Buy to Let - Is the Borough of Merton good place to buy?

I have recently been speaking with a number of landlords about the importance of a balanced portfolio, when buying and renting out property. The balance between buying properties that offer good monthly returns or high yields but quite often offer poor capital growth (i.e they don't increase in value that much over the years compared with the average) verses properties that do go up in value quicker but often offer a  lower yield. Another consideration has to be the mix of town properties within a borough.

Choosing the right town though is very important. Location is the primary factor that drives decisions from buyers and tenants. Numerous landlords have expressed a preference for investments that are in a good location with accessible transport links. One borough that has a high demand with tenants is Merton, particularly due to the Croyden Tram Link which operates from central Croyden to Wimbledon where there is an interchange for the London Underground and the British Rail.

Data from the Land Registry said the borough of Merton property market has risen by 10.6% higher than May 2014. With an average property value of £744,000 in Wimbledon and average rents in the order of £1,300 per month, the average yield achieved in Wimbledon is a miserable 2% a year... you might as well put it in the bank! An average property in Morden is £359,200 with average rents in order of £1,250, giving you yields an average of 4% a year. You'll have to go to Mitcham to see some results. An average property value in Mitcham is £302,600 and rents on average are around £1,200. The average yield achieved in Mitcham is an impressive 4.5%!

So, does that mean you should buy a property in Mitcham as a buy to let investment? Before I can answer that, you must really consider the capital growth vs yield question. Some Wimbledon buy to let investors often make the mistake of choosing yield over capital growth and believe that by chasing high yielding properties, in say the poorer parts of the borough, they will make a faster profit than waiting for capital growth. The problem with this is that to achieve high yield you usually have to compromise on capital growth.

Therefore it would seem the most logical solution is to find a high yielding property in a strong capital growth area but, these are incredibly rare, and in actual fact, most of the time, lower yielding properties have a better capital growth. This is because there is generally a contrary relationship between yield and capital growth so the higher the yield, the lower the capital growth and the higher the capital growth, the lower the yield. Property investment in Wimbledon and the borough of Merton is about balancing the two.

If you would like to discuss about property investment in the area, be it Wimbledon or Mitcham or any other towns including the borough of Merton, you can email me at sam@masonandco.co.uk.

2 bed flat with a 4.7% return in Colliers Wood

It's been a scorcher this week, and looking through the market for some 'hot' properties, I have spotted this little number.  

This property is a 2 double bed first floor maisonette situated in a quiet cul-de-sac, in Runnymede, Colliers Wood. It's a spacious property in not bad condition with fitted kitchen and bathroom and a back garden. However, looking inside it can do with a bit of brightening up.

This flat has just come to the market for £305,000 with Eddison White and would achieve a rent easily in the region of £1,200. Getting our yield calculator out, you are looking at an annual return of 4.7%, before any service charges and ground rents etc.

If you would like any advice on what you should, or shouldn't be buying, you can call me on 020 8947 6613 or email me on sam@masonandco.co.uk.

http://www.zoopla.co.uk/for-sale/details/37390834

Wimbledon And Its Borough

In a previous article I said that average property values in Wimbledon is £744,000 and over the last two years Wimbledon property values had risen by 14.5% (a rise of £94,219) This is great news for anyone who owns their own home in Wimbledon.

However, our borough of Merton has other towns within its proximity and as a landlord, one must consider other towns to invest in. The main commercial centres in Merton are Mitcham, Morden and Wimbledon, of which Wimbledon is the largest.

An average property in Mitcham has seen an increase in property values by around £47,460 over the last two years, taking an average property up in value by 18.6% up to £302,600. You have to go to Morden where they have seen some impressive property value increases. Morden property values have risen by 19% taking an average property here from £300,330 to £359,200 over the same time frame.

I find it interesting that three places - Wimbledon, Mitcham and Morden all within one borough can experience such variations in property prices. (From 14.5% in Wimbledon all the way through to 19% in Mordon. With average rents steadily rising by 1% to 2% a year and with continuing troubles for first time buyers raising the £30,000 + for the deposit and fees, I can only see a greater demand for rental properties in Wimbledon which will mean more people will continue to buy property for Buy to Let, and where there is greater demand, the price tends to go up. This however, is only my opinion.  If you would like to talk about any matter relating to property in Wimbledon, feel free to contact me on 020 8947 6613 or email me direct on sam@masonandco.co.uk.

