Oakham house price 'Monopoly'; How do prices vary?

Well, during these dark winter nights, if there is nothing on the telly, my family and I like to play the board game ‘Monopoly’.  The buying and renting of property, it’s like a busman’s holiday for me!

Interestingly, the game was originally invented at the turn of the 20^th Century (in 1903) and the game was initially called ‘The Landlord’s Game’!  Anyway, after a few years in the wilderness, the current owners of the game renamed it in 1935 and so began ‘Monopoly’ as we know it today.

So, whether you are a homeowner or landlord in Oakham, what would a Monopoly board look like today in the town?

Property prices over the last 80 years have certainly increased beyond all recognition, so looking at the original board, I have substituted some of the original streets with the most expensive and least expensive locations in Oakham today.

Initially, I have focused on the LE15 postcode only, looking at the brown strips on the board, the ‘new’ Old Kent Road in Oakham today would be St Anne’s Close, with an average value £105,900 (per property).  Similarly, Whitechapel Road would be Ladywell, which would be worth £120,500.

What about the exclusive dark blue strips of Park Lane and Mayfair? Again, looking at LE15, Park Lane would be Stamford Road at £725,000 and Mayfair would be Catmose Park Road at £850,000.  However, look a little further afield from the LE15 postcode, and such roads as Bradley Road in Clipsham would claim the Mayfair card at £932,500!

Also, I can’t forget the train stations (my favourite!), and over the last 12 months, the average price that property within a quarter mile of the station sold for was £212,550.

So, that got me thinking… what you would have had to have paid for a property in Oakham back in 1935, when the game originally came out?

·        The average Oakham detached house today is worth £422,000 would have set you back 763 Pounds 10 shillings and 6 old pence.

·        The average Oakham semi detached house today is worth £237,430 would have set you back 429 Pounds 11 shillings and 7 old pence.

·        The average Oakham terraced / town house today is worth £203,100 would have set you back 367 Pounds 9 shillings and 4 old pence.

·        The average Oakham apartment today is worth £153,500 would have set you back 277 Pounds 14 shillings and 6 old pence.

If that sounds like another currency, you must be in your 20’s or 30’s, because it was back in February 1971, that Britain went decimal and hundreds of years of everyday currency was turned into history overnight. On 14th of February of that year, there were 12 pennies to the shilling and 20 shillings to the pound. The following day all that was history and the pound was made up of 100 new pence.

Anyway, I hope you enjoyed this bit of fun, but underlying all this is one important fact; Property investing (like Monopoly!!) is a long game, which has seen impressive rises over the last 80 years.

In my previous articles I have talked about what is happening on a month by month, or year by year, basis and if you are going to invest in the Oakham property market, you should consider the Oakham property you buy as a medium to long term investment, because Buy-2-Let is pretty much what it sounds like… you buy a property in order to rent it out to tenants – on a long term basis.

As I reminded a soon to be ‘first time landlord’ from Barleythorpe the other week, Buy-2-Let in Oakham (as in other parts of the country) is very different from owning your own home. When you become an Oakham landlord, you are in essence running a small business – and one with important legal responsibilities.

On that note, I want to remind landlords of the recent and future changes in legislation when it comes to Buy-2-Let. This year, rules have changed about tenant deposits, carbon monoxide detectors and early in the New Year, landlords will have responsibilities to do immigration checks on all their tenants.

Failure to adhere to them will mean a minimum of heavy fines in the thousands or in some cases, prison ... it’s a mine field!

If you have any questions on a potential Buy-2-Let property you have seen, or if you have an existing property, and would like my opinion, please contact me via david@upp-property.co.uk.  I look forward to hearing from you.

 

 

 

 

 

 

Stamford vs Oakham - "Clash of the property market Titans"

Many landlords have been asking me my thoughts on the Stamford property market recently, and in particular, what is happening to property values.

My calculations show property values in Stamford quite interestingly grew in the month of September by 0.2%.  When one looks at the annual growth, Stamford values are 4.2% higher (when comparing Sept 14 to Sept 15), impressive when you consider the annual growth of property values was only 3.3% per annum in May.  

On the other hand, there are signs that the fundamental growth of property values in Stamford has now peaked, despite those average property values being below levels recorded in 2007 (just before the 2008 crash).

Whilst the Stamford headline rate appears to be better, i.e. the year on year (Sept 14 to Sept 15) growth rate of 4.2% is obviously better than the 3.3% in May 14 to May 15), this impressive rise of Stamford property values masks the underlying truth in what is really happening to local property values in the town.

Throughout 2015, property values have been 'yo-yo like' on a month by month basis, being quite volatile in nature.

