SAY NO TO GEORGE

You may have heard about the Chancellor’s Summer Budget Proposal where he aims to restrict mortgage interest relief for Private Landlords. It’s a bit of a mouthful we know, but what is important are the consequences of this change and how it affects you, your family, the people you deal with and the economy of the country as a whole.

The Chancellor says that what a Landlord is paying for the interest part of a monthly mortgage should not be allowed as a business cost. He calls it a tax break but in most cases it is a Landlord’s biggest expense on a property and is most definitely a business cost.

It’s a bit like the Chancellor deciding that a baker can’t offset the cost of his flour against his income. His flour is most definitely a business cost and is rightly allowed as such.

He says that mortgage interest rate relief was abolished for homeowners years ago so wants to ‘level the playing field’. However he is forgetting that homeowners are not subject to Capital Gains Tax when they sell a property (but Landlords are) and private rented property provides homes for nearly 4 million people and Landlords pay tax on the rental profit they make.

It’s not just us this saying this. Many experts, including the Institute of Fiscal Studies say the Chancellor’s ‘line of argument is plain wrong’.

If you want to have your say and vote against Mr Osborne’s proposed changes please sign the   petition.

Tenants-the unknown varaiable?

Property is a hard structure. It’s not emotional. It will stand for 30 years or more come rain and shine and still perform for you providing you service it and look after it.  Repairs are quantifiable and most can be planned for but your Tenants are an unknown.

They are human and not so fixable as a boiler or a dripping tap. In the 30 years they get upset / get drunk / lose jobs / split up from partners / become violent / get depressed.
They may wear a suit and speak well when you first meet them. That is because they want your house. But you literally only scratch the service when you meet them and on that basis you entrust them to live in your £100,000 asset AND you also trust them to pay you maybe 7K a year in rent to do so. Scary.

This is where a good agency comes in.  A good agency will do due diligence and checks and discuss potential tenants with you.  They will periodically inspect your property to make sure that there are no issues that your tenants have forgotten to tell you.  They will find out if a tenant has a bad credit file or has mistreated a house before.  Martin and Co even monitor tenant’s credit files as the tenancy continues so that you are aware of potential problems earlier. They will have condition reports on file on the property when your tenants move in and out.  Get reliable tenants, cut the voids and maximise your return-come to Martin and Co.!!

Martin and Co will cut your stress when renting out your property. 

Two conflicting headlines this week!

Two conflicting headlines this week!

House prices have shot up to record highs after the Conservative election victory triggered a rush to buy in an overcrowded market. Telegraph16/06

The UK property market slammed into a brick wall in April, with annual house price growth suffering its biggest slowdown for a decade. Telegraph 17/06

What are we supposed to make of this?  Statistics of course can be used to prove all sorts of things to all men but what do these conflicting statements mean to us in Weymouth and Dorchester?  Because the London market is so instant and the sums so large it does skew the figures dramatically and is not a true reflection of what is happening in other parts of the country.   Moral of the story:  take all national statistics with a pinch of salt!!!  A solution is at hand though-

Martin and Co have produced a Market Review and although not Dorset based it is ‘Southern UK’ based so is relevant to our area much more so than the reports put out in the national press.

The report contains in-depth data and analysis of the local region in terms of buy-to-let and the private rental sector.  Interesting statistics and figures from our national marketing report include the fact that the return from a buy-to-let investment can reach as high as 9.0% in our area. Furthermore, in six out of nine Martin & Co regions, the returns from net rental income exceeded annual income from taking an annuity.

The hope is that this regional report will give Martin & Co offices and customers a real insight into how their local property market is behaving.

If you would like a copy please drop into the office in St Thomas Street and pick one up or go to our blog at  http://macweymouth.blogspot.co.uk/

Helping you make up your mind about BTL as an investment

PRESS RELEASE

FOR IMMEDIATE RELEASE/ 15/06/2015

                                   

Martin & Co publish regional Marketing Intelligence reports

Report confirms the net total return that can be made from a buy-to-let investment in the Southern England region can reach 9.0%

                             

Martin & Co [office name] have published their 2015 Marketing Intelligence Report for the South of England, as part of their national campaign to compare property with other types of investment.

The report contains in-depth data and analysis of the local region in terms of buy-to-let and the private rental sector.

