Boshams Top 10 Most Expensive Streets

As we have recently been discussing the Bosham property market, I thought that you might be interested in finding out which are the most expensive streets in the PO18 postcode sector:

Rank	Street	Average Price	Transactions
1	Bosham Hoe	£1,819,840	38
2	Lower Hone Lane	1,712,713	3
3	Shore Road	£1,313,217	37
4	Harbour Road	£1,297,501	4
5	Smugglers Lane	£1,281,257	36
6	Windmill Field	£1,266,900	5
7	Steels Lane	£1,139,784	4
8	Church Meadow	£1,078,652	11
9	Cheesemans Lane	£1,066,202	9
10	Five Acres Close	£1,056,825	4

The Bosham Buy-To-Let Market

You may recall that last week we discussed a two bedroom apartment in Old Bosham as our buy-to-let 'deal of the day'. As we thought, the property didn't hang around for long and a sale was agreed within 48 hours of marketing! This provoked a discussion in our office as to why Bosham is such a popular and desirable place to live and invest in buy-to-let property.

Firstly, we looked at the available housing stock in Bosham. We found that out of 6,650 properties in the PO18 postcode sector, only 7.24% were apartments. Compare this to the national average of 17.42%. This implies that apartments in Bosham are few and far between. One of the most common demographics of tenant we have on our books are professional singles/couples looking for one or two bedroom properties - put simply, demand outweighs supply!

We also looked at the average house price in Bosham. The average price paid for apartments is currently £222,300, which has seen an increase of over £47,500 (or 27.28%) over the last 5 years. Compare this to the similar sized village of Tangmere to the east of Chichester which has seen a far more modest increase of just over 13% for the same profile of property. 

For those of you who are not too familiar with the local area, Bosham also boasts it's own railway station and is close to the A259 which runs parallel to the A27 dual carriageway, ideal for tenants who need to commute into Chichester, Portsmouth or beyond.

The above factors are key indicators that all landlords should be taking into account when considering any purchase.

As always, if you are thinking of investing in the local buy-to-let market please do give myself or our team a call on 01243 887887 for free, no pressure advice.

Buy-to-let Deal of the Day - Character Property offering 4.6% yield and 20% capital growth!

When speaking to local landlords in Chichester the topic of what is considered to be a "good" rental yield is often comes up in conversation. 

Those of you who are familiar with the local BTL market will know that yields in our larger neighboring cities, such as Portsmouth, Brighton and Southampton can often warrant double-figure returns. Chichester, being an affluent Cathedral City brings with it a never diminishing demand for housing, thus local investment landlords often have a long-term strategy in mind to maximise their capital growth over time.

There are, however, plenty of opportunities out there that give the best of both worlds - a healthy gross yield plus strong capital growth.

We have just taken onto the Sales market a two bedroom ground floor apartment in Old Bosham. The flat has always rented well for £875-895pcm attracting single professionals as well as professional sharers (Rolls Royce, St Richards hospital staff, for example).

On the market at £235,000, a purchaser could expect to see a return of 4.6% based on the higher rental estimate - very good indeed locally.

Further still, as the property is situated within a converted Vicarage, the apartment oozes character which will always appeal when considering selling the property in future. Prices in Walton Lane have increased by almost 20% over the last 5 years, making, in my opinion, a very attractive buy-to-let proposition.

For more information on this particular property please give me a call on 01243 887887, email matt.berry@martinco.com or visit http://www.rightmove.co.uk/property-for-sale/property-40015452.html

The Future of Buy-To-Let Investment

I ran into one of our landlords last week, who owns quite a few properties in Chichester and we got talking about the recent changes in taxation for landlords and how this was going to affect him. There have been lots of reports about this and a lot of landlords are worrying about how this is going to impact their investment, so I thought I would have a look into it and outline some of the facts.

So, let us start by looking at what is going to be changing. The first change is stamp duty. Currently you pay no stamp duty on the first £125,000. You then pay 2% between £125,000 - £250,000, 5% between £250,000 - £925,000, 10% above £925,000 up to £1.5m and then 12% above £1.5m. The proposed changes mean that as of April 2016, if a landlord buys a property for buy-to-let, their stamp duty bill will face a 3% surcharge.

In 2017, Landlords’ tax relief is going to be affected as they will no longer be able to deduct mortgage interest from their rental income before it is assessed for tax, but will instead get a flat rate of 20% tax credit. This means that those paying a higher tax rate will lose half of their relief, while some others will be moved into this bracket and will likely see their tax bill soar.

Landlords are also facing a change to the way they pay tax when they sell their buy-to-let properties. At present, capital gains isn’t due until the end of the tax year, but from April 2019 landlords will have to pay their capital gains bill within 30 days of selling the property.

A lot of landlords have asked, why have these changes been made? The reports say that it is a way of trying to slow down buy-to-let landlords snapping up affordable property, freeing them up for first time buyers. The Council of Mortgage Lenders revealed in November 2015 that the number of buy-to-let mortgages granted had increased by 36% in the previous 12 months, whereas mortgages granted to first time buyers was up by just 10%.

