To improve or to move? That is the question, but what to do?

Posted on Monday, 1st August 2011 by Centrick Property

While the property market is not as buoyant as in recent years, homeowners are left with a choice. Do they stay put and make improvements with the aim of enhancing the value of the property, or do they sell up now?

In areas where residential home sales have been lower than other regions, there has been a higher percentage of vendors electing to make improvements on their current home, rather than to put their home on the market.

Not only can improvements increase a property’s value were you to sell in the future, but it also arrests any potential fall in price were markets to take a further turn for the worst.

If you decide to make improvements and ride the current storm, always bear in mind, that adding space is the most effective way to enhance the value of your house. Therefore, an extension or a loft conversion should be considered. People always like a spacious kitchen, and it makes sense to make use of any redundant attic space, by turning into a living area.

But keep in mind, that not every action will be met with an increase in value when it comes to your home. Building a swimming pool as an example, will cost a lot and will result in only a minimal increase in value.

Knowing your target audience is key. For instance, if you are targeting families with young children, do not overdevelop the house at the cost of a decent sized garden. You may turn prospective buyers away.

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Landlords: Your agent must get you the right tenants: Your income depends upon it!

Posted on Wednesday, 13th July 2011 by Centrick Property

For every action, there’s a reaction. This old adage is certainly applicable in the residential lettings market. Some hopeful buyers have been prevented from fulfilling their dream by the banks’ reluctance to provide finance.

Therefore, prospective buyers continue to rent. Demand for rental property has increased significantly over the past two years, and increased demand means increased competition, and hence prices. This is of course great news for landlords. Not all, but those who bought strategically, have benefited.

Latest research indicates that the average rents have risen 4%, still over-and-above a fast rising inflation rate. Whilst prices for tenants have gone up in regions across the UK, London comes out as the most expensive area, costing double (£1372) the average rental price (£688) per month.

Nothing is risk-free, and from the viewpoint of potential landlords, there are safeguards that can be put in place to minimise the effect of unexpected surprises. If landlords protect themselves from lost income through rent guarantee insurance and robust tenant referencing they will be secured against the unexpected.

We at Centrick Property have built a robust reputation for matching our landlords with suitable tenants. Their portfolio income depends upon it!  Our tenancy rental arrears are over 50% below the national average. If you are considering letting out your property, or investing in buy-to-let property to achieve your investment goals, please come and talk to us.

Posted in Estate Management, First Time Buyers (FTBs), Landlord guidance, Lettings, UK Property Market Outlook | Tagged , , , , , , , , , | Comments Off

Waitrose in Knowle; which side of the fence are you on?

Posted on Wednesday, 6th July 2011 by Centrick Property

Last week, more than 1000 local residents visited the village hall in Knowle to view the revised plans for the planned Waitrose store.

Local residents have been kept informed through the Solhull News and other local sources, as this controversial scheme has gradually unfolded.

Waitrose has now scrapped plans to knock down Knowle village hall, and a smaller store has been proposed. Five bungalows will still need to be demolished, and in excess of 250 parking spaces will be created.

As with all proposed schemes, they are never short of controversy. Different people have different priorities. For consumers craving convenience, then this is exactly what they have been hoping for. They cannot envisage the sustainability of the old High St as we know it. Jobs for the local area are always a bi-product of a supermarket coming to town.

But for the local retailers, the arrival of Waitrose spells nothing but impending doom. Waitrose will tell you that their store will bring in numerous additional customers to Knowle. This may be true, but offers no guarantees that this will result in additional revenue for the local independents.

As we all know, many of the shops on Knowle High St, have been there for many years. They have the loyalty of the local residents, but no-one knows for how long. Supermarkets offer a much wider choice and at more competitive prices than many independents can hope to do.

One thing we know is that the appearance of Knowle High St will change one way or the other. It is a balance between job creation and preserving the village feel of Knowle. A Waitrose store will bring residents in from Solihull, Henley-in-Arden, and other surrounding areas, but let’s hope not at the expense of Knowle as we know it!

Which side of the fence do you sit on?

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Finding a flat mate is as easy as finding a date!

Posted on Saturday, 25th June 2011 by Centrick Property

We read everywhere about the difficulty of getting on the housing ladder. We have shown via our blog over the past few months that contrary to the mainstream media’s view, there are plenty of mortgage deals around. Indeed, some great bargains to be had if you can raise the deposit required.

But for many school and university leavers, renting is simply the only option. Perhaps they cannot bear the thought of going back to Mum and Dad’s (or probably it’s the other way around!), and therefore they are desperate to find somewhere to rent.

The rental market is booming at the moment, and many apartments on our books in Birmingham City Centre and Solihull are let within days if not hours, of them coming on to the market.

