Bournemouth Landlords – How do your rental prices compare??

Whilst having an investment conversation with a Bournemouth landlord last week he asked me a question about how his properties were performing against the average in the area. So below was the research graph I showed him:

This graph showed her that his 1 bedroom property on the Talbot Woods / Winton border was outperforming the average 1 bedroom in the area by some distance. It was renting for £695.00pcm in 2015 (market average at £585.00pcm) and has just renewed at £725.00pcm at the end of 2016. A statistic that he is very happy with, as this shows it is out-performing the market average by over £100 per month now and shows an increase of 4% (as opposed to the market average of only 2%)

Just as I finished this conversation another client called, with a maintenance issue. Once we dealt with the details of that and arranging a contractor to fix it, I informed them of the previous conversation I had just had and he asked how his 3 bedroom house in Winton was performing against the average. The graph shows the average 3 bedroom property in Bournemouth rents for £1009.00pcm (on average from Oct ‘15 – Sept ‘16) whereas his 3 bedroom house in Winton was renting for £1395.00pcm. His property is a 3 bedroom 2 reception room detached house wit stunning rear garden and garage, so was always going to be out-performing the average but it is always lovely for a landlord to see the choices they made, the property we let for them is doing so well.

Please do use this graph above to judge your property against the market average, and if you want a 2nd eye to look it over or want a true market valuation with supporting evidence report then please do give me a call or email me and I’d happily take a look for you.

Read more articles: Why not read more articles from the Property Blog | Bournemouth by clicking this link..

Speak to me: If you’d like to speak to me about anything in this article, or anything property related please do drop me an email at aaron@gordonbarker.com. I’d love to hear from you.  

 

 

 

 

 

BH8 experiences sharp rise in 2016..

So, its February and it’s a great time to recap on what 2016 gave us, took from us and a look forward at what 2017 has in store. Whilst drinking my morning coffee, and munching on a crumbling chocolate cookie (new year, new you fitness regime suffered a momentary loss of momentum) I felt it only prudent to assess the best of 2016. So here goes: 

At one point, there were 355 properties being market, in July 2016, which was up from 293 in the corresponding month of 2015, That’s a rise of over 21% in marketed properties. And August followed suit with a rise of over 23% in market properties. But what did that do to prices? Well, by the end of August 2016, compared with August 2015, we saw the average semi-detached house and terraced house prices rise by 23% and 17% respectively and flats rise by 7%. Now that’s good growth year on year.

My experience within Bournemouth BH8 concurs with these stats. There was certainly a feeling of increased property on the market, and that prices had risen but this has meant that owners need to be realistic about what their property is worth to sell it successfully. It has never been more important to ensure accurate and realistic pricing when wanting to sell in good time.

We note that prices have risen in that time, but the rate of the raise needs to be considered when looking to sell as marketing at too high a price while there are a larger number of properties on the market can be detrimental to selling as those around will sell before yours if they’re priced more approximately. This is why I feel it is more important now, than ever before, to be realistic with pricing to attract the buys and not push them away. A property marketed at the correct price, with the correct advertising and using the right medium will result in a successful sale.

Read more articles: Why not read more articles from the Property Blog | Bournemouth by clicking this link..

Speak to me: If you’d like to speak to me about anything in this article, or anything property related please do drop me an email at aaron@gordonbarker.com. I’d love to hear from you.

FERNDOWN PROPERTY OWNERS – What’s happening to your property??

Ferndown property owners…how is your property performing?

Whilst sitting and arranging our visit to an event in Ferndown coming up it intrigued me to think exactly how property in Ferndown has performed over the last few years.

Rightmove.co.uk, as we know is the biggest property portal in the country, shows us that in November 2014 the average price of any house sold in Ferndown was £299,960 and by October 2016 this has risen to £335,870. That shows a BH22 average price rise on properties sold of approx 12% in just 2 years. Looking into this in a bit more detail shows that this has been a steady increase across that period, with the exception of a few spikes due to some larger properties being sold in one off sales.

Zoopla.co.uk also shows a similar increase with approx £300,000 being the average house price in BH22 in 2014 and over £350,000 being the anticipated average house value in 2017…again this is a staggering 16% 3 years. A great performing area. But why might this be?

Ferndown is an area that feels like it’s improving year on year in every aspect we see. There are new properties being built all the time, new blocks and new developments and there is a constant notice of new roofs, new cladding, refurbishments that can be seen when travelling around. Occupants and property owner of Ferndown are themselves increasing value. A new M+S food hall has recently been finished and a high street coffee shop chain is also now in Ferndown along with the large Sainsbury’s and large Tesco supermarket it now offers essential food shopping (plus some extra bits) to all family types in the area and a popular cup of coffee / mocha / hot chocolate to go with it. More and more reasons for local residents to stay in Ferndown as opposed to travelling to other local areas for these things…

The Schools in Ferndown also rank highly with Ofsted with results of ‘Good’, ‘Good’ and ‘Outstanding’ for Ferndown First, Parley First and Hampreston First respectively. Ferndown upper has also now turned around what was a previously indifferent Ofsted report to a ‘Good’ status and it’s GCSE and A Level results are believed to be are on par, or above that of it’s local rivals in Wimborne / Cranborne areas. And with the long awaited opening of a new school, Parkfield, in Hurn this will continue to push the competition within schools and ultimately the standard of schooling.

Schools are increasingly becoming a large reason why young families move to and area an buy, or rent and with the current situation looking good for schools, shopping and a large (and ever expanding) industrial estate Ferndown really looks to be a good place to be buying and/or living

And as for renting, whether this be looking buying a BTL rental or looking to move and rent in Ferndown all the same reasons apply as to why this is a great rental area. Especially with such easy access in / out of Hampshire and other areas of Dorset and less that 2 hours to central London it offers a huge amount to household of all shapes and sizes.

