Bexley Borough Property News

In his autumn statement last week George Osborne announced that landlords will have to pay an additional 3% stamp duty on top of the standard rate when they buy another buy to let property from April 2016. This means, for example, that the stamp duty bill for a £285,000 buy to let home will rise from the current £4,250 to £12,800 from April next year. Landlords asked whether buy to let is still a viable investment option. Some say that property in Bexley Borough will be worth less because potential landlords will not be willing to pay as much, and that if builders or existing homeowners don't feel they are going to get as much for them there is less motivation to build or sell. The person to blame for this situation is George himself. Back in 2012, he chose to utilise the British housing market to kick-start the UK economy by providing subsidies, funding for lending and help to buy. While that helped the Tories get back into power in 2015, some say that this impressive gro...

Well, my Bexley Borough Property Blog reading friends, as seems to be all the rage with Jeremy Corbyn asking the PM questions emailed in to him at Prime Minster's Question Times, I too wish to answer a question emailed into me from a potential Bexleyheath landlord last week. Nice chap, lives near Danson Park, and, after having a coffee with him, it turns out, he works in IT, has a spare bit of cash (now the kids have flown the nest) and wanted to buy his first buy to let property.   His main question was ... Do I buy a freehold house or a leasehold flat in Bexleyheath? Most people will say freehold every time, because you own the land. However, it’s not as simple as that (it never would be would it!). The definitive answer though is to research what Bexleyheath tenants want in the area of Bexleyheath they want! The tenant is ultimately your customer, and, if they don't want to rent what you decide is best to buy, then you are not going to have a successful BTL investment...

I was having a chat with a Bexleyheath property investor the other day, when he asked if schools, especially primary schools, affected the local property market in terms of demand from buyers and tenants to a property.  Anecdotally, I have always known this to be true, a good school creates good demand and good demand does affect house prices.  So, I asked my colleagues on the front line, who take the phone calls from people putting themselves on our mailing list and they confirmed that most people cite location as their number one factor. After looking through our mailing list, it confirms there is a close correlation between the high demand areas of Bexleyheath and the close proximity to a good primary school.  Talking to my team in a recent morning meeting, they agreed many people would look to increase their budget quite significantly, whilst others would consider downgrading their property requirements to be close to a good primary school. Those of you...

Last week, one of our local landlords, who owns a small property portfolio, popped into our office on Bexley High Street for some advice as to where he should buy his next Buy to Let property. He already owns properties in Bexleyheath and Erith. In Bexleyheath, the average property price is around £332,500 and the average rent is around £1,360 per month. In Erith, the price of the average property is £255,630 and average rent is £1,080 per month. The annual yield in Bexleyheath is around 4.9% per year, and similarly, in Erith, he could achieve an annual yield of around 5.0%. We know the yields are very similar, so what should be considered next? I asked him what his long term goal was and he was very clear that he wanted to keep on building his portfolio of properties and buy a maximum number of units before retirement. I then asked what was more important to him, capital growth or rental yields? He explained that he had no plans to sell the properties but to have a healthy ...

One of our landlords asked if they should buy a 3 or 2 bed semi detached property to rent out to tenants. The average asking price of a 3 bed semi in Bexley is £373,000 today compared to £303,700 for a 2 bed semi. The 3 bed semi achieves an average rental price of £1,430 per month compared to £1,150 per month for a two bed semi. That’s a yield of 4.5% for the 2 bed against 4.6% for the 3 bed. So they are very similar but you might find that a 3 bed semi is slightly easier to rent out (less void periods) and will be easier to sell in the future. What about capital growth? According to the Halifax Price Index, Bexley has seen an increase in property values of 51.97% between 2009 and 2014. This means that, in 2009, the average price of a 3 bedroom semi would have been £245,440 and the 2 bed semi £199,840. Therefore, the initial extra investment of £45,600 for the 3 bed semi, gives you an extra £23,000 in capital growth and let’s not forget, that according to recent figures, you...

A landlord, who has owned a few properties on and around Bourne Road for the last 15 years or so, came in to our office to discuss the rise and fall of property prices on the street and how this has affected her yield over the years. In 1999, when she purchased her first property near Bourne Road, the average value of a terraced house on the street was £92,900 which had a sharp rise to £177,500 by 2005. This rise in value continued, with average values being £244,900 in 2007, which some would regard as the height of the property boom. Currently the average value of a terraced property on Bourne Road is around £284,400 which shows good recovery from the property market dip, post 2007. When she told me of the rents she had achieved on her properties, they seem to be performing well over the last decade. In 2004 the average rent was £775 per month and is now between £1,150 and £1,300, dependant on the property’s accommodation. Therefore, a landlord could expect an annual yield of...