For example;

·                     September 2015               0.2% rise

·                     August 2015                       0.4% rise

·                     July 2015                              0.3% rise

·                     June 2015                            0.2% rise

·                     May 2015                             0.0% level

·                     April 2015                            1.0% rise

·                     March 2015                         0.5% rise

This is in part due to seasonal factors, as well as mortgage approvals increasing over June and July, and then falling by over 15% in August, according to the Council of Mortgage Lenders (CML).

The outlook for the Stamford property market remains positive against the foundations of low mortgage rates and growing consumer confidence.

However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue?

On a positive note, Stamford property values are still running ahead of salaries and average property values are 1.2% below the levels recorded in 2007.

Talking to fellow property professionals in the town, demand for property has been showing signs of moderating in the final few months of 2015, which in turn will lead to a slight slowdown in the pace of house price growth in the run up to the festive season.

You see, it is really important not to read too much into one month’s (September’s) headline figures.

Readers might be interested to note that before the 2008 property crash, all the UK region’s housing markets tended to move up and down in tandem like the Stamford Synchronised Swimming team at the Stamford Leisure Pool!

Since then though, the Greater London property market took off like a rocket in 2009/10, whilst the rest of the UK only really started to grow in 2012/13, and even then that growth was a lot more modest than the Capital’s.

Looking closer to home, it can even be different in neighbouring towns, areas and cities, so whilst Stamford property values are 4.2% higher than a year ago (as mentioned above), Oakham property values are 6.9% higher than a year ago.

I cannot stress enough the importance of doing your homework.   Please read my other articles on this blog, along with what I consider to be the best Buy-2-Let deals around at any one time in the town, irrespective of which agent it is on the market with.  And, please contact me if you have any questions on a property you already own, or if you have seen a potential property you are interested in buying.  I would be happy to chat through its pro’s (and con’s) with you.

Email me via David@upp-property.co.uk or call me on 01780 484 554.

I look forward to hearing from you.

 

 

3 Best Buy-2-Let on the market...

1.
In no particular order, the first property on my list this week is this superb terraced home on Radcliffe Road in Stamford.  This one has a superb close to town location, would be an excellent investment, especially as it looks to be presented in excellent order and has an upstairs bathroom.
  

Radcliffe Road, Stamford - asking price of £164,950, via Newton Fallowell

You could expect an income of around £625pcm

 

Click on this link to see it's details and to contact Newton Fallowell directly...

http://www.rightmove.co.uk/property-for-sale/property-56231576.html

 

2.
Secondly, on the market with UPP Property Agents (Guide Price £255,000), this fantastic family home on Brooke Road in Oakham (close to the well regarded Brooke Hill Primary School, and within walking distance into town), will make a great investment for someone looking for capital growth and with the facility to extend (STLPP). 

 

Could be purchased with tenants in place, so to expect an income from day one!

 

Brooke Road, Oakham - guide price of £255,000, via UPP Property Agents

Currently let out and achieving £725pcm with long standing tenants.

 

Here are a few pics to whet your appetite, but do follow the link below for full details... 

http://www.rightmove.co.uk/property-for-sale/property-38260131.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Click on this link to see more and to contact Adrian McCarthy, UPP Property Agents.

 

http://www.rightmove.co.uk/property-for-sale/property-38260131.html

 

Tel: 01572 725 825 or email: Adrian.Mccarthy@upp-property.co.uk

 

 

3.
And, last on my list of great B2L's is this tidy bungalow.  Bungalows are always a solid rental investment. The “younger generation” are investing in bungalows as a their retirement home, but are snapping them up now.

Glebe Way, Oakham - Offers over £179,995, via Murray Estate Agents
Expect an income of £650pcm and likely to appeal to long term tenants.
A sound purchase.

Click on this link for more details and to contact Murray Estate Agents directly.

http://www.rightmove.co.uk/property-for-sale/property-55972433.html

Has Osborne killed buy to let in Oakham?

 

George Osborne’s autumn statement last week caused landlords 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, on a £124,000 property, the stamp duty goes from nil to £3,720. It becomes quite stark when you look at the middle market, so 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 next year. 

Some say property in Oakham (and Stamford come to that) 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 chose 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 (i.e. 40% or 45%). However, over the next four years this will reduce slowly to the basic rate of tax – currently 20%.

Surely this is the end of Buy to Let in Oakham? 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. Oakham 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 Oakham or at what price – you would always make money. Now with these extra taxes, the adage of ‘any old Oakham (or Stamford) house will make money’ has gone out of 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 Rutland / South Lincolnshire / North Cambridgeshire?