TOP SELLING TIPS 17

When selling your property, it is important that your Estate agent delivers impressive initial results with plenty of viewings followed by prompt and constructive feedback.

Such feedback is critical in the early stages of marketing as it helps you interpret the market’s response to your property from those most likely to buy it, i.e. those hot buyers who were offered the property first.

Whilst high viewing numbers are important, it is also crucial that these buyers are well qualified, with your agent keeping you fully informed about each buyer’s ability to proceed before they even view your property. This not only enhances security but also determines whether the buyer has sold, amount of deposit available, mortgage requirements, reason for moving, etc

Too many Agents take a lazy 'Shotgun' approach in the belief that if you throw enough Buyers at a Property, someone is bound to Want it ! Surely, as a Homeowner you would prefer a more targeted approach?

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2016 Property Predictions - Part 2

Part two of Predictions for the Property Market for this year

6. The Emergence of the Company Landlord

Setting up a Limited Company is a fairly simple and Inexpensive procedure. (Can be done online for £20). It has become a more attractive option to avoid the changes to Mortgage Interest Tax Relief. It was previously less attractive due to the restrictive nature of obtaining Finance (see Next Point) and the Potential issues with getting money back out of the Company (if needed). However I'm sure over the next few months we will see a number of creative solutions with firms offering competitive Accounting Solutions for Company Accounts

My I also be as bold to Suggest that groups of Landlords may get together to Form Companies owning their Property, making them Shareholders........

7. Increase in Company & HMO Finance Options

Lenders have a vested interest & a commitment to their shareholders to ensure that they do not lose out as a result of the changes to the BTL market which is expected to see significant numbers of less professional or more highly geared Landlords throwing in the towel (as per George Osborne's ultimate master plan of seeing the private rented sector controlled by a small number of institutions rather than thousands of individuals)

Such institutions will have seen many market changes and will have reacted accordingly to ensure the long term profitabilty of their business, and I see no reason why the changes being implemented in 2016 should be any different

8. Increase in attractiveness of 'Buy to Sell' - FLIP Deals

With increasingly slim pickings from single lets, many small and Individual Property Developers will look at other ways to profit from property. Flipping (buying poor quality or repossessed 'dumps', improving, then selling at a profit) is an established way of making short term profits

It tends to work best in buoyant, rising markets (as those Flipping benefit not only from the increase in value from the work they have done but the natural organic price increase during the time the work is undertaken) . This has always been a popular in the Past in Bedford and this may become increasingly so. 

9. Development Projects Will Provide Excellent Opportunities.

Whilst there is concern over the negative impact of the Stamp Duty and Mortgage Tax Relief changes on the BTL market, one positive is that the government has recently extended the permitted development of commercial property into residential use

Whilst quite a specialist field and one requiring more upfront investment than many strategies it should not be discounted as training/knowledge is widely available and finance may also be secured for the right opportunity, through traditional lenders or Joint Venture partnerships

I can see this happening more in Bedford, It has been fairly prevalent already and predict this trend, along with the conversion of disused pubs, to continue throughout 2016 and beyond . We have recently seen a number of Investors from London venturing out of the Capital, seeking opportunities along the various Commuter Corridors, of which Bedford is one.

10. Creative Methods Will Continue , the demand will need to be met.

The Government, bless them, will continue to try and clip the Wings of Entrepreneurs, if it perceives them as making money! It will demand its pound of Flesh to help finance its Budget deficit. The truth is, there is a need or demand from the Market. Granted there are still many people who aspire to owning their own home, but for many who don't want to put down roots, renting gives them the Flexibility that their lives and careers demand. Until such time that the State can fulfill this demand, then the Entrepreneurs amongst us will.

Whatever you may think about the forthcoming 'Landlord Bashing' measures, proactive investors will continue to profit from property through creative methods such as using Lease Options/Exchange With Delayed Completion, Joint Ventures/Private Finance, Bridging Finance etc

Any comments, observations, critique or otherwise can be aimed here:

2016 Property Predictions : Part 1

Afternoon all and a Happy New Year to everyone out there. With the turn of the Year it is often a time when many people take stock and reassess their Circumstances. Therefore It seems appropriate to stand back and try to look at the BIG Picture. The Property Market in Bedford is Fluid and Constantly changing, but Some trends can be picked if you try to read between the Lines. Therefore, here are a Number of Predictions for the New Year

1. Rents in 2016 - The only way is up!

How much they will rise is difficult to say.  The the Recent burdens placed on Landlords by George Osborne (stamp duty and mortgage interest relief changes) will see the supply of rental properties reduce as some Landlords exit the market (mainly those with high borrowing and the 'Dabblers'). Another factor to Consider is the Introduction 'Right to Rent'. This will place a further administrative burden and Cost on Landlords, failure to do so may result in a Fine of £3000. Combine these with increasing tenant demand and simple economics suggests that this will cause an increase in rents.

2.  The Bank Base Rate - not much change In 2016 

Okay, I'm no economist but there has been a bit of a economic recovery. Many households are now feeling that they are back to doing 'OK', and this has been based to some extent on the 0.5% base rate that has been enjoyed since 2009.

