations that hold their value and can’t be bought for a good deal. Some older properties will have suffered a lot of wear and tear, or may need updating. If it takes time, then you could lose valuable time and money before you can get a tenant in.

New Build

Pros – If you’re purchasing a new build property, it’s brand new and you won’t need to spend money on doing it up for rental. Plus, extra incentives are also often available, such as brand new appliances or the chance to choose how the interior is decorated, which can all help with your costs.

Cons – When you buy a brand new property, you’re often paying above the odds for it. Also, if you’re going to use it for rental purposes, you need to be able to make a decent profit from renting it out, especially if you’ve got mortgage payments to cover.

Off Plan Property

Pros – The cost of off plan properties is often a major selling point. As they’re being sold off-plan, as opposed to newly built, the cost can be considerably lower, which attracts some buyers.

Cons – Sadly, the low price can sometimes turn out to be too good to be true. For example, it may be a reflection on the fact that the properties on the development aren’t selling, which could mean that it will take ages for it all to be finished. There’s no fun for anyone, even tenants, to live on a building site.

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Finding Property Hotspots Part 1

January 29th, 2010

As a property investor, or a soon-to-be new investor, you’ve no doubt heard talk of the benefits of finding property hotspots. These are areas that are, for a variety of reasons, up-and-coming and, for property investors, the big pull is that property prices may initially be low, but have the potential to significantly rise.

As every property investor wants to make money on their investments, investing in somewhere that could help provide that all important profit is a crucial factor – especially when the initial investment needed may be quite low.

But if you’re new to the property investing world, or are looking to branch out with a few new investments, how do you go about finding those all important property hotspots?

Improved transport links

Good transport links are important for anyone commuting to work and can play a role in making a place a property hotspot. In most of the established commuter belts, property prices are likely to be high, especially in areas within major cities, such as London.

However, when new transport links are launched or improved, it opens up the possibility for new property hotspots to emerge too. For example, in December 2009 the high-speed Javelin train service from Ashford to London launched, knocking significant time off many journeys into London. 

Whilst some areas of Kent, like Tunbridge Wells and Sevenoaks, are already quite pricey, there are still other areas where prices have the chance to grow and long-term rental properties could be in demand. Towns and villages in East Kent, for example, might be worth exploring.

The Kent high speed train link is just one example of how improved transport can boost an area, but the same scenario, involving different types of transport, can often have a similar effect. So keep an eye out for new developments involving motorways, link roads, trains, plane routes or airport runways.

The one thing to remember with finding property hotspots is you have to act early. If you hang about to see how the property market will fare, you could well miss the boat or the chance to snap up a bargain early, before the market rises.

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10 top tips for maximising kerb appeal

January 26th, 2010

When you’re getting a property ready for letting, it’s easy to concentrate on making the inside presentable. But don’t forget to tackle the outside too, whether it’s a house or a flat, as the area leading up to your property is equally important and can make or break first impressions.

If you’re getting your property ready for its first ever viewings, or will soon be looking for new tenants, here are 10 top tips for maximising the kerb appeal of your property.

1. Clear the path

If there’s a path, driveway or steps leading up to the front of your property, then it’s good to make sure that it’s clear and clutter free when new tenants arrive for viewings. Sweeping up any old leaves, picking up litter or cutting back overhanging hedges will all improve your kerb appeal.

2. Paint the front door

If the front door is looking a bit drab and faded, then why not give it a quick lick of paint? It doesn’t take long and can significantly transform the look of your property. If you’re feeling brave, choose a bright colour in a gloss finish to really make your door stand out.

3. Ensure the windows are clean and presentable

People walking up to your property will notice the windows on their approach, so make sure they’re clean, and not sporting dirty marks.

It’s also worth checking the state of the window frames. If they’re rotten, think about whether it’s time to replace them, or if there’s paint peeling off them, give them a fresh coat. First impressions count and if the property looks cared for, it could attract more interest.

4. Ensure the number or house name are easy to spot

There’s nothing worse than a tenant not being able to find your property, or being unsure which one it is. So ensure the number or name is clearly displayed and easy to spot – as well as making a good first impression, it will make life easier for them once they’ve moved in too.

5. Get planting

A well-kept, smart looking garden is great for kerb appeal, but even if you don’t have much space, you can still pep up the entrance with the help of a few pots of plants. Spring flowers, like daffodils or crocuses, add a lovely splash of colour, or in the summer you could have a hanging basket.

6. Mow the lawn

If the property has a lawn out front, however large or small, then ensure that you’ve mown it, swept up bits of grass and trimmed the edges. Treat any patches of moss in the spring, and keep the lawn watered during hot summer spells. A well kept lawn will look instantly better than an unruly one.

7. Hide the bins

When you have limited space available outside, wheelie bins often have to end up at the front of your property. Sadly, although useful for rubbish needs, they’re not the most attractive thing to see as you walk up to a property.

