Where would Santa Claus invest in Guildford?

A landlord dressed as Father Christmas came to see me the other day and asked if the real Father Christmas wanted to invest in property, so he could have somewhere to put his feet up and therefore call "home", where would it be?

Well obviously it would have to have a chimney that would "stack up" with sufficient room for his reindeer, Rudolph, and accommodation for himself and Mrs Claus but most importantly a grotto to which local children could come to meet him and collect their presents. 

This would require a fairly large garden in which he could dig down to build a cave and therefore create the grotto. The garage would have to be fairly large not only to store the sleigh for Rudolph and all the presents but somewhere for the elves to pack the presents ready for delivery to all the children.

Having considered this requirement for a second, it suddenly dawned upon us. We knew the very place. It would be ideal. It would be located in a village just outside Guildford with a population of just 2,981 living in 1,310 households. The local area has woods and several commons ideal for Rudolph to munch grass and to play with all the other local four legged residents.

The property would be located at Christmas Pie Avenue, in the village of Christmas Pie, one of the most festive sounding street names in the U.K.

The curious name of Christmas Pie owes its name to a property once owned by a prominent local family named Christmas. They were major landowners during the 17th and 18th century. 

"Pie" is a word derived from the Saxon term "pightel" or "pightle" meaning a small piece of arable land. Until the area was built up during the 1920s there was a small field called "Pie Field" located near the Christmas Pie crossroads not far from the village of Wanborough.

The village is the home to Christmaspie Cottages, converted from the original Christmaspie Farm built circa 1823 which probably took its name from the association with the Christmas family. Nearby Santa will be able to work off a bit of his Christmas dinner on the local Christmas Pie Trail, a 8.5 miles long, leisure cycle route running from the northwest edge of Guildford to the east side of Farnham. 

Santa would not have to wait too long to buy in Christmas Pie Avenue because properties do tend to sell frequently. There have been 59 property sales since the beginning of 1995, and 4 in the last 12 months. 

Local bungalows all with chimneys designed for Santa Claus

Many owner occupiers are couples and families so Santa will not have far to travel to deliver presents to the local children. The majority of properties in Christmas Pie are bungalows so Santa will not have to negotiate too far down to the Christmas tree to drop off the presents either.

Now that Santa is having to live off a pension and savings and cannot obtain a mortgage because he is now 'elf-employed it is unlikely that he will be able to obtain a mortgage. In any case, there will probably be too many Claus' to comply with. The fact that he seems to be so poor is probably why he is always seen in the red. Fortunately for him, properties in Christmas Pie Avenue are reasonably priced compared to other areas of Guildford so he should be able to afford his purchase there.

For example, the most recent sale was at no 99, in August 2019, when a 2 bed house sold for £390,000. A similar sized property in Guildford town centre would be priced typically around £425,000.

However the current average value of property in Christmas Pie Avenue is £507,700, having risen by 5.3% in the last year and by 201.76% in the last 20 years, which is almost the same percentage at which Santa Claus' waste line has expanded over the same time.

This is my last blog before Christmas so all that remains for me to do is to wish all my readers a very, very Happy Christmas, good heath and lots of fun over the festive season. Ho! Ho! Ho!

Celebrating Christmas for charity in Guildford

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207.

Good debt or bad debt?

People often come to me concerned that the return on their savings is so small now that interest rates are at an all-time low. They are therefore challenged to find a home for their money where they will attract a higher rate of interest.

When I ask, "Well, have you considered 'property' as the home for your money?" they tend to retort, "Does that only work when you have lots of money?"

This is because we are all brought up to believe that you need at least a 20% deposit to buy an investment property and then a mortgage to fund the remainder of the purchase price. Yes, this does apply when using your own funds but there is an alternative way to invest.

Robert Kiyosaki developed the idea of good debt/bad debt in his popular book, "Rich Dad, Poor Dad".

Firstly, the mortgage on your own home is considered to be "bad" debt. This means that you have to pay the amount owed on the mortgage out of your own hard-earned income over a period of (say) 25 years when hopefully your finances will be in order at all times. Sadly, many property owners will go through a period of their life when times will not always be financially sound for them. For example, it's a sad fact but at least one in three people get divorced. Many people will be made redundant at some point in their working life too. So unless, there is a safety net there may not always be sufficient income to cover mortgage payments every month for the 25 year term.