4.8% Return On This Buy To Let Investment

Good afternoon property hunters, 

Looking through the market today, I came across this lovely one bedroom flat on University Road in Colliers Wood and its in good condition. Inside offers in a contemporary style with neutral decor, fitted kitchen and wooden flooring throughout.

This flat is nestled in between Colliers Wood and Tooting Broadway stations, ideal for commuters and it's on the market with Ellisons for £299,950. It benefits from share of freehold and comes with no onward chain, making it a fantastic buy to let investment opportunity!

You could potentially get a 4.8% annual return. This is based on achieving a rental figure in the region of £1,200 per calendar month.

Click on the link below to get more information.

http://www.zoopla.co.uk/for-sale/details/35627016

Wimbledon Property Market – Good Yields?

With summer just around the corner and the Wimbledon Champions descending upon our town, many landlords who have available properties over the Wimbledon fortnight will utilize the opportunity to achieve strong rental yield and profit from the event.

So what kind of yields can you achieve from Wimbledon properties? For those who are new to the investment property game, the yield is the yearly rent from a property reflected as a percentage of the value of the property.

Starting at the lower end of the market, a small flat, depending on accommodation type can range in price between £250,000 and £350,000, whilst the rents achieved are in the early £900's and early £1,000's giving yields in the in the region of 3% to 4%. Considering property values in Wimbledon has risen nearly 14.5% in the last two years, that's an overall return of 18.5%.

A three bedroom property can be purchased for around £540,000 and they achieve rents in the region of £2,000 to £2,500 per month. This gives yields of around 5%. So surely the bigger property would be a better investment? Other factors must also be taken into account when buying property to rent out. Properties that require less maintenance will have less void periods and it will sell quicker when there is the need to sell the property.

This table illustrates a snapshot of property price ranges

compared to rent ranges of similar sized properties and the

gross yields that would result in Wimbledon

Property Type	Value Low High		Rent Low High		Yields Low High
Studios	￡229,950	￡250,000	￡850.00	￡1,150	3%	5.5%
1 Bed Flat	￡250,000	￡499,500	￡900.00	￡2,600	4%	6%
2 Bed Flat	￡285,000	￡995,000	￡1,150	￡3,034	4%	3.6%
2 Bed House	￡324,950	￡995,000	￡1,400	￡3,800	5%	4.5%
3 Bed Flat	￡380,000	￡1,100,000	￡1,530	￡5,850	4.8%	6%
3 Bed House	￡380,500	￡1,995,000	￡1,650	￡6,500	5%	3.9%
4 Bed	￡650,000	￡3,300,000	￡2,000	￡11,000	3.6%	4%
5 Bed	￡765,000	￡4,150,000	￡2,995	￡16,333	4.6%	4.7%

However, you must remember that every landlord's tax and interest rates are different and investing in property is a risk and values can go up as well as down, so research is essential when committing in property. Balancing capital growth and yields are important but they are not the only factors when investing in property.

Whether you are a landlord of or someone thinking of investing in rental market for the first time in Wimbledon please feel free to ask my opinion if it would make a good buy to let investment or just pick up the phone on 020 89476613 or email me on sam@masonandco.co.uk. I don’t sell property, but I can look at the whole the property market and as it’s in my interest to give you the best advice, as you might just ask me to manage it for you.

Buy- To- Let Deal Of The Day!

Good afternoon property hunters,

I have just come across this lovely little gem that I want to share with you. This two bedroom ground floor maisonette flat situated in a popular cul-de-sac in Raynes Park is on the market with Your Move for £375,000.

It comes with a private garden, an open plan living area, fitted kitchen and neutral decor throughout making this property perfect for an investment opportunity.

Properties like this are seemingly popular with the excellent transport links into Wimbledon and the City and would make a perfect home for commuters, sharers and families alike.

This flat could potentially give you a yield of 4%. This is based on achieving a rental figure of £1,400 per calendar month and this property has no onward chain.

You can click on the link below to get more information and get in touch with the agent because this property won't stay on the market for long.

http://www.zoopla.co.uk/for-sale/details/37087366

SW20 – The Place To Buy A Property?

I always tell our Landlords that knowing your market place is so important when making a decision on what (or not) to buy when investing in Wimbledon Property.

After a conversation with a Landlord who lives in the 'Apostles' in Raynes Park, one of the elite places to live in. She was considering another buy-to-let investment particularly in the SW20 area and wanted some advice.

