Written By Em

Em

Em Morley

South East London Property Guide

Published On: May 30, 2015 at 1:13 pm

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Categories: Property News

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South East London is emerging as one of the best parts of the capital for first time buyers, as 15,000 starter homes have been bought in this area in the last year, revealed Hamptons International.

The highest levels of demand have been felt in areas furthest from central London, such as Beckenham, Crystal Palace and Bromley, where it is still possible to buy a house with two or more bedrooms for less than £300,000.

For first time buyers wanting to stay closer to the centre, one-bedroom flats in areas such as Brixton and Surrey Quays are the most popular.

Head of Research at Hamptons International, Johnny Morris, comments: “For some first time buyers, it’s simply a case of finding a home that they can afford. But an increasing number are choosing to skip a step in their housing journey, looking for a bigger home they can stay in for longer.”1

The following areas in South East London offer the best value and lots of potential for buyers:

Beckenham, Zones 4/5 

Beckenham has nice shops, cocktail bars, good schools and a village feel. Young professionals and families are moving to the area, not too far from the City.

Average price of a flat*: £313,790

* Property prices from Zoopla

Brixton, Zone 2

Brixton Village, featuring cool bars and restaurants, has made the area one of the trendiest spots in London.

Average price of a flat: £375,954

Bromley, Zone 5 

This town is 12 miles from central London and has been promised huge investments, marking a bright future.

Average price of a flat: £277,709

Camberwell, Zone 2

Beautiful architecture with an urban lifestyle makes Camberwell appealing to young professionals and families.

Average price of a flat: £340,182

Catford, Zone 3

Eight miles from central London, Catford has a strong community, popular schools and well-priced homes.

Average price of a flat: £235,012

Dulwich Village, Zone 2

There aren’t many parts of London that feel rural, but Dulwich Village has that vibe, with Georgian houses, cottages, good schools and independent shops.

Average price of a flat: £387,274

Greenwich, Zone 2

Historic Greenwich will soon see a new 24-hour community and 15,000 new homes.

Average price of a flat: £424,676

Kennington, Zones 1/2

Kennington has been redeveloped, bringing in an eclectic group of residents. The new Damien Hirst gallery adds culture.

Average price of a flat: £429,701

Lee, Zone 3

House hunters have previously overlooked Lee, but the area has a good community spirit, fascinating history, good schools and good value Victorian properties.

Average price of a flat: £251,356

Lewisham, Zone 2 

For commuters, fast trains are attractive, while families look for homes in the conservation areas. If buyers are quick, they can get in on London’s next big Tube project.

Average price of a flat: £309,826

Nunhead, Zone 2 

Between East Dulwich and Peckham, Nunhead has a neat high street and prospering local festivals.

Average price of a flat: £316,943

Peckham, Zone 2

Peckham is young and exciting in parts, but also has a solid scene of good cafes, bars, shops and schools.

Average price of a flat: £316,943

Penge, Zone 4

Investors and young professionals are taking advantage of Penge’s low property prices, train links and fast commute.

Average price of a flat: £242,372

Vauxhall, Zone 1

For buyers with larger budgets, Vauxhall is having an artistic renovation, providing a creative place to live that’s close to the West End.

Average price of a flat: £1,484,560

Woolwich, Zones 3/4

Commuters and investors are looking to Thames-side town Woolwich for its new redevelopment opportunities.

Average price of a flat: £272,440

1 http://www.homesandproperty.co.uk/area-guides/greater-london/area-watch-property-guide-south-east-london#1

The Cost of Moving House

Published On: May 30, 2015 at 12:41 pm

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Most people will take note of solicitors’ fees, mortgage deposits, estate agent and search fees, surveys and Stamp Duty when planning to move house. However, there are other costs to remember.

Depending on how the property is being bought, there could be transaction costs and finders fees to bear in mind, and these charges can add up. So how much does it cost to move house?

Solicitors’ fees

On average, solicitors’ fees are between £500-£1,500. It is advised that buyers instruct their solicitor to conduct a local search on the property to ensure it is not under threat of being destroyed. These searches can cost £200 or more.

The Cost of Moving House

The Cost of Moving House

Estate agent fees

These charges are only paid by the vendor and range between 1-3% of the sale price plus VAT at 20%.

Stamp Duty

Stamp Duty is only payable on properties worth over £125,000 and it is added into the overall cost of the purchase.

For buyers in Scotland, the new Land and Building Transaction Tax (LBTT) applies as of April 2015, which affects homes worth £145,000 and over.

Read more about Stamp Duty here: /stamp-duty-revamp-benefits-investors/.

Surveys

Most mortgage lenders insist on the buyer having the house surveyed. This is beneficial to all as it ensures the home is structurally safe and sound. Surveys cost from £150 to £1,000 or more, depending on the type of survey conducted.

The above costs apply to those buying and selling a home. But for some people, moving house may not include these steps.