Here's a property for those of you who want to start seeing returns on your investment without having the need to wait around for refurbishment works to be completed. It's a recently refurbished 2 bed flat on Eversley Avenue, Barnehurst and it also benefits from it's own private garden. With a potential rent of £900pcm you would be looking at a healthy yield of 6% and as it's in good order, with it's own private garden, it should be a very easy one to let. Jennings & Kent in Erith are the agents dealing with the sale. Here are the details on Rigtmove:  http://www.rightmove.co.uk/property-for-sale/property-47754655.html

Crossrail is coming to Abbeywood!!! I know this is old news, which most of you are aware of, and many investors have concentrated their efforts on investing in Abbeywood in anticipation of this; resulting in the Abbeywood property market soaring over the last couple of years – Zoopla estimates a 20.5% increase in property values in the last two years. However, this has also created a buzz elsewhere. With a new two-level station being built (planning to open its doors in 2017) and the faster link resulting in journey times across London being cut dramatically, Abbeywood is set to be driven into a different housing bracket. However, just like the ripple effect, Belvedere has also benefited from these new plans. Although Crossrail isn't coming to Belvedere, its railway station is just one stop from the  Abbeywood Crossrail Station and Zoopla have estimated that Belvedere has benefited from an increase of 17% in property values in the last two years. One trick of the trade i...

This 3 bedroom split level maisonette is an ideal Buy to Let investment. It's on with Anthony Martin with for £160,000. With potential rent of £1,000pcm you would be looking at a yield of 7.5%. Belvedere seems to be getting attention from Investors who may not be able to find a good deal in Abbeywood but would like to benefit from the new Cross Rail coming to the area. If you're interested then get in touch with Anthony Martin soon as I can't see this one being on the market for long. Here is the property on Rightmove:  http://www.rightmove.co.uk/property-for-sale/property-47433415.html

I recently had to advise one of our  Landlords who was considering investing in more buy to let properties, but was unsure about whether he should go for an investment that produced a better yield or capital growth. This is one of the most important considerations that you will make before investing; the balance between annual return/yield and the annual value increase/capital growth. He had been considering the Bexley Park development, which was built around 2002, and is perceived to be nice development to live in. I researched into Pinewood Place in Bexley Park. The average two bedroom flat there sells at around £225,000, with rental returns of around £1,000 per calendar month. I then looked at similar sized two bedroom flats on Frobisher Road in Erith which, when looking at yields, have outperformed those on Pinewood Place. This is because a two bedroom flat on Frobisher Road can be bought for around £130,000 and the achievable rents can be around £850 per calendar month. ...

Browsing through the portals and this property caught my eye. It’s a 3 bed terraced house in Crayford, which is in need of improvements, on for £220,000. I believe this property offers good potential for an investor looking to snap up a property below market value. Looking through the photos it's obvious the bathroom is dated and could do with replacing and also the Kitchen has seen better days. When replacing the kitchen, I would knock through the wall to the room on the side and create a much more desirable kitchen/diner and then partition the lounge creating a separate reception room. With the refurbishment cost kept below £10,000 (which I would say is reasonable), you’re looking at ending up with a 3 bedroom, freehold house costing you less than £230,000 – and if you were to re-value the property then I would expect it to come back at around £250,000; the way the market is moving I wouldn't be surprised if, after the refurbishment period, it was more than this. On...

How would you play? I was having a discussion with some local landlords about the property market in Bexley Borough, when the subject of 'risk against returns' arose. One of the landlords has a vast portfolio consisting of some houses of multiple occupancy and properties that he has converted into multiple units. Everyone plays the property game differently. Some landlords will accept a modest yield/ return on their investment but are not prepared to compromise the quality of tenant. Others are more interested in high returns and are willing to take a risk with regards to the quality of tenant. Before you start playing, it is advisable to have a game plan. For a low risk investment, there are properties in areas of Bexley that are perceived to be more desirable - such as The Old Mill development or on Thanet Road - where you may achieve an annual yield of around 4-6%. At the other end of the scale, you have flats in the Frobisher Road development in Erith, where you ...