Last week I looked at SW19 as a whole. Today I want to look at the SW20 to make a comparison and present Landlords with potential investment opportunities. In the south of the railway of the SW20 postcode district lies Raynes Park, Wimbledon Chase, West Barnes and Canon Hill. There are 188 streets in the SW20 postcode with 11,629 households and 2,807 of those properties are privately rented making 24% of the housing stock in the private rental sector compared to 32.5% of SW19.

We found that the average property in SW20 is worth £649,500 which one would expect is lower than SW19 average value of £746,000. Interestingly enough, the prices achieved in SW20 over the last twelve months are 8.63% up on the previous year and 21% up on those achieved in 2012 where an average house price was £537,300.

Nonetheless, the properties do sell well, in actual fact 1,397 of those properties have changed hands since 2012. We are also seeing a higher percentage of tenants deciding to stay longer with longer terms of fixed tenancies in their properties and the request for properties that are in good areas are increasing. With such high demand from tenants and homeowners, this could also be a great area to purchase your next buy-to-let investment.

If you are a landlord or thinking of becoming one and thinking of a buy-to-let investment in the near future, I am always happy to give my advice and offer you an objective opinion. Please feel free to email me at sam@masonandco.co.uk

5% Yield On This Stunning One Bedroom Flat in Colliers Wood

As the month comes to an end, here is another little number that I would like to share with you!

This one bedroom flat is situated in a quiet cul-de-sac in Colliers Wood just moments away from the northern line and the Sava Centre, making it an ideal property for commuters.

Looking inside, it has recently been redecorated with a contemporary kitchen, a modern kitchen and beautiful decor and it is on the market with Foxtons for £265,000.

This flat could achieve a rent in the region of £1,200 per calender month, giving you an annual return of 5%! Flats like these are very popular with tenants and will go quickly, so get in touch with the agent to view.

http://www.zoopla.co.uk/for-sale/details/37009368

What type of property performs the best in Wimbledon?

Wimbledon is a popular suburban district of London attracting all types of property hunters in our town. Fortunately, just about every preference of accommodation can be catered for. From highly desirable detached houses to late Victorian terraced house and modern luxury flats and apartments dotted around the town.

A good guide to judge what types of property performs the best is knowing what types are actually selling. Let us look at what has happened over the last twelve months in particular, this will give us a good indication of the saleability of the different types of property in SW19.

Between May 2014 and May 2015, 1,090 of the 35,374 properties actually sold in Wimbledon SW19.  The best performing type of property were flats and apartments with an average sale price of £413,000. 586 flats and apartments changed hands in the last year, representing 53.8% of the property sold. When you consider 50% of the housing stock in SW19 are flats and apartments, this means they have done very well.

In second are terraced properties, representing 28.6% of the sales. Nonetheless, terraced houses only but respectably make up 31% of the property in Wimbledon. Once again, good news for all terraced house owners.

Of the 3,995 semi-detached houses in Wimbledon, 82 properties changed hands in the last year. Whilst 31% of the housing stock are semi-detached houses, they only represented 7.5% of the sales.

However, its the detached properties that performed the worst in the last year. Out of 1,588 detached houses, only 35 properties changed hands, representing 3% of the sales. On the other hand, detached houses only make up 4.49% of the housing stock in Wimbledon.

What does this mean for property owners in Wimbledon? It means that there is a fairly even property market in Wimbledon. Most homeowners start with a terraced house, then aspire to move to semi-detached houses. If finances allow, they move to a detached property. With half of Wimbledon properties being flats and apartments and the majority of them may have been purchased by landlords to rent out to tenants. As a result, this is why these sales are a higher percentage compared to the other property types.

Stunning 'Apostles' two bedroom flat with a yield of 4.9%

Good afternoon all...just came across this stunning flat located in the very desirable 'Apostles' area of Raynes Park. This two bedroom split-level Edwardian conversion flat is on the market with Ellisons for £385,000.

Looking inside, this flat has been beautifully redecorated with neutral decor, a contemporary kitchen and bathroom and has an open plan living area With good local schools and Wimbledon Chase and Raynes Park stations just a stone throw away, this property would make an ideal investment property for families, commuters and sharers.

Based on achieving a rental figure in the region of £1,600 pcm, you could potentially generate an annual return of 4.9%!

http://www.zoopla.co.uk/for-sale/details/36975775

Wimbledon – Good time to buy property?

Following last month's article, I had an interesting conversation with someone who was thinking of buying his first buy-to-let property and he wanted my thoughts on the market and whether it was a good time to invest.