Where possible, do what you can to hide the bins to minimise their impact – a simple piece of trellis or fencing in front of them can work well, for example.

8. Make sure the entrance is well lit

Most potential renters probably won’t be visiting your property at night, but people do often go back at different times of the day to check out the area. Making sure the entrance is well lit can make a difference and reassure tenants that they won’t end up scrabbling around in the dark to let themselves in at night.

9. Check the doorbell works

Whether your front door has a doorbell or knocker, make sure it’s easy to spot and works. There’s nothing worse than a tenant arriving at the door, but being unable to attract your attention.

10. Ensure letterboxes are clearly marked

If you’re letting a flat, then make sure individual letterboxes are available and clearly marked, as tenants will want to be assured that they’ll be able to get their post efficiently.

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Time to check your boilers – boiler scrappage scheme details revealed

January 13th, 2010

It’s time to get checking the boilers in your rental properties, as full details of the new government boiler scrappage scheme have been announced.

The Chancellor first put forward the idea of a boiler scrappage scheme in his pre-budget report in December 2009 and the full details have been quickly put together. The idea is that landlords and homeowners in England trade in their old, inefficient boilers and receive a discount of £400 towards the cost of a new boiler.

To qualify for the scrappage discount, the boiler must be a G-rated or worse. Also, if you’re under 60, then the boiler you’re scrapping must be in working order and the main boiler used to heat the house.

The scheme currently only applies to properties in England and landlords who rent homes and home owners are eligible; social landlords, housing associations and boiler installers aren’t.

However, British Gas and npower have recently launched their own versions of the boiler scrappage scheme, in competition with the government, and these both cover properties in Scotland and Wales.

If you’re not sure if your boiler is G-rated, then the Energy Saving Trust suggest:

• If it’s a gas boiler and has a permanent pilot light, then it’s likely to be a G-rated boiler.
• If it’s gas fired and over 15 years old, it’s likely to be eligible.
• If it’s oil fired and over 20 years old, it’s likely to be eligible.

You could also check your boiler eligibility on the Government Boiler Efficiency Database or the SEDBUK Boiler Efficiency Database.

The downside of the scheme is that it will only be available to the first 125,000 people to apply – so get your skates on if you think you’re eligible.

You can find more information about applying for the scheme on the Energy Saving Trust website.

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Gain valuable insight into London rental prices

January 13th, 2010
Map of London rental prices

Map of London rental prices

If you’ve got rental properties in London, or are thinking of investing in property in the area during 2010, then you can now gain an important insight into rental property prices in the capital.

London Mayor, Boris Johnson, has launched London Rents, a website providing a look the rents achieved at properties across London. Although still in its early stages, the site currently has rental prices for about 11,009 properties in the capital and provides useful information about the average cost of renting a property. The information has been gathered from a sample of private tenancies created over the last 12 months and the aim is to update the information on a monthly basis.

With regular details being uploaded onto the site, it should give a fairly accurate picture of the state of property rentals in London.

The site is a treasure trove of information for landlords as well as tenants If you’re not familiar with the city, then the colour-coded map of rental prices provides valuable information about the areas where the highest and lowest rents can be gained, which could help in your decision-making process of where to buy rental property.

For example, Dartford is currently shown as the cheapest place to rent, where the rental price of a two bedroom property averages out as about £160 per week. The most expensive area in London is South Kensington, where the landlord of a two bedroom property gets an average of £625 per week.

With London being of the largest private rental sectors in England, with over 650,000 properties available for rent, the site looks promising so far and we look forward to seeing how it progresses over the months to come.

What do you think? Will the site be useful for your property rental business?

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Are you an energy savvy landlord?

December 24th, 2009

How much attention do you pay to the energy efficiency of the properties you’re letting out? According to a new poll, this is something that many tenants are now paying attention to and would even be willing to pay more for energy efficient rental properties.

UK energy supplier E.ON, in conjunction with the National Landlord Association, recently surveyed tenants and landlords and found that 75% of UK tenants regard energy efficiency as a key factor when choosing where to live. Almost half of those – 48% – also said they’d be prepared to pay a higher rent for a more efficient home.

Of those interested in energy efficient homes, 60% were in the 25 to 34 year old age group and two thirds (66%) had higher budgets and were looking for properties at the top end of the market.

However, despite this interest in paying more for energy efficient rental properties, 43% of respondents said that they didn’t feel their landlord cared about this issue and didn’t seem to want to spend money on improving energy efficiency.

With energy efficiency clearly becoming a new selling point for rental properties, there’s scope for landlords to get more savvy and include this in their marketing. It doesn’t have to mean lots of extra expense – you can start with simple measures, such as using energy saving light bulbs and putting in extra insulation.

“Collectively, buildings are responsible for almost half of the UK’s carbon emissions, so home improvements benefit not only tenants, but also help all of us reduce our impact on the environment,” commented John Fawcitt, Energy Efficiency Manager at E.ON.

