How to ensure a sale proceeds without delay

Sellers often ask how long will it take to move into a new home. If we lived in a perfect world an offer would be accepted and you'd be unpacking boxes six weeks later. Sadly this isn't a perfect world and there are many factors that they can influence the timeline of your property sale or purchase.

The first step is to make sure you have an estate agent and solicitor in place that are both aware of your time frame. It's also essential to check that your buyer has sorted out their finance. This is something that your estate agent should have checked before recommending you accept an offer from them, as a part of their vetting process, in order to make sure they are in a position to proceed with a sale. If this is not completed then this could be a real issue and therefore cause an unnecessary delay, or worse, result in a sale falling through.

Ideally a sale could be completed within six weeks if it's a simple straightforward sale with no chain and it is unusual for a house sale to take any longer than three months. If there is a chain there can be unexpected delays with other parties to the sale having their own challenges resulting in delays so you can expect your house sale to take typically between three and four months when this happens.

It is advisable to establish a completion date as soon as you can for all parties and to make this a part of the negotiations. Solicitors and surveyors will be busy especially during peak periods when sales are higher and therefore find themselves stretched which can hold things up. It's therefore important that you use a recommended solicitor that you feel confident will get things moving for you and help to speed up the process and mitigate any delays.

Solicitors who can appear to have no incentive to act quickly are one of the biggest causes of frustrations to clients so it's important to choose an agent that is on the case, chasing any missing paperwork and communicating frequently with all parties to minimise delays and therefore ensure a smooth transaction.

If you cannot rely on your estate agent to communicate between all parties in a timely manner then this will only cause delays and hassle leaving you with no option but to try to get things sorted out yourself. Avoid an understaffed estate agent and do not choose an agent based purely on price.

The most important thing you can do is to choose a great estate agent and a reliable solicitor other than that make sure that all the relevant property searches are up to date and have all of your paperwork prepared and ready with your funding in place in order to help the sale and purchase process progress quickly.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 320207 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Family living in the centre of Guildford

This spacious property is a 3 bedroom detached house and I like it because it is situated within a 2 minute walk of Guildford's historic High Street. It also retains some period features including an inglenook fireplace and wood beams in the lounge area.

Period features and an inglenook fireplace

Delightful conservatory connects the kitchen to the garden

There is a conservatory that connects the kitchen into the spacious, manicured garden which will be a wonderful retreat after a long day out at work.

Our friends at Chantries are marketing the property so why not arrange a viewing at the following website - https://www.rightmove.co.uk/property-for-sale/property-84614432.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

A fabulous house with a stunning outlook close to town

This is a modern home built in recent years but has the grandeur of a more established character property from former years. I like it because it is both stylish and practical situated in a curved terrace, built on 3 floors, overlooking a green with spectacular views over towards the town centre and Pewley Downs.

There are 4 bedrooms, 3 bathrooms and a large lounge area with a substantial kitchen with French doors leading out to a spacious conservatory, which then leads out into the garden.

This property is being marketed by our friends at Knight Frank so why not contact them to arrange a viewing now - https://www.rightmove.co.uk/property-for-sale/property-83775404.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Railwayman's Cottage Designed for Modern Living

This wonderful railwayman's cottage was built at the time when the railway first came to Guildford and so has considerable character yet it has been completely refurbished, including a new kitchen.

I like it because it is located directly opposite the mainline railway station and so would be ideal for a couple busy commuting up to London and wanting a guest bedroom, or even a nursery if planning to start a family.

The property is semi-detached with 2 reception rooms and 2 bedrooms so would also make an ideal multi-let property for young commuters happy to share. There is an upstairs shower room which is unusual for a property of this type.

For further information please visit https://www.rightmove.co.uk/property-for-sale/property-59400522.html. If you would like to arrange a viewing please contact the agents Winkworths but please hurry as the property has been reduced in price and will therefore prove to be popular.

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Character property in Ganghill

There is a straight path leading through the extensive lawn direct to the front door of this magnificent, character property.

Comprising 5 bedrooms, living room, drawing rooms, study and kitchen opening out into the orangery, it will offer accommodation for a large family and buyers wanting to enjoy spacious living. The orangery opens out to a large garden with an outdoor swimming pool.