Enter http://www.speedflatmating.co.uk/ – a matchmaking service for flatmates. A great idea we think, and the timing is perfect. Rather than looking for a date, you go to a bar or wherever is hosting the event, looking for a flatmate. Whether you are looking to rent out a room, or to find somewhere to move in to, this is the event for you.

You can talk to whoever you like the look of. There are no obligatory three minute inquisitions as per conventional speed dating. Needless to say, this method of finding a suitable flatmate has taken off fast, with over 17,000 people expected to attend at least one event this year.

Meeting people face-to-face is a much safer way for people to find the right place to live. Some websites are not all that they appear to be, and this appears to be much safer. Furthermore, you don’t waste time trawling through “vacant” properties, getting all excited, only to be told they have already been let.

We think this could be a winner..do you agree?

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There may never be a better time to buy property:

Posted on Monday, 20th June 2011 by Centrick Property

Recent Research has indicated that it may well be more economical to buy a home than to rent one in some British cities.

Property website Zoopla.co.uk claimed this week that it was 9.7% more expensive to rent a typical first home than it was to buy one. Why would this be the case?

Falling house prices and low interest rates are key factors in coming to this assumption; but the research was based on an interest-only mortgage charging a rate of 5%.

Milton Keynes came out top of the list – with a two-bedroom home costing 43% more than mortgage payments on a similar property. But Birmingham isn’t far behind – with rents up 37% on the mortgage payments for a similar property. This was followed by Warrington and York, where rents are up 29% on mortgage costs.

So this could well prompt people to weigh up once again the financial options open to them. There is clear evidence that being a homeowner makes better financial sense than being a tenant.

Even in London, it is still 16% cheaper to buy a home on an interest-only basis than it would be to rent a comparable property.

At the other end of the scale, people are still better off renting in Poole, where it is 27% cheaper to be a tenant than to buy a home, while rents are 12% lower than mortgage payments would be in Plymouth.

The cost of renting has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat.

With current house prices and interest rates where they are and with rents on the rise, for those who can get a mortgage, there may never have been a better time to buy.

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Buying a property with a mate? Should I or shouldn’t I?

Posted on Tuesday, 14th June 2011 by Centrick Property

There are ways around everything! Mortgages are requiring larger deposits, and for some first-time buyers, without the Bank of Mum & Dad to turn to, they are considering buying their first property with friends. But is it the way to go?

Undoubtedly, it can make financial sense but you need a strategy of honesty and transparency from the outset. It is a big decision, and needs to be given the respect it deserves. Honesty with each other must be the starting point for any group of friends embarking on joint ownership.

Here are some tips if you are considering multiple ownership:

  • Shopping around for a mortgage, including deals specifically designed for joint ownership
  • Keeping paperwork in order by ensuring documents are accessible to everyone and signed by all the co-buyers
  • Consider making mortgage and bill payments from a joint bank account, rather than making them the sole responsibility of one owner
  • Draw up an inventory of items being brought into the house and who owns them, to avoid confusion if somebody moves out

But you should always be realistic. No matter what a great idea, it seems at the beginning, things can go wrong, and you need to put safeguards in place just in case.

We advise that you ask a solicitor to draw a document which outlines exactly what should happen if one of the owners wanted to leave or there were major changes in their lives. Set out a notice period if one of the housemates wants to leave, to allow time for another buyer to replace him or the other two to continue on their own.

If you are open and honest in your dealings, then multiple ownership can offer a viable route to home ownership.

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Mortgage deals are out there..we have done some of the digging for you!

Posted on Thursday, 9th June 2011 by Centrick Property

It has emerged that the number of mortgage deals allowing people to borrow 95% of the property’s value has gone up to its highest level since the end of 2008.

Homebuyers looking for 90% mortgage deals now have more choice, with 244 products open to them, compared with 199 at the start of this year and 77 two years ago.

Furthermore, the average new two-year fixed rate for someone who can manage a 10% deposit has edged down to 5.95%, its lowest level since early 2008.

So what is available now?

Skipton Building Society has a “best-buy” 95% two-year fix priced at 5.99% until July 2013, with a low application fee (£195) and a maximum loan size of £250,000.

Meanwhile, Yorkshire Bank and Clydesdale Bank both offer a three-year fixed rate for first-time buyers, priced at 6.99% for those borrowing 95%. In each case there is a £599 arrangement fee to pay.

Nationwide Building Society recently launched a savings account enabling first-time buyers to apply for one of its 95% mortgages. They can open a Save to Buy regular savings account which pays interest of 2.5% gross on balances up to £20,000. After at least six months of saving a minimum £50 a month, they are entitled to apply for a mortgage with just a 5% deposit. These currently include a deal fixed for three years at 6.19% and one fixed for five years at 6.79%, in both cases with a £400 product fee, although the rates will almost certainly have changed by the time first-time buyers qualify to apply.

