MERRY CHRISTMAS & HAPPY NEW YEAR TO ALL MY READERS

Wishing all my readers a wonderful Christmas and New Year. See you in 2016.

Colchester House Price Monopoly: How do Prices vary?

Well as the nights draw in, if there is nothing on the telly, the significant other and myself like to play the board game Monopoly. The buying and renting of property, it’s like a bus man'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 Colchester, 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 Colchester today.

Initially, I have focused on the CO1 postcode only, looking at the Brown Squares on the board, the ‘new’ Old Kent Road in Colchester today would be Hunting Gate, with an average value £107,000 (per property) and Whitechapel Road would be Exeter Drive, which would be worth £112,700. What about the posh dark blue squares of Park Lane and Mayfair? Again, looking at CO1, Park Lane would be Riverside Place at £340,480 and Mayfair would be High Street at £489,300. However, look a little further afield from the CO1 postcode, and such roads as St Clare Road would claim the Mayfair card at £1,143,600! Also, I can’t forget the train stations (my favourite squares), and over the last 6 months, the average price that property within a quarter mile of the station sold for was £163,860.

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

• ·        The average Colchester detached house today is worth £408,360 would have set you back 738 Pounds 16 shillings and 11 old pence.
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• ·        The average Colchester semi detached house today is worth £250,450 would have set you back 453 Pounds 2 shillings and 9 old pence.
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• ·        The average Colchester terraced / town house today is worth £214,230 would have set you back 387 Pounds 12 shillings and 1 old penny.
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• ·        The average Colchester apartment today is worth £159,290 would have set you back 288 Pounds 4 shillings and 1 old penny.

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 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 Colchester property market, you should consider the Colchester property you buy a medium to long term investment, because Buy to let is pretty much what it sounds like – you buy a property in order to rent it out to tenants.

As I reminded a soon to be first time landlord from Crockleford Heath the other week, Buy to let in Colchester (as in other parts of the Country) is very different from owning your own home. When you become a Colchester landlord, you are in essence running a small business – 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 to 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!  

6.5% Return from William H Brown!

This 2 bedroom ground floor apartment is situated North of Colchester on Mortimer Gardens. On the market with William H Brown the property benefits from two double bedrooms, an allocated parking space and is also being sold with no onward chain. The location of the property is ideal as it is a short commute to both the A12 and Colcester North Station. 

The property is priced at offers in excess of £120,000 and in the current rental market could achieve £650pcm. This achieves a return of 6.5% return, making this property a fantastic investment.

For more information please follow the link below. 

http://www.rightmove.co.uk/property-for-sale/property-38128221.html

More Estate Agents - 6.3% Return!

This one bedroom first floor maisonette has come to market with More Estate Agents. Situated East Colchester on Hunting Gate just off of Greenstead Road the property is within easy reach of the university and a short drive to the town centre. 

The property is already tenanted with the tenant paying £525pcm on a 12 months tenancy and if purchased at the asking price would achieve a 6.3% Return. This is a fantastic return and the property would be a great long term investment due to his location. 

For more information on this property please follow the link below.

http://www.rightmove.co.uk/property-for-sale/property-52408837.html?premiumA=true

Abbotts investment - 6% Return

This three bedroom end of terrace house has come to market with Abbotts at a purchase price of £140,000. An investment for cash buyers only this property is situated in the popular area of New Town on Albert street. This is a great location as it is within walking distance to the town centre and the town station.

The property would achieve £700pcm and if purchased at the asking price it would achieve a return of 6%. This is a fantastic return and would provide a great long term let.

For more information please follow the link below.

http://www.rightmove.co.uk/property-for-sale/property-52350331.html

Investment opportunity from David Martin .. 6.5% return

This 2 bedroom first floor apartment has come to market with David Martin Group with a guide price of £110,000 - £115,000. Situated south of Colchester on Friday wood Green the property benefits from views over the woods, an allocated parking space and a communal garden area. 

The property would achieve £600pcm in the current rental market and if purchased at £110,000 this would achieve a return of 6.5%. The property is also being sold with no onward chain therefore making it the ideal investment property. 

For more information and to see the internal photos please follow the link below. 

http://www.rightmove.co.uk/property-for-sale/property-51256489.html

Has Osborne killed buy to let in Colchester?

Well George Osborne, in his Autumn statement last week, caused Colchester 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, 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 Colchester 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 be reduced slowly to the basic rate of tax – currently 20%.

Surely this is the end of Buy to Let in Colchester? 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. Colchester 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 Colchester or at what price – you would always make money. Now with these extra taxes, the adage of ‘any old Colchester 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 wouldnt you take the same advice and opinion about buying a buy to let property in Colchester?

Jackson & Co Buy to Let .. 6.75% Return

This one bedroom apartment has come to market with Jackson & Co priced at £120,000. The property benefits from modern fixtures and furnishings as well as its location being within walking distance to the university. This makes it the ideal student let and it is also being sold with no onward chain. 

The property would let for £675pcm and if purchased at the asking price would achieve a return of 6.75%. This is a fantastic yield and an investment opportunity not to be missed. 

For more information please follow the link below.

http://www.rightmove.co.uk/property-for-sale/property-56310470.html