Are you an investor or looking to become a landlord in Crewe or Nantwich?
2015 was a year of announcements if it wasn’t one thing it was another. All to put property investors off being landlords. The changes were as follows:
- New rules regarding smoke and carbon monoxide alarms
- Changes to the section 21 notices and new prescribed information
- Introduction of immigration checks
- Increase in stamp duty from 1st April 2016
- Changes to the mortgage interest tax relief commencing from 6th April 2017 for higher rate tax payers.
So in reality has the governments new changes put landlords off? Well in my experience the first quarter of 2016 has been really busy. Now this might be that landlords are getting to hear about me and what I can do for them or it could be that they just don’t care and can still see the benefits of investing in property over the long term. I do know however that some landlords are selling their investment properties. You only need to look on Rightmove and a number of estate agents are selling properties with sitting tenants. However I think this might be slightly premature as HS2 may well bring an increase in capital value over the longer term. As I stated in an article reported int he crewe Chronicle last week I have a number of investors looking to buy in Crewe from outside the area and also across the world.
I thought I would look at house prices over the last 12 months. We can see in Crewe that prices have already started to increase and have increased by 5.3% whilst Nantwich properties have actually reduced by 2.54% and Sandwich prices have increased by 0.09.
In the lat 3 months house prices have risen in Crewe, Nantwich and Sandwich. The National Association of Estate Agents have predicted that house prices are going to increase by 50% over the next 10 years. So if you buy a house for £100,000 and you put down £25,000 as a deposit in 10 years you will have made £50,000 capital growth and approximately £20,000 in rent (thats working on receiving 10 months rental income a year at a rent of £500 pm). Obviously there are expenses to take off including interest payments, tax, repairs, agency fees etc. but for the initial £25,000 investment over 10 years thats still a really good return bearing in mind savings rates at the moment.
You do need to take these figures with a pinch of salt as property prices are not guaranteed to grow in value, interest rates may change with the need to pay more or less interest, tax and agency fees. As with an investment it is vital that you do your homework and fully understand the risks and carry out a complete affordability exercise. Being a landlord is not a decision to be taken lightly so seek advice from everywhere.
If after you have read this article you would still like to explore your options then please give me a call on 01270 661395 or send me an email to email@example.com and we can catch up for a chat over coffee or just a telephone conversation to suit you.