Moving house

Some people will inherit a property from family. If they plan to move here from rental accommodation, then they do not need to sell or buy. However, moving to a new house still costs money.

It may be wise to have the new home surveyed for peace of mind.

In terms of moving, the amount of belongings a person is taking to a new property can alter the costs. If they do not have much furniture, they may only need a small van for one day. This costs around £150.

If there is a large amount to move, then a professional removal company is advisable. The amount of furniture and the distance between the houses can see the cost range from £600-£1,500.

If someone moving home is buying and selling, the cost could add up to thousands of pounds. However, when a move doesn’t include these steps, it can cost a few hundred pounds.

Moving house can be cheap, but buying and selling can become expensive.

 

 

 

 

 

Fifa Properties Bought with Bribes

Published On: May 29, 2015 at 4:36 pm

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The Fifa corruption investigation has uncovered huge property empires paid for illegally by officials and company executives.

The US authorities have found over a dozen homes, many registered to offshore firms, which have either been obtained illicitly or bought using unlawful funds. One senior official is believed to have purchased a property using a bribe.

One of the properties is a six-bedroom detached house in Loganville, Georgia, owned by Jeffrey Webb, the Fifa vice-president and president of the Confederation of North, Central America and Caribbean Association Football (Concacaf).

The home is worth around $940,000 (£613,000) and was built in an extravagant style in 2007, with ornate pillars and large balconies. The house has a pool that prosecutors believe was bought with bribe money.

Another of Webb’s properties is held by Kosson Properties Limited, a company alleged to have been founded by Costas Takkas, a British official who acted as Webb’s attaché as Concacaf president.

US authorities have filed an indictment stating that the funds for the home came from a bribe paid by Traffic Sports USA, a sports marketing firm pursuing profitable commercial rights contracts with Fifa.

It is believed that the money was wired to Takkas, who transferred some to an account in his name in Miami. This was then transferred to a swimming pool builder in Georgia, where Webb’s pool was being installed.

The indictment says: “Takkas transferred another portion of the funds directly from his Kosson Ventures account at Fidelity bank in the Cayman Islands to SunTrust Bank in Georgia for Webb’s benefit in connection with Webb’s purchase of other real estate in Stone Mountain, Georgia.”1

The indictment specifies two homes in Stone Mountain, both registered under Kosson Properties.

One property is worth an estimated $142,000 and has four-bedrooms over 2,846 square feet. The other is a three-bedroom, situated five miles away.

The US authorities have also identified a flat worth around $1.57m overlooking Biscayne Bay that is owned by Aaron Davidson, the president of Traffic Sports. He is one of four sports marketing executives charged in the US.

A further three homes in Florida were named in the indictment, which have been linked to Rafael Esquivel, the president of the Venezuelan football federation. They are worth a collective $483,000.

Separately, Fifa executive committee member Eduardo Li was arrested in Zurich. He owns a home in Aventura, Florida, which was bought for $545,000 in 2007, and a property in an expensive part of his home country, Costa Rica.

Former Fifa vice-president Jack Warner is believed to have built one of the largest property empires. Similarly to Li’s homes, the indictment did not claim these were funded by bribes and are therefore not likely to be seized.

Warner, who lives in Trinidad, is accused of receiving $10m in bribes.

1 http://www.telegraph.co.uk/news/uknews/crime/11637280/Fifa-property-empires-built-on-bribes.html

Surging BTL sector earned landlords £112bn

Published On: May 29, 2015 at 3:37 pm

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Categories: Landlord News

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Figures released today indicate that the surging buy-to-let market earned British landlords a staggering £112bn in rents and capital gains over the last year. The findings appear to spell bad news for first-time buyers, with the popularity for investment pushing their dreams of homeownership further away.

Investment

Rising property prices and more condensed mortgage-lending criteria have lead more and more investors to come into the rental market. The report from mortgage lender Kent Reliance showed that landlords in Britain made an incredible £67.2bn in capital gains, with an additional £44.3bn in rent, in the year to March 2015. This combined total was an increase of £5.8bn on same period one year ago.[1]

Ever growing rents are a key contributor to the increase, with particular strong growth in London and the South-East enhancing profits. The figures suggest that landlords are making almost £4bn per month in rental yields from their properties. The average monthly rent grew by 3.9% in the first quarter of this year, to now stand at £832. These figures suggest the largest rise since the Autumn of 2013.[2]

Bright forecast

New pension reforms that came into force last month are likely to bring even more money into the Buy-to-Let sector. Kent Reliance predict that by the year 2020, the total number of rental properties will by 5.5m, which would represent about 20% of all homes.[3]

The Office for National Statistics and Land Registry’s latest figures show that landlords now own properties with a total value of £990.7bn. This is more than three and a half times the £262bn what the sector was worth in 2001.[4]