When debt is used to fund property investments it is considered to be "good" debt. "Why is that?", I hear you ask. If your property investment is a rental property, your tenants are paying for your mortgage. This debt is called "good" debt because you are investing in an income-producing asset. Once your tenants have paid their rent to cover the cost of your monthly mortgage payment plus utility and Council tax bills (if you pay for these) any remaining money is profit, having allowed a percentage of this income to cover professional fees, maintenance, insurance and tax.

Investment property is therefore an income-producing asset, while the purchase of a residential property provides accommodation but no profit (unless you rent out a spare room).

The second concern that people often have is that you need vast sums of money to be able to invest in property. The answer to this is two-fold. In the first instance you should not invest too much cash in one property but use cash to afford a number of properties in order to spread your risk and secondly, to make your money work harder for you.

Few people will have hundreds of thousands of pounds lying around in their bank account and if they do, they are surely not receiving sufficient interest at today's rates to make this a practical thing to do. This means that all property investors, however wealthy they may have been, will eventually run out of personal funds to invest unless they are educated, professional investors who therefore know how to work round this challenge.

Successful property investors offer their network of contacts a golden opportunity to generate a higher rate of return on their funds. These returns will far-outweigh those earned by leaving their money in the bank; and they will have have had the pleasure of sharing in the success of a number of property ventures without having to spend time educating themselves in property investment methods.

When investing your own funds into property it is always wise to invest in a property that can be purchased below the typical market price i.e. at a discount. If this is not possible then one should add value by increasing the number of bedrooms to provide a higher rental income. This may be achieved simply by converting a reception room into a bedroom; or by converting a loft into a bedroom. Then the property has the potential to realise additional value so that the property can be remortgaged to provide the funds required to repay the investor.

As with all investment decisions professional advice should be taken and due diligence carried out.

If you would like any advice on doing your due diligence when choosing properties in a particular area of Guildford or a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207.

Guildford Property Market update - December 2019

This month is when we look forward to the New Year and of course, this will not only be the start of a new decade but a time of great uncertainty.

Now we know that the general election is to be held on Thursday 12 December the nation is hoping that the matter of BREXIT will be resolved once and for all, so the country can experience more certainty.

Looking back over the past year, asking prices in Guildford have continued to rise across the board, as have property values. Values increased by 4.61% in GU1, 2.39% in GU2 and 4.65% in GU4 respectively.

The number of properties for sale has fallen on average by 29% over the last year; and the time spent on the market has decreased but only marginally. There have certainly been very few new listings since the end of the Summer period when houses were either completed on or removed from the portals because the sellers were possibly speculative and had therefore decided to stay put.

The general trend appears to be for properties to be listed at an ambitious price only for the owners to become disillusioned by the lack of interest in their property, blaming BREXIT and the uncertainty in the market.

The good news is that buyers are still having to move and as stated last month, the number of transactions agreed is only marginally lower this year compared to last. There is likely to be a pent-up demand waiting for the outcome of the general election so house prices are likely to  continue to rise.

Most recent sales data from HM Land Registry

Rightmove have also made the point that those liable for stamp duty on their onward purchase, may be waiting to see whether stamp duty will be reformed to reduce the cost of moving. However Boris Johnson seems to have gone quiet on his proposal to change stamp duty.

As regards the future who can tell what will happen in the local property market. The only constant seems to be that there will always be a requirement to move as people experience changes in their lifes, creating the need for houses to always be bought and sold, especially in desirable areas with good schools, like Guildford.

In the meantime Guildford Property Newsletter wishes all its readers a Merry Christmas and a Happy Year so to finish this update on a festive note here are some events coming up during December for you and your family to celebrate the holiday season.

Spend Christmas at Guildford Castle on Saturday 7th December to enjoy the traditions of Christmas time past. Follow King Edward III and Queen Philippa of Hainault as they proceed up Guildford High Street to Guildford Castle to celebrate Christmas with much noise and mirth!

Participate in the Santa and Elf Fun Run to support Phyllis Tuckwell Hospice Care on Saturday 14 December.

See you again soon for next month's property update. To request a copy of the Rightmove Price Index report please call 01483 320207 or text 07786 965631