When the news broke that Stamp Duty is set to rise in April 2016 inevitably there were gasps from Landlords and Letting Agents across the country.  Questions were asked locally whether or not this would kill the buy-to-let market in the Western Wards.

The reality, however, is that more prospective investors have come through my door in the last 10 days than I can care to remember in recent years.  Not only have I had many conversations with a lot of my existing Landlords who are considering adding to their portfolios prior to April. But interestingly I have spoken with many first time Landlords who have made the decision to dive in off the back of George Osborne’s announcement three weeks ago.

Of course this mini-stampede will most likely only continue until the new rates come in to force.  But the feedback I have been receiving, especially from my established Landlords, has been positive.  After all stamp duty has always been factored in to these Landlords’ yield calculations anyway.  Most of them will diversify with their investments when the deadline passes if the yields become unattractive.

The best deal I have seen this week for those active Landlords is a one bedroom apartment in Park Gate which is currently let out at £725pcm.  The current owner would trade at £145,000 with the Tenant remaining in residence.  With minimal monthly maintenance charges of £85, and factoring in the current stamp duty, the net yield works out at a fraction over 5%.

Whilst we are all still slightly unsure exactly how much impact the changes will effect buy-to-let investment in Locks Heath and the surrounding areas after April. One thing we can be sure of is that the next four months are set to be a busy time.

If you would like some advice about buying to let, whether you are an established Landlord or someone thinking of investing, please come in and see me at our office in Middle Road, Park Gate or call me on 01489 570011.

A first-time landlord came to see me at our office in Park Gate this week. He lives in Locks Heath and having recently heard about the planned changes to Stamp Duty for Buy-To-Let Landlords in April 2016 has decided to invest sooner rather than later.  He asked my opinion on where he should buy a Buy-To-Let property.

As with a lot of investors this Landlord is keen to buy in a similar area to where he currently lives so has been thinking about Locks Heath, Park Gate and Titchfield Common as potential locations.

We looked at these three current Buy-To-Let deals in those areas to explore which area would work for him:

A one bedroom house with a conservatory and gas central heating in Locks Heath which is on the market for £165,000 and would let at around £695pcm giving a gross yield of 5%.  When you also consider that this property has increased in value by 15% in the last 18 months this certainly looks like an attractive purchase.

The second property is a modern ground floor two bedroom apartment in Park Gate.  This is on the market for £175,000 and would achieve a rental income of £750pcm.  This gives a gross yield of 5.14%.  The property is less than 10 years old so there is unlikely to be too much maintenance to factor in to the calculations.

Lastly we looked at a studio flat in Titchfield Common which is on the market for £107,950.  A monthly rent of £495pcm in good condition would give a gross yield of a handsome 5.53%.

We found all three areas that the Landlord was looking at as potential locations to be equally good for investment.  All give good returns with some giving better capital growth than others.  So it is now down to him to make his decision prior to 1 April 2016.

If you would like some advice about buying to let, whether you are an established Landlord or someone thinking of investing, please come in and see me at our office in Middle Road, Park Gate or call me on 01489 570011.