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