The Bank of England (BOE) meets monthly to discuss the Rate and whether to raise or lower it. The media love to speculate and have been saying for many of those years since that the Rate will rise soon, but the BOE never has. The fragility of the the UK Economy and its recovery, coupled with the Volatility in the World at large has meant the BOE is 'Risk Averse' Therefore I think its fairly safe to say that any change will be small if at all. 

One thing for certain though is that the Media will over hype any rise (no surprise there then!)


3.  MAD till MARCH, Post- Easter Blues

Now Investors, who invariably plan for the long term, shouldn't be put off too much by the 3% Stamp Duty Rise on Buy To Let purchases from April. However, it would clearly make sense for those investors in a position to buy quickly to do so before 1st April and avoid the tax. Therefore this is going to lead to an increased sense of Urgency for the first 2-3 months. It will have the effect of Bringing Sales Forward and thus lead to the Slump in Month 4.

The introduction of the 3% Stamp Duty will only serve to drive up Rents Further. Interestingly though, George has left a legal loophole in the new rules, because when it comes to selling up, they can offset purchase costs against any eventual capital gains tax, including stamp duty


4. Working Tenants sort after, As Housing Benefit Is Cut back

It is anticipated that at best Housing Benefit rates will be frozen or at worst they could be cut in 2016. This will mean tenants will be forced to 'top up' a larger amount or run into arrears

Combine this with the additional pressures facing Landlords as a result of the phasing in of mortgage tax relief changes and it may be that Housing Benefit tenants become an increasingly less attractive option, especially where margins are tightest on single lets


5. Change of Focus - increase in HMO's 

The 'Anti Landlord' measures introduced are aimed at hitting single let Landlords in the pocket. However, every challenge creates an equal or greater opportunity, it may just need a change in approach or focus to generate significantly greater returns. 

HMO's are perceived as being exclusively for students or generally being of low quality. Many feel that they won't work 'in their area'  However, if priced and presented right, this strategy, aimed at working tenants, will work in most areas with the exception of the more rural Parts of the Country.

It still remains a relatively niche sector of the market but take a quick look on www.spareroom.co.uk, and it shows that there is demand for this sort of accommodation and would predict that it will become more popular in Bedford going forward.  


Any Ideas? It would be be good to hear from your here

TOP SELLING TIPS 16

So you think you're ready? You've instructed an Agent, you've tidied up, 
The Agents been and Photographed everything needed and you are content with their Promotional Material. 


You are now on the Market and you wait with baited Breath........breathe, relax and smile!  Don't get uptight. If you've done everything possible to make your House look a million Bucks, chosen your Agent carefully, then it will sell.



How quickly just depends on the Buyers out there and the Market in general. Getting anxious wont help at all

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Is this the end for buy to let in Bedford

Is this the end for buy to let in Bedford?

Well George Osborne, in his Autumn statement a few months ago, caused landlords of Bedford’s 7,202 privately rented properties to ask whether buy to let is a viable investment option, when he announced that landlords, when buying another buy to let property from April 2016 will have to pay an additional 3% stamp duty on top of the standard rate. So for example, It means 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 (2016)  
Some say property in Bedford will be worth less because potential landlords will not be willing to pay as much for them, and if house builders or existing homeowners don't feel they are going to get as much for them , then there is less motivation to build / sell them?... and the person we can blame for this is George himself. Back in 2012, he choose to utilise the British housing market to kick start the UK economy, with  subsidies, Funding for Lending and Help to Buy.

However, whilst that helped the Tory’s get back into power in 2015, some say this impressive growth in the UK property market has been at the expense of pricing out youngsters wanting to buy their first home. Others say this is the straw that breaks the camel’s back as over the next four years Landlords will slowly lose the ability to offset all their mortgage interest against tax on rental income, after changes announced in the Summer Budget. At the moment, landlords can claim tax relief on buy to let mortgage monthly interest repayments at the top level of tax they pay (ie 40% or 45%). However, over the next four years this will reduced slowly to the basic rate of tax – currently 20%. Surely this is the end of Buy to Let in Bedford? Probably.. but before we all run to hills panicking .. let me give you another thought.

Stamp Duty rules were changed in December 2014. Before then, landlords were eagerly buying up properties under the ‘old slab style Stamp Duty’ system. For example, the stamp duty bill on that £285,000 property was lower on the old slab style duty (pre Dec 2014), at £8,550, yet it isn’t a million miles away from new £12,800 stamp duty bill. Interestingly though, George has left a legal loophole in the new rules, because when it comes to selling up, they can offset purchase costs against any eventual capital gains tax, including stamp duty. I believe that total returns from buy to let will continue to outpace other investments, such as the stock market, gilts, bonds and even pensions. Also, the best part about investing in property is that it is bricks and mortar. You can touch it, you can feel it, and it isn’t controlled by some City whiz kid in Canary Wharf .. the British understand property and that goes a long way! 

Buy to let has enough impetus behind it that prospective landlords will continue to buy even with a larger stamp duty bill. Bedford landlords will need to be savvy with what property they buy to ensure the extra stamp duty costs are mitigated.   Buying buy to let property is a long term venture. In the past, it didn’t matter what property you bought in Bedford or at what price – you would always make money. Now with these extra taxes, the adage of ‘any old Bedford house will make money’ has gone out the window.   You wouldn’t dream of investing in the stock market without at least looking in the newspapers or taking advice and opinion from others, so why would you take the same advice and opinion about buying a buy to let property in Bedford?

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