Kitchen offers open access to the orangery

Back garden with swimming pool to delight the children

This exceptional property is situated in Ganghill, a quiet street with well maintained grass borders and at whose entrance stand a couple of ornamental stone features with tiled roofs. It is therefore located close to George Abbott school and Burpham village and within easy reach of Stoke Park and town centre.

Located a 10 minute bus ride from London Road station it is also convenient for those wanting to commute to London.

The property is being marketed by our friends at Knight Frank. Further details are available at https://www.rightmove.co.uk/property-for-sale/property-81655544.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207.

For a free instant online property valuation click here.

On the right track?

When visiting Guildford railway station at around 6 a:m, one recent morning, I was staggered to see just how busy the platform was for the next train travelling up to London Waterloo. It made me wonder a number of things. How early do these commuters have to get up in the morning; and secondly, have they saved time by buying a property to live in, situated close by to the station?

While we are fortunate to have two railways stations in Guildford plus further stations on the outskirts off the town in Shalford, Worplesdon, Farncombe and Godalming, most passengers travel from Guildford mainline station, possibly because it has so many connections to London and other major towns in the South East.

This is confirmed by a report published in 2015. This studied the number of passenger journeys in and out of the UK's railway stations. The busiest station in the country was London Waterloo with an estimated 99.2m entries and exits in 2014/15, followed by London Victoria with 85.3m suggesting the majority of commuters into London are likely to be living in the South East.

The report confirmed that the busiest station in Surrey (and 40th in the country) was Guildford with 8.1m passenger journeys. Woking was the second busiest (7,462,936 passengers), followed by Epsom (3,740,752), Redhill (3,629,342) and Staines (2,825,096).

So, if Guildford is the busiest railway station in Surrey and people prefer to have a short journey from home to the station how does this affect the property market?

Guildford mainline railway station

There are 54, 147 and 369 properties on Rightmove currently available for sale to prospective buyers looking to move to a location within 1/4, 1/2 and 1 mile of the station respectively, and therefore within a 20 minute walk.

There are currently 305 more flats and houses, of all types, for sale at least a 10 minute walk away (1/2 - 1 mile) than within a 1/4 mile walk, where there are just 56. This might be because much of this area within 1/4 mile of the station is occupied by Network Rail and the University of Surrey. There are more semi-detached properties on the market within a mile of the station than any other type of house, followed by detached and then terraced. One third of the properties on sale in this area are flats.

Zoopla quotes the average price for property in and around the railway station was £558,347 in August 2019 with flats selling for an average of £331,904 and terraced houses for £479,224.

This compares to the area 1/2 mile away from the station where the average price for property stood at £480,553 in August 2019 with flats selling for an average of £187,312 and terraced houses for £474,683.

The average price for property located 1 mile from the railway station stood at £400,884 in August 2019 with flats selling for an average of £331,904 and terraced houses for £402,368.

These figures therefore suggest that it it is more expensive to buy a property close to the station but gets cheaper as one travels further out from this location. This is possibly because there are fewer properties within the 1/4 mile distance so drives up price, or indeed buyers are willing to pay more for a property located close to the station.

However Zoopla also states that property values increased by 14.61%, in the last 5 years, for properties located more than 1/4 mile away from the station but only 11.52% for those located closer to the station.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 600840 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Well appointed house close to Stoke Park

This property is situated in a quiet wooded street located within easy reach of both state and private schools, opposite to Stoke Park and close to the town centre. It will therefore offer a wonderful family home with potential for extending subject to planning approval.

The state of the art kitchen has been extended to become the centre of the house with bi-fold doors opening out to a magnificent garden. There 4 bedrooms including one with en-suite and the decor is clean and modern. There is ample parking room too.

Kitchen with bi-fold doors leading out to a magnificent garden

Located 10 minutes walk from London Road station it is also convenient for those wanting to commute to London.

The property is being marketed by our friends at Collins and with the asking price recently reduced by £70,000 will sell quickly. Further details are available at https://www.rightmove.co.uk/property-for-sale/property-62730192.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207.

For a free instant online property valuation click here.

Should you invest in a 2 bed flat or house?

Many investors approach me wondering whether they should purchase a flat or house if their investment fund is limited. Some might therefore be surprised by the answer.