For example, a buy-to-let investment of £100,000 in the Southern England region in 2005 would be worth £134,013 today. Furthermore, annual rental income can reach £4,700, which outperforms income from an annuity (£4,500) by 2%. This does not take into account the potential for capital growth, which is consistently on the up since the end of the recession.

The average increase in the cost of property in the region over the last ten years was 34%, with a rent increase of 8.3% in the South East and 6.4% in the South West since 2011.

The average rent tenants are willing to pay in the region is £960pcm.

It is figures like these that support Martin & Co’s belief that buy-to-let is an increasingly viable method of investment, especially following April 2015’s pension reforms.

The regional marketing reports come in response to a national report compiled by Martin & Co last year.

Interesting statistics and figures from our national marketing report include the fact that the return from a buy-to-let investment can reach as high as 13.2%. Furthermore, in six out of nine Martin & Co regions, the returns from net rental income exceeded annual income from taking an annuity.

The hope is that this regional report will give Martin & Co offices and customers a real insight into how their local property market is behaving.

‘Philip Wakefield, owner at Martin and Co Weymouth, said he hopes that this report, together with other material available from the office, will together help landlords come to informed buying decisions when looking for their next investment’

These statistics are available as part of the national marketing report, and copies of the regional report can be requested by getting in contact with your local Martin & Co office, of which there are 24 in the Southern England region.

Landlords - Are you getting ripped off??

Landlords - Are you getting ripped off??

A large major London agent is facing a group claim against it for charging inflated amounts for run of the mill maintenance jobs.  Landlords have grouped together to bring the claim against Foxtons , one of the major Lettings agents in London.

How does that affect us down in Weymouth, Portland and Dorchester?  Well in fact it is quite common practice among agents to add not inconsiderable amounts to contractors’ bills when they are charged out to Landlords.  Even if Landlords have sight of the original invoice this will not give the game away as contractors are contracted to give ‘cash backs’ to the agents.

If the contractor is VAT registered it can mean that you the Landlord are paying in excess of 50% more for simple maintenance jobs than is necessary.

My message here is simple, Martin and Co, Weymouth never have or will add any service charge to contractors’ bills.  The price you pay is what the contractor gets.

Quite simply our intention is to keep costs to Landlords as low as possible whilst keeping your property in tip top condition and having happy tenants.

Next time you speak to your agent ask them how much they add to your contractors bills?? Then come and speak to us.

This is the link to the original article:  

http://www.propertyindustryeye.com/landlord-tells-foxtons-on-fees-you-picked-the-wrong-one/

Buy to Let, Madam!

This week I would like to talk about a property we have taken on to sell that offers a very good investment opportunity to a buy to let investor.  

A two bedroom flat, around 6 years old, on offer at £135,000.00 that would rent out at £650 per month and show a 5.77% return if you purchased for cash.   

It has  allocated parking and with the current demand for good quality flats being very high this will not hang around for long   (to rent or to buy!!) 

The perfect armchair investment and even if you put down a 25% deposit and borrowed the remainder on a buy to let mortgage (currently available at from 2.49%) you could expect to make nearly 10% return on investment after taking into account all expenses.   Please refer to our Buy to Let spreadsheet available from our office to work out figures for different properties.
Call us to arrange a viewing.

How can you find a good property deal in Weymouth , Portland or Dorchester?

How can you find a good property deal in Weymouth , Portland or Dorchester?

I was talking to a one of our landlords the other day, when he explained that there were no property bargains for him to buy in Weymouth or Dorchester. 

 

Now, none of us can look at a property and say ‘thats a bargain’ without doing some research so  I looked at some properties that have actually ‘been’ bargains for their new owners and conversely cost their original owners quite a bit of cash.

A flat in Oakbury Drive sold for £157k in December 2008.  In Jan 2015 it sold for £132k , a nearly 16% drop in price over 7 years!  Another at Nautica in St Albans Street, Weymouth has just sold for £115k and originally cost the owner £130k in March 2010 nearly 12 % higher.

Similarly, a three bed house in Chickerell Road has just sold for £159k, £10k less than it was bought for in 2011.

The price of property varies on whether you have a motivated seller or canny buyer and it is still possible to pick up a bargain wherever you are.  Only research can tell you how much of a bargain it is.

Whether you are a Landlord of ours or not, drop by our offices at the top of St Thomas Street if you would like any advice or help finding out this kind of information.