And of course, we can’t forget the stunning Ferndown Golf Club, that attracts new buyers and residents every year, and the amazing homes and beautiful garden we see from Golf Links Road that really do set the standard within Ferndown.

We love looking into our local property market and will showcase other areas surrounding Bournemouth soon. But for now here’s Ferndown as we see it..

We will be exhibiting at a local Trades and Services Fair on 18th Feb 2017 at The Barrington Centre next to Tesco, be sure to pop down and see us that day! 10am – 3pm and we’re always happy to talk Ferndown, Ringwood and Bournemouth / Poole property markets for both sales and lettings with anyone that wants a chat

Always to happy to speak about our local property market so feel free to email me on aaron@gordonbarker.com any time.

What should you consider before getting into BTL??

What should I consider before committing to buying Buy-to-Let property?

Like any investment, buy-to-let property comes with its risks; there is always a risk as with any investment. Below are a few steps to consider before making any decision.

1. Research the market

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits?

Make sure that buy-to-let is the investment you want. Your money might be able to perform better elsewhere. In tough times a high-rate savings account will beat most investments. If you know someone who has entered the buy-to-let market, ask them about their experiences, or chat with other investors. GordonBarker can also introduce you to IFAs and other financial contacts to help with the decision making process.

2. Choose a promising area

Promising does not mean the most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons. Where in your town has a special appeal? If you are in a commuter belt, where has good transport? Where are the good schools for young families? Where do the students want to live?

Have a look at the rental market and homes to buy online or speak to someone within our office to help you with the desirable areas for the type of tenants you are looking for.

3. Do your maths. Is it financially viable?

Before you think about looking around properties sit down with a pen and paper and write down the cost of houses you are looking at and the rent you are likely to get. These days most lenders want a minimum of a 15% deposit, which protects against falling prices, and in the wake of the problems in the mortgage market many are now demanding 25% deposits. On some occasions the best rate buy-to-let mortgages also come with large arrangement fees, so be sure to factor these in too

  • Can you afford an increase in interest rates?
  • Would you be able to cover interest payments if you had no tenant?
  • If the boiler, or other vital equipment, breaks could you afford to replace it immediately?

4. Get Independent financial advice

Do not just walk into your bank and building society and ask for a mortgage. It sounds obvious, but people who do this when they need a financial product are one of the reasons why banks make millions in profit. GordonBarker can introduce you to a number of IFAs, mortgage brokers and other financial contacts that can help you pick the best deal for you

5. Who is your ideal tenant?

Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant. Who are they and what do they want?

The team at GordonBarker are very experienced with tenants of all types from students to retired professionals, and young professional families to those on housing benefit. Each property type will likely attract a certain tenant type, this is a huge factor that needs to be considered before buying anything.

6. Don’t be over ambitious

We have all read the stories about buy-to-let millionaires and their huge portfolios, but a lot of these have gone bankrupt by over extending. Be sure that you can survive any market condition that is predicted or likely in the coming 5 – 10 years. With house prices at a high level currently then buy-to-let investing should be seen as an income, and long term capital growth rather than short term capital growth.

Short term capital growth, buying at BMV and flipping are other forms of investment into property that could also be explored.

7. Consider looking further afield

Most buy-to-let investors look for properties near where they live. But your town may not be the best investment. The advantage of a property close by is being able to keep an eye on it, but if you will be employing an agent anyway they should do that for you.

Cast your net wider and look at towns with good commuting links that are popular with families or have a sizeable university.

We are very fortunate in that parts of Dorset and Hampshire are very good buy-to-let investment areas with house prices rising, rental prices are also rising for popular property types and there is an abundance of tenants looking for good quality property at present.

8. Negotiate over sale price

As a buy-to-let investor you have the same advantage as a first-time buyer when it comes to negotiating a discount. If you are not reliant on selling a property to buy another, then you are not part of a chain and represent less of a risk of a sale falling through. This can be a sizeable asset when negotiating a discount.

9. Know the risks

Before you make any investment you should always investigate the negative aspects as well as the positive.

Even in popular areas properties can sit empty, tenants can become redundant / lose their jobs and rent can just not be paid by a tenant. Rent recovery, eviction protection and rent guarantee policies offered by GordonBarker can really help to reduce the risk of lost rent.

One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for 6 weeks of the year – this gives a substantial buffer that in most cases will never be reached. Tenants are becoming longer and longer terms and it is more likely that years could go by with the same tenant in situ.

Homes often need repairing and things can go wrong. If you do not have enough in the bank to cover a major repair to your property, do not invest yet. When a property is kept in a good state of repair on the whole tenant’s do respect that and will keep it that way. Regular cleaning, decorating and repairs will keep a good tenant and keep them for longer too.

10. Consider how involved you want to be…

Buying a property is only the first step. Will you rent it out yourself or get an agent to do so?

All agents will charge you a management fee, but will deal with any problems and have a good network of plumbers, electricians and other workers if things go wrong.

You can potentially make more money by renting the property out yourself but be prepared to give up weekends and evenings on viewings, advertising and repairs. And be sure that you know how to deal with non-payment, be sure you have the correct procedures in place for renewals, gas safety certificates, fire and soft furnishing regulations, carbon monoxide alarms legionnaires testing and a whole host of other legal requirements that a landlord must adhere too. When you manage the property yourself you need to be sure you are following the rules, as a tenant that knows the rules more than the landlord is a very dangerous thing and can be very, very expensive if it’s not done incorrectly.

I am always happy to discuss any BTL purchase before you make it to ensure you are getting what you want / need from the deal. Feel free to email me anytime at aaron@gordonbarker.com or call 01202292400