So what type of property would make a better investment if an investor wants to hold for the long term and therefore rent out to prospective tenants? The first question I ask them is what are they looking for from the investment - capital growth or a great yield? Answering this question will help an investor to figure out which properties to buy.

When considering 2 bedroom properties, figures for the last 10 years state that houses have risen in value by as much as 80%, in Guildford. Flats have risen but by a lower 67% so 2 bed houses have achieved a higher capital gain over this period to suggest they potentially make a better long term investment.

Typical two bed flats in Guildford

The average asking price for a 2 bedroom flat today is £334,950 but for just £15,000 more a 2 bedroom house can be purchased so it would appear wise to invest in a house.

The rentals for both types of 2 bedroom properties are also similar. A 2 bed flat is on average £1,275 pcm while a house is just £20 more at £1,295 pcm. A flat may however be slightly less financially attractive because the investor will need to consider the cost of the management fees to be deducted from the monthly rental income.

A typical 2 bed house in Guildford

The gross yield is therefore 4.6% and 4.4% respectively so as there is little difference between these figures this suggests that the investment decision may not be made on a financial basis.

The decision may be based upon market demand and perhaps the investor's preference towards tenant type. A flat will be more desirable possibly to young professionals starting out on the property market and because they are young may prefer a social life to having to spend time maintaining the property and a garden. There is a more plentiful supply of flats in the Guildford property market than houses too.

Houses may appeal more to couples, possibly with a child, because they will have the benefit of more space and a garden plus more privacy. They might also enjoy the pleasure of maintaining their property and the occasional DIY, at the expense of having a social life. 

As regards the investor it would appear that there is little to choose between both types of property. However investing in flats might now be the answer as there is not only more demand for them but with the advent of AirBnB, requests for short term accommodation particularly in flats, is on the increase. 

The potential rental income could therefore be significantly greater in this instance as the investor can charge more for short stays than they can for longer term tenancies. However there is a lot of specialist knowledge required to operate an AirBnB business so an investor would be wise to research this market place and the factors that they need to consider when operating short term holiday lets. 

So if you are considering such an investment decision or would like to have a chat in general about the Guildford property market please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk

How to invest in property with no money of your own

Offer a pot of gold! That is, an opportunity to make money.

Having spoken to many investors and property landlords in Guildford one challenge that they all face is that, from time to time, one will always runs out of money. Nobody has a bottomless money pit from which to extract more money for further investments however wealthy they might be.

So rather than stop investing and do nothing, how does one deal with this issue so that you can continue to profit from future property purchases?

Believe it or not, there are many people who do have funds to invest but their challenge is either a lack of time or insufficient knowledge to invest in property successfully. In that case how do we locate these individuals and what do we do to enable them to invest in us instead?

The answer is to form a joint venture. This may set up to fund investments or to leverage other people's skills and time.

There are a number of ways in which you can operate a joint venture. For example, you could work with a vendor to help sell their property in return for a fee or share of the profit that you generate for them. You could acquire funds in return for paying a fixed percentage interest rate over a period of time (like a loan); you could share a profit 50:50; or form a company to purchase a property, having a shares in the business.

In the instance where the investor offers a loan they are unlikely to have an interest in the property as they are using it only as a vehicle to enable them to earn a higher rate of interest on their money than they would otherwise do by leaving it in the bank. They have little risk as their loan interest will be paid whatever profits are made from the property venture. They would receive the loan amount back upon the property investor selling or refinancing the property.

If the investor becomes a joint venture partner they would have a shared risk and profit so are dependent upon the property investment being successful. Typically a Deed of Trust is taken out to protect their financial interest. The share percentage offered is subject to negotiation.

When setting up a joint venture it is wise to have a business plan to agree the deal with your jv partner. This will cover the nature of the project, the funds required and for how long, a cashflow and profit statement plus details of the exit routes available to the investor. 

The business plan should show examples of projects that you have successfully completed in the past, including photos and video plus the figures to show how you made money, to demonstrate your experience. This document should be submitted to a number of investors so you can attract several funding options so you can proceed with your project without delay and more importantly, without running out of money. It is always wise to have a contingency fund too.

So how do you find your investors? Well, as stated above, there are many people looking for a profitable home for their savings, inheritance, redundancy, windfall and even funds borrowed on the basis of equity in their own home.