If you want to explore energy issues more, then E.ON have produced a new Landlord Information Pack – http://www.eonenergy.com/NR/rdonlyres/8ADF860A-EB4C-496A-8DBE-68C605793B39/0/Landlordpack_Layout1.pdf

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Common winter property problems and how to avoid them: Part 2

December 21st, 2009

As our previous post discussed, landlords never know when problems will occur with their rental properties. The cold, wet and snowy winter weather can trigger off problems though and some of them can be avoided by making time of maintenance.

Blocked gutters

It’s easy for gutters to become blocked, with leaves, moss and other debris and, whilst they may be fine left like this for a while, if the weather turns and brings sudden heavy rain or snow showers, it can pose a problem.

If there’s nowhere for the rain water to drain, then it will end up overflowing. As well as being an initial inconvenience to have water flowing where it shouldn’t, it can cause serious long-term damage to your property too, causing fascias, soffits and windows to rot and encouraging dampness.

The problem isn’t always helped by tenants not immediately noticing the issue, for example, if the gutters are overflowing at the back of the house.

Of course, the chances of this happening can be reduced by regularly having the gutters cleared out. It’s a good idea to do it in the autumn or early winter, after leaves have fallen and before the weather turns and to give them another clearout in the spring. 

Loose tiles

In heavy rain, snow and wind, it’s not unusual for tiles to become loose on the roof or even blow off. No landlord wants to be left with tiles that have blown off their properties, but it’s sadly not always something that tenants notice.

To check no tiles are loose, or have disappeared, an annual or twice annual maintenance check could help notice tile issues before they become too much of a problem. So get your maintenance check booked in before the weather turns and such services are in even more demand.

If you do experience problems at any of your properties, then your tenants will appreciate it if you help sort out the problem quickly. One of the benefits of using a property management company is that they should have a list of reliable maintenance engineers handy and should deal with problems promptly.

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Common winter property problems and how to avoid them: Part 1

December 18th, 2009

Problems with rental properties can occur at any time of year, but during the cold, wet or snowy winter months, they’re particularly common. Although some maintenance problems will always occur randomly and when you least expect them, some of the issues can be pre-empted and reduced by a bit of forward thinking.

Broken boilers

Boilers have a tendency to break down when you least expect them, but it usually seems to happen when the weather is cold and your tenants need heat.  If the heating hasn’t been on for a while, when it’s turned back on, problems can surface, or the boiler can breakdown if its old, being overused and is coming to the end of its life.

Not all boiler issues can be predicted, but if you schedule in an annual boiler service at the beginning of the winter, then some problems could be avoided. In case boiler engineers can’t come out immediately, or have to order parts, then it’s a good idea to have some emergency heaters available for your tenants, so they’re not left without any heat, especially during the coldest months of the winter.

Frozen pipes

With below zero temperatures and decidedly chilly weather, it’s not unusual for pipes to freeze. This isn’t a good scenario for property owners, as when water freezes it expands – and if pipes freeze, this can result in them bursting and causing all sorts of damage to your property.

During the winter months, frozen pipes are a risk, but there are things you can do to minimise the risk. All vulnerable pipes, especially those in the loft or any areas liable to freezing, should be adequately lagged – the thicker the better – as this can help prevent the pipes from freezing.

Problems can often occur when tenants go away, for example for Christmas or on holiday, and turn the heating off. In severe weather conditions, it can be helpful to leave the heating on to help prevent pipes from freezing. Alternatively, you could suggest they leave the loft hatch open, as this can help warmer air from other parts of the house circulate.

If you know your tenants are going to be away for a while and the weather is bad, then you could always schedule in a property visit to check that the pipes are okay in their absence and that nothing untoward has occurred.

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Pre-Budget Report

December 10th, 2009

The Chancellor, Alistair Darling, recently gave his pre-budget report, but are landlords and property investors going to be any better off? 

Sadly he dealt the news that the stamp duty holiday (http://www.investment-properties-for-sale.co.uk/2009/11/20/last-chance-to-take-advantage-of-stamp-duty-holiday/) would officially be coming to an end on 1st January 2010. It’s helped so many people to save money with the purchase of properties, and helped prevent the property market from becoming stagnated during 2009, so it’s a great shame to see it go. It will return to the usual level, of buyers having to page 1% stamp duty fees on all properties priced at £125,000 or over. 

On a more positive note, the Chancellor announced details of a new boiler scrappage scheme – similar to the popular car scrappage scheme – that will be introduced early in 2010. Although details are sketchy at the moment, it will enable people who have old boilers with a G rating (the lowest efficiency level) to trade them in for £400 towards the cost of a new boiler or renewable heat unit.  

As boilers account for up to 60 per cent of emissions in the UK, it will not only give homes a more efficient boiler, but also help the environment too. It could also help landlords cope with the hefty cost of installing new boilers. It sounds promising, so we’re looking forward to hearing more details in due course about this scheme. 

For more details about the pre-budget report, see http://prebudget.treasury.gov.uk/

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