Surging BTL sector earned landlords £112bn

Surging BTL sector earned landlords £112bn

Andy Golding, chief executive of OneSavings Bank, owner of Kent Reliance, feels that, ‘buy-to-let has come of age, moving from a niche asset class to one big enough to rival the stock market.’ He thinks that, ‘landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening.’[5]

He acknowledges that, ‘house prices are showing signs of steadying somewhat,’ but says that, ‘growth remains brisk.’ Golding also states that, ‘long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year.’[6]

Concluding, Golding said, ‘combined with the dearth of high LTV lending to first-time buyer, this will continue to buoy demand for rental accommodation as well as landlords’ returns and the sector will continue to expand.’[7]

[1] http://www.theguardian.com/money/2015/may/28/booming-buy-to-let-112bn-landlords

 

 

 

Buy-to-Let Offers Better Returns than Savings Accounts

Published On: May 29, 2015 at 3:23 pm

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Categories: Finance News

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Buy-to-let investments are becoming an alternative to traditional savings accounts for many, an industry broker has revealed.

Unsubstantial rates on savings accounts are pushing people into property investment, with buy-to-let mortgages offering higher yields.

Buy-to-Let Offers Better Returns than Savings Accounts

Buy-to-Let Offers Better Returns than Savings Accounts

Chief Executive of mortgage broker SPF Private Clients, Mark Harris, says that the sector is attractive and mortgage deals are appealing to new investors.

He says: “The buy-to-let market continues to attract investors fed up with poor returns on savings accounts. With lenders reducing rates and loosening criteria, it is also getting easier to obtain a buy-to-let mortgage.”

Harris notes that aspiring investors should remember that buy-to-let loans generally require higher deposits: “Typically, the deposit required on a buy-to-let mortgage is higher than on a residential deal, with 25% the norm, but there are deals available for those with just a 15% down payment.

“However, rates are higher the smaller the deposit you have. For those with a 40% deposit, two-year fixes are available from 2.25%. If you have a 25% deposit, expect to pay around 50 basis points more. For those with a 15% deposit, the rate rises to around 5%.

“Five-year fixes are available from 3.29% (40% deposit). However, this has a 2.5% fee. If you prefer a flat fee of £2,000, the rate increases to 3.49%.

“Variable rates are available from less than 2% for those with a 40% deposit. This increases by 50 basis points for those requiring 75% loan-to-value [LTV]. Again, for those with a 15% deposit, the rate is around 5%.”1

Harris says that most landlords go for interest-only mortgages, as the interest can be offset against rental income for tax purposes.

1 http://www.yourmortgage.co.uk/buy-to-let/buy-to-let-an-alternative-to-poor-savings-rates/

 

Increasing Investment in Spanish Property

Published On: May 29, 2015 at 2:36 pm

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This year has not been good for the euro, with sterling showing signs of great strength. It is therefore no surprise that 200,000 more Britons are considering investing in the Spanish property market.

The latest Spanish Property Market Confidence Index (SPMCI) from Spain’s primary property portal, Kyero, found that about 71% of estate agents in the country had more confidence in the market in the first quarter (Q1) of 2015 than the previous year.

Including 160 English-speaking and 216 Spanish-speaking agents in Spain, the study revealed an optimistic attitude towards the market from the English speakers.

Increasing Investment in Spanish Property

Increasing Investment in Spanish Property

Director of Kyero, Martin Dell, comments: “The strength of sterling has played a key role in the confidence divide that we are seeing currently between English-speaking and Spanish-speaking real estate agents in Spain.

“Some 30% of English-speaking respondents have highlighted stronger sterling as the most significant change over the past few months. For Spanish-speaking agents, increased marketing tops the table of significant changes, with 26% of respondents flagging this up as the biggest change.”1

It is clear that there has been further marketing to British property investors this year, with agents offering complete investment packages in coastal resort areas.

Properties that were taken off the market months ago have been brought back with huge discounts, with some offering up to 110% loan-to-value (LTV) mortgages.

Professional management firms are releasing homes back onto the market in an attempt to attract British investors. To still earn healthy profits, companies are using agents on a time-sensitive, volume sale basis.

Despite it being a great time for British investors to buy Spanish property, experts expect them to wait a while to experience any marked capital appreciation. Many areas on Spain’s southern coastline have become swamped by empty, half-finished developments, often owned by banks.

When these are completed and sold, the offers and low cost mortgages provided restrict any property price growth.

However, for experienced investors, a simple purchase is straightforward. Record high numbers of tourists are visiting Spain, causing almost guaranteed rental income in resort areas.

British buyers purchasing the right property in the right place will enjoy healthy returns.

However, investors should note that agents are pushing British buyers to act quickly. Always remember to research, calculate and take your time before buying. There are so many properties on Spanish banks’ books that the bargains are set to continue for some time.

It is also unlikely that there will be huge price growth in the next two years, as there is a substantial oversupply of homes.

1 http://www.propertyshowrooms.com/spain/property/news/agents-report-rising-investor-demand-for-spanish-property_313419.html