Firstly, you need to speak with as many people as is possible, even if this is outside your comfort zone. Having acquired your business cards you should network in property and business groups. in addition to approaching everybody in your family and on your contact list. When meeting with professionals, including accountants, architects and solicitors ask if they have clients keen to invest in profitable ventures too. The most important question you can ask is "Who do you know who wants a better return on their money?".

Do not enter a venture unless you like and trust the person involved.

A legal agreement should always be written up by a solicitor. There should be a Heads of Terms to detail both party's requirements and responsibilities. There may be a Deed of Trust to protect the investor too. This puts their name of the property registration to provide them with further protection. As stated above an investor could have shares in the company through which the property is purchased and if not, possibly a first charge on the property to provide them with total security. Finally one should always complete due diligence, including taking out references, on the other party to satisfy the investor that their money will be invested wisely.

By having access to an investor's funds in advance of a project you are ready to go as soon as required.

Finally, some deals will face challenges. If so, it is always wise to be open and honest with the investor, keeping them updated at all times especially if an issue does need to be flagged up so that both parties can work on a solution to the problem. Very often, if you have sourced sufficient funds, there may be another investor waiting in the wings ready to take over the funding of your project, in the event the initial investor has to be paid off early.

Please note that I am offering my own opinion and not financial advice.

Secondly, when looking for a joint venture partner you should always ensure that when promoting any offer for an investment you are always talking with a person of high net worth, as defined under PS13/3 to comply with FCA regulations.

So if you are looking for a golden opportunity to invest for a higher rate of return please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Bad debt or good 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 a 20% deposit to buy a house and then a mortgage to fund the remainder of the purchase price. Yes, this does apply when buying your own residential property. However investment properties are different.

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?", do 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 this investment to afford a number of properties in order to spread your risk and secondly, to make your money work harder for you.

The second answer is that 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.

I am developing my expertise in property investment. I have done this by becoming a student on a 12 month Property Mastermind course to become educated and to grow my network of property investors and specialists.

This experience has enabled me to offer both friends and personal contacts golden opportunities to produce an effective means to enable them to achieve their goal to generate a higher rate of return without necessarily having to become educated in property investment themselves. These returns have far-outweighed those earned by leaving their money in the bank and they have had the pleasure of sharing in the success of a number of property ventures.

Want to achieve the same? Then watch this video No money, No problem.

Still excited? Call me to arrange a chat over a cuppa coffee to see what I can achieve for you.

Boxgrove Gardens developed for town and country living

This delightful development has been built on a former Department for Environment, Food and Rural Affairs (DEFRA) site. This development was a highly successful example of where disused public land can be developed to create desirable, well designed new housing for people to enjoy in an area where they want to live.

Honoured by a visit from David Cameron and Nick Clegg 

The Boxgrove Gardens development was held up as such a fine example, that it was selected as a location for both The Prime Minister, Rt Hon David Cameron MP and his Deputy, the Rt Hon Nick Clegg MP, to visit in 2011 to announce the Government's new Housing Strategy, underpinned by the new mortgage initiative Help to Buy, for new homes, providing 95% loan to value mortgages.

This 199 home sustainable development, less than a mile from Guildford’s High Street, is an award-winning example of mixed tenure with 70 homes built for shared ownership and affordable rent.

The stylish development has quickly become one of Guildford’s most desirable new neighbourhoods, with houses built with airy conservatories, timber detailing, spacious balconies and floor-to-ceiling windows surrounded by lush, green, modern gardens.

4 bed semi detached featured in a recent blog

The development comprises superb one and two-bedroom apartments plus prestigious three, four and five-bedroom signature houses, The centrepiece is Uplands House, a historic former country manor. This has been converted into stunning apartments overlooking the beautifully, landscaped gardens.

Uplands House converted into flats and adjacent to stunning gardens

Three large oak structures now enhance the grounds of Boxgrove Gardens thanks to the Council, artist Roger Day and developer Linden Homes. The sculptures, collectively called Connected Living, highlight the public right of way that passes through the site to Merrow Downs. Each sculpture has an opening that people can look through, leading them to the next sculpture and the countryside beyond.