A property which would not only be appealing to someone who is looking for one ready to be let out but with a potential yield of 7.19% it is an attractive investment for those who seek higher yields. It is a first floor, 2 bedroom flat being offered chain free for £134,500. It has recently been redecorated and carpeted. On top of that the communal areas on this development are also undergoing substantial improvements, which the seller has already paid for! Being in close proximity to local shops, schools, and bus routes; finding a suitable tenant should be no hassle and with the rental demand so high you could be looking at £900pcm in rent. Take into account the reasonable annual Service Charge of £900 and Ground Rent of £200 that would net the Landlord a healthy yield of 7.19%. It is on the market with Able Estates in Erith and if you’re interested then I wouldn't delay in giving them a call. Here is the property on Rightmove: http://www.rightmove.co.uk/property-for-sa...

Here is a good sized, freehold, 3 bedroom end of terrace property in the Northumberland Heath area. It is ideally located to local shops and schools and in my opinion makes a good buy to let investment. 3 bedroom end of terrace properties in the area should achieve £1,200pcm in rent and with the guide price set at £240,000 - £260,000 that would result in a rental yield of 5.54% if the property was purchased for £260,000. With high demand in the rental sector I can’t see this property being a difficult one to let, but I also believe it’s a property which will be snapped up pretty quick by a 'savvy' investor. If you’re interested then get in touch with Robinson Jackson in Northumberland Heath. Here is the property on Rightmove: http://www.rightmove.co.uk/property-for-sale/property-33510825.html

Bexley property v alues increase by  £715.38 per week Last week, a Landlord visited our office to discuss the rising property prices in Bexley. He owns a diverse portfolio of rental properties in and around the area, so it was interesting to compare the increase in property values. Upon doing some research, I discovered that, over the last 12 months, the average property value in Bexley has risen by £37,200, from £344,500 to £381,700. This is a remarkable increase of 10.8%, which equates to an average of £715.38 per week. When considering detached houses, the average increase is even greater at £52,400 or £1,007.69 per week. I then looked at the surrounding areas to find that, in Bexleyheath and Sidcup, the average increase is lower, at around £601.31 and £518.88 per week respectively. Nonetheless, this is still a very healthy increase. Compared to the national average rise of £353.90, this would suggest that the property market is performing very well in Bexley and the surr...

Here's a property that's been on the market since November 2014. The owners have had it on with Ward and Partners at an asking price of £140,000. The offer of a swift exchange and completion could put a buyer in a good negotiating position. Even if the property was purchased at the full asking price of £140,000, you would be looking to achieve around £850pcm in rent and with service charges around £1,200 per annum in this development (please confirm with Ward and Partners) that would net the Landlord a healthy yield of 6.43%. But like I say, with the property being on the market for some time (understandably due to the slow Christmas Period), I believe there might be room for negotiation on the asking price which would make the net yield even higher. If you’re interested then give Ward and Partners in Barnehurst a call. Here are full details of the property on Rightmove: http://www.rightmove.co.uk/property-for-sale/property-45882038.html?premiumA=true ...

You've got to love these Freehold properties which, in my opinion, offer such good value for money. This one is being marketed by Robinson Jackson in Bexley for £249,995 and will surely be snapped up quick. It's a 2 bedroom terraced house, close to good schools and Albany Park Railway Station. With a rental value of £1,100pcm you’re looking at a respectable yield of 5.28%. With 2 bed leasehold flats going for around £250,000 these days in the area, this is definitely worth a look. Check it out on Rightmove: http://www.rightmove.co.uk/property-for-sale/property-33360105.html

Here's one that would interest those of you who would like to invest in a straightforward, hassle free, buy to let. It's well located within the heart of Bexley Village with the added benefit of being within a gated development. It’s a recent build and is situated close to the local bars, restaurants and shops in the village and is only a few minutes’ walk from Bexley Train Station – making it an ideal place to be for commuters into London. It also has the added bonus of having an allocated parking space. It’s currently on the market with Village Estates with an asking price of £229,995. I can’t see there being any delay in finding a good tenant willing to pay up to £1,000pcm for this property. This would give you a rental yield of 5.22%, however i recommend you find out what the annual service charge would be as that would have an impact on this figure. Still, a good investment in an ever popular location with hassle free letting. Give Village Estates a call and take a...