He was particularly worried with all the news headlines about the booming London house prices that there wouldn't be any demand from tenants. One of the best piece of advice I can give to those looking to invest in property is a simple trick of the trade. You can judge the affordability of an area property market (and thus how much demand there could be) by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable the property is.

When we put this to the test, we found that Wimbledon currently has an average property value of around £742,000. According to the Office of National Statistics, the average salary in Wimbledon is estimated at £39,685. This is a ratio of 18 to 1. Most lenders will only lend up to 4.5 times of the income, so to buy an average house in Wimbledon, a first time buyer would need to be on a salary in the late £130,000's. They would still need to take into account buying fees and raising the 5% deposit which then will be in the order of £31,000+

Tenants inability to raise that sort of money for the deposit is driving demand for rental properties. Whether you are a landlord with a portfolio or someone thinking of investing in the rental market for the first time, and If you would like some advice about buying to let, please feel free to email me at sam@masonandco.co.uk.

3 bedroom flat in Raynes Park with a 5% yield!

I have just come across this great investment opportunity situated moments from Wimbledon Chase, Raynes Park stations and good local schools making it a popular location for commuters, shares and families alike.

This three bedroom flat has recently been refurbished and redecorated with a modern fitted kitchen, neutral decor and wooden floors throughout. It is on the market with C James & Co for £374,999 which seems quite reasonable. Achievable rent could be in the region of £1,700 giving you a yield of 5%!

Viewings are highly recommendable because flats like this does not stay on the market for very long.

http://www.zoopla.co.uk/for-sale/details/36813310

Wimbledon SW19 Property – Do you know the Facts & Figures?

One of the final portions of census data has recently been released by the Government, and for those of you who like to look at data, it is a treasure trove of information. Information is so important when making decisions on what (or not) to buy when investing in property. Such information allows us to weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.

Therefore, I looked at Wimbledon SW19 as whole. There are over 83,000 people living in 32,895 properties, but it is the home ownership percentages that really got me interested. As it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties. In Wimbledon SW19, of those 32,895 households, 24% own their property without a mortgage and additional 29.5%  of households own their property with a mortgage.

However, the surprising thing was the high level of private rented properties. Normally, when you have high percentages of home ownership, the renting is low. Quite the opposite in this area where 32.5% (or to be exact 10,713 households) are in the private rented sector. With such excellent demand from homeowners and tenants, this could be the right area to purchase your next buy to let investment, especially some of the one bedroom flats are achieving yields in the 3% to 4% region and Wimbledon property values always perform well over the long term (as you recall last month, we said that Wimbledon property values had risen by 20.5% in the last two years).

If you are a landlord new or old and considering buying a property for investment in the near future, I am certainly more than happy to give my considered opinion on what you want from your investment. 

Perfect first time investment opportunity!

http://www.rightmove.co.uk/property-for-sale/property-34591974.html

Just came across this little gem which has just come on the market on Derwent Road. Located just moments away from Raynes Park Station and local shops, this lovely ground floor maisonette would make a perfect first time investment property. It is on the market with Haart and the guide price is £270.000 with a potential to generate an annual return of around 5%. This is based on achieving a rental figure in the region of £1,250 pcm which is pretty good.

Viewings for this property is held on 16th of May so get down to the agents to book a viewing as this kind of property will not be on the market for very long. Click on the link to see the details.

If you like to discuss about the property market and would like some advice, please feel free to email me at sam@masonandco.co.uk

Colliers Wood - Deal of the Day!

Good morning property hunters. Here is my pick for today, it is a two double bedroom split level maisonette located in a quiet cul-de-sac and a short walking distance to northern line tube stations and the Tandem Centre.

This property is on the market with our friends at Urban for just £315,000 and would make a perfect first time investment. Rentals on this property could achieve £1400 per calendar month, that's a yield of 5%. Not bad for starters.

For full details, click on the link below.

http://www.zoopla.co.uk/for-sale/details/36722112

 

                             

                             

                             

                             

4% return on this stunning two bedroom flat

Having a look this afternoon and spotted this flat on the market in a cul-de-sac near Raynes Park Station.

This two bedroom flat would make a great investment for couples, sharers or families. It has been beautifully refurbished throughout with neutral decor, fitted kitchen and has a private garden at the back. It is on the market with Goodfellows for £350,000 and achievable rent of £1,400 giving you an annual return of 4%.

I would suggest to contact the agent to book a viewing as these properties are always in demand.

You can click on the link to see the details.

http://www.zoopla.co.uk/for-sale/details/36741007