Archive for January, 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.

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.

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.

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?