So what does this mean for the future of buy-to-let? I believe that we will see a few landlords initially sell up that can’t be bothered with the hassle of it all, but after the initial huffing and puffing, it will all settle down. With the stamp duty changes, landlords will end up factoring this in to their initial investment and end up hanging on to the property for a little bit longer to re-coop some more rental income and in turn maximise their capital growth when it comes to selling.

Some banks have accounts whereby they are giving cashback on their direct debits and/or on “balances between” which may help with the finances, might be worth investigating this with your bank to see if it is an option.

In summary, whilst these changes will impact how buy-to-let works for landlords and for those with properties currently let out, there is an element of recalculating and re-jigging finances. For new landlords it will become ‘the norm’ and will be something that potential landlords will factor into their investment when doing their calculations. The best bet is to have a chat with a Financial Advisor as they will be able to point you in the right direction when it comes to tax.

Buy-to-Let Deal of the Day - 4% Gross Yield Close To High Schools

I was interested to hear last week that the average first time buyer now earns over £50,000 per year and has to provide a deposit in the region of £30,000 to get onto the housing ladder.

It is no surprise then that many people are now considering renting as a long term alternative to buying. This maturing tenant market means that good quality family homes to close to local schools are always in demand. 

Looking on Rightmove this morning I noticed this charming three bedroom cottage on Grove Road (just off Kingsham Road, near the High Schools).

http://www.rightmove.co.uk/property-for-sale/property-39400887.html 

On the market with Cubitt & West estate agents at offers over £300,000, the property has been extended into the loft space to create three decent sized bedrooms, ideal for a growing family and looks in lovely condition judging by the photographs.

Rental values for three bedroom houses in Grove Road have been known to reach £1125pcm however I feel a more conservative £995pcm is reasonable for this particular property.

A purchase at the £300k mark with a rent of £995pcm would return a healthy 4% yield. Sale prices in Grove Road are also rising at an encouraging rate of over 18% over the last 5 years, meaning that a property of this ilk could make a savvy buy-to-let investment.

Rush to purchase buy-to-lets keeping housing market buoyant says RICS

Landlords trying to beat Chancellor George Osborne’s stamp duty surcharge deadline are behind the latest upbeat assessment of the housing market from the Royal Institution of Chartered Surveyors. 

In its latest survey of residential members it says demand in December flouted the usual seasonal slowdown and rose to a three-month high after the government announcement that a three per cent duty surcharge would be imposed on April 1. 

In one region, the north west, 40 per cent of chartered surveyors reported a rise in new buyer enquiries in December, up from 19 per cent in November.

RICS says high prices across most market sectors continues to be fuelled by a relative shortage of properties but new instructions to sell homes rose for the first time since January last year.

Simon Rubinsohn, chief economist at the RICS, says a further increase in activity is likely before the April stamp duty deadline. 

In the longer term, he believes prices in London, the South East and East Anglia would rise by a further five per cent over each of the next five years.

Article courtesy of Estate Agent Today

What can we expect from the Property Market in 2016?

Firstly, Happy New Year to you all. I hope that you had an enjoyable Christmas.

One question I was asked a few times over the festive period was whether the property market will continue to grow in 2016. In my opinion, the signs are good.

Halifax forecasts that house prices will grow between 4% to 6% this year, which is slightly slower than 2015, which saw a 9.7% annual growth. This steady and continued growth is fueled by lack of supply, shortage of new build developments, and indeed a homeowners fear that they may not be able to secure, or indeed afford, upgraded accommodation.

Buy-to-let continues to go from strength to strength, with lending in this market at a post-recession high. The main drivers for growth in the sector remain in place; restricted housing supply, high net migration, limited affordability and restrictions on lending.

In November, The Chancellor announced in his Autumn Statement that buy-to-let purchasers would face an additional 3% surcharge on each band of their stamp duty land tax bill, beginning in April this year. Some within the property industry have described this as a “catastrophe”, however in reality, I believe that landlords will simply factorise their additional costs into their offer price. Buy-to-let purchaser’s ability to complete quick transactions, with typically larger cash injections, and less lending restrictions, means that there is a better chance of a sale completing, thus always making this profile of buyer more attractive to a seller.

With these stamp duty changes on the horizon, we expect to see short-term benefits to the buy-to-let market, as prospective investors look to bring forward their purchases to beat the April deadline.

As a company, Martin & Co have quickly established themselves as the lettings specialist in the Chichester area, and we are proud to announce that we have now entered the property sales market. The reason for this recent addition is largely down to area demand and repeated requests from our current landlords to offer this service to either sell their rental properties and/or re-invest or expand their portfolios locally.

If you are considering selling your property this year, please come and talk to us in the first instance, as we have an active ever-growing database of landlords actively looking to invest.

Wishing you a very happy and prosperous New Year.