For those who can afford a 10% deposit, there is a bigger choice.  Yorkshire Building Society has some quite decent deals at 90%, such as a two-year fix at 4.99% that is only available via its branches. There is a £995 product fee attached to this loan, £800 of which is added to your mortgage on completion.

The Co-operative Bank has one of the more competitive five-year fixes for those with a 10% deposit: 5.89%, with a £999 application fee. Its 10% deposit deals are only available for first-time buyers and home movers with annual household income of at least £20,000, and the maximum loan size is £315,000.

Lloyds TSB has the Lend a Hand deal, allowing buyers to borrow up to 95% of the property’s value. You can take out a mortgage with a deposit of just 5%, and benefit from the sort of rates available to those able to put down much more – provided someone else (typically mum or dad) puts up their savings as additional security. Your helper will need savings equal to 20% of the property’s value (your deposit and their savings must add up to 25%).

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Forget the naysayers, this is an ideal time to buy:

Posted on Thursday, 2nd June 2011 by Centrick Property

Despite the widespread media coverage that it is becoming ever harder to get on the housing ladder; this is not really the case. More and more banks are starting to lend, and LTVs are indeed coming down among some lenders; and not rising.

Rising rents and falling house prices present potential buyers with a time to strike. Buying a home is the most serious investment we will ever make, and epitomises what is termed “a long-term investment strategy”

Over the long-term, it has been proved since records began, that property will never let you down. Whether you are looking to buy to live in, or to enter the buy-to-let market, bargains in the housing market can be had.

We will be delighted to advise you on both investment strategies. We have an extensive portfolio of properties at any one time that can meet your needs.

On the buy-to-let side, very rarely do we have instances where tenants are behind with their payments. We work hard for our clients to provide rigorous tenancy checks, so that our clients have peace in mind in terms of receiving rental payments on time. These checks have given us a reputation within the marketplace for going the extra mile for our clients.

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Be one step ahead of the interest curve, and buy now!

Posted on Monday, 23rd May 2011 by Centrick Property

Planning for possible interest rate rises:

“In this world nothing can be said to be certain, except death and taxes” are the famous words of Benjamin Franklin. Although not certain, the cyclical nature of interest rates can be safely assumed. And after a period of very low interest rates, it is becoming increasingly likely that interest rates may increase later on in the year.

The Council of Mortgage Lenders (CML) reported a 16% rise in the remortgage loans last month, compared with the previous month. This indicates that some homeowners are preparing for what lies ahead.

The CML said it was likely that this was linked to expectations of an interest rate rise in the coming months, making mortgages more expensive, even if this increase was only small.

The number of home loans made in March to first-time buyers was 28% higher than in February, but 17% lower than a year earlier.

Typically, buyers now have to provide a 21% deposit to get on the property ladder for the first time. This is a little less difficult than the 24% typical deposit required a year ago, the CML figures show.

Only 4% of first-time buyers now choose an interest-only mortgage compared with 30% before the financial crisis, when these loans were much more available from lenders.

If interest rates do go up, do not expect anything dramatic. Many economists are predicting a 0.5% rise at most in 2011. But if you are thinking about buying a property, it will be cheaper to do before the interest rate cycle begins its upward cycle.

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The place to be in Birmingham..it has to be St Paul’s Square!

Posted on Friday, 13th May 2011 by Centrick Property

Reading in the Birmingham Post this week, St Paul’s Square in Birmingham has been shortlisted in the Google Street View Best Streets awards 2011. It comes under the “hippest street” category. Voting closes on May 22. The winners will be announced in June. To vote, go to http://maps.google.co.uk/beststreets

The Georgian square; home to the legendary JamHouse and the popular Lasan (of TV fame no less), is up against streets in a number of other cities across the UK.

Nowadays, St Pauls Square is the place to be in the centre of Birmingham, whether it is to socialise, live or work.

Steeped in history, the Square was ideally positioned to witness the growth of Birmingham in the Industrial Revolution. Indeed, world-famous industrialists such as James Watt and Matthew Boulton, attended St Paul’s Church. They had their own pews there, at a time when pews within the church were bought and sold as commodities!

One of the most recent landmarks in St Paul’s Square is Chord Development’s St Paul’s Place , a mixed-use scheme, which comprises 148 apartments, including a range of one and two beds, plus three penthouses, as well as over 25,000 square feet of commercial space. Chord has spent three years developing the £35 million scheme, and we at Centrick are the managing agents of this development.

For more information or to arrange a viewing on any of the properties at St Paul’s Place, please call Centrick on 0845 680 0981 or email lettings@centrickproperty.co.uk

Posted in Birmingham, First Time Buyers (FTBs), General, Lettings, Residential Sales, St Paul's Place | Tagged , , , , , , , , , , , , | Comments Off