Connected Living sculpture by Roger Day

It generally takes only a short amount of time to let properties on this stunning development. Tenants consider the proximity of both Merrow Downs and Guildford town centre to be an advantage. In one moment you are shopping in a bustling High Street and the next strolling through the countryside with views over Surrey and into West Sussex. A recent blog featured a four bed semi-detached property in Saxon Gardens on the market for £650,000. A three bedroom end of terraced property is currently available for an asking price of £499,995.  A two bed flat would be priced at around £325,000.

As the development was built only recently, in 2010, these properties will offer an excellent standard of accommodation built to recent building codes and so will rent out quickly. The rent that could be achieved for the four bed semi is £2695 pcm; £2,225 pcm for the 3 bed house and around £1,525 pcm for the two bed flats. This means investors can potentially expect yields of around 5% to 5.5% per year.

Whether you have already done a search for property, or are trying to figure out where to start, we’re happy to advise on properties before you buy, to let out. It’s in your interest that you purchase something that can let quickly, whether you are currently one of our clients, or not, so if you would like advice about what could make a good investment, please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Will flats in GU1 offer the best return?

Having considered a number of investment opportunities recently that have seen a potential return of more than 5% from purchasing a flat I thought we should examine the case for investing in flats, in Guildford, and in particular in the GU1 postcode area.

There is a considerable range of flats in GU1, from 1 bed to 3 beds, purpose built and conversions. There are developments built overlooking Stoke Park or The River Wey too, all offering pleasant surroundings and views over the town, yet within walking distance of shops and transport links.

The price range varies enormously too.  For example, a one bed flat in a cul de sac just off Manor Road was featured recently in the blog, because the asking price of £169,950 was considered to be one of the lowest prices to be paid for a residential property that it not a shared ownership, in Guildford, in recent times. However this was in the GU2 postcode area.

One of the lowest priced properties in Guildford at £169,950

At the other end of the scale one might expect to pay in excess of £1/2 million for a three bed purpose built flat in Printing House Square, just off Guildford High Street, as this is a prime location, in the centre of town where local services and shops are all very accessible. The flats in this development were also built to a very high specification.

High spec flats in prime location

In fact there are over 5,700 flats, in the GU1 postcode area alone. This represents around 39.77% of the housing stock in the GU1 postcode area, with the Guildford average being 19.51% compared to the national average of 17.36%. 

The average asking price of flats with one or two bedrooms in Guildford is around £269,950, which is nearly 3.45% higher than it was 12 months ago. 

You can buy a two bedroom flat, for example in the development on Jordans Close, Boxgrove for a very reasonable £250,000. If a landlord secures the typical monthly rental of £1,100 for a property there, they will manage a gross yield of 5.3%. 

This compares favourably with flats in the Printing House development where one might expect a gross yield of around 3.9%. This is perhaps the reason why many of these flats are let out as serviced apartments achieving £155 per night. Assuming these have (say) an 80% occupancy rate the monthly rental would amount to £3,720 and the gross yield would be as high as 8.5% which certainly would not be achieved when investing in flats elsewhere in Guildford.

Flats attract gross yield of up to 8.5%

Finally, let’s not forget about the potential increase in capital value of the property, which as is always the case, the dominating factor in the Guildford property market.

I was looking at the two bedroom flats in the Faraday Road development recently to discover that they sold for around £183,000, when new, in 2004. This value has almost doubled in the 11 years since (even allowing for the price dip 2007-8), as one was sold for £320,000 earlier this year. Prices will continue to increase for the foreseeable future now that we have a Conservative Government and therefore a pro-property party in power.

Flats in Faraday Rd nearly double in price since 2004

If you would like advice about what could make a good investment, please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk.

Does Farncombe offer better returns than Godalming or Guildford?

A client living in Godalming has asked what my thoughts were on the town's suitability as a place to buy to let.

The Godalming property market has been slowing down a little over the past quarter following a substantial rise in prices 12 month's ago. However the town is expected to benefit from a resurgence in house price growth in the forthcoming months, now that there is a new pro-property Government in power.

The best advice we can give to those looking to invest in property is our secret trick of the trade. You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.

When we put this to the test, we found that Godalming currently has an average property value of around £537,518 with the average salary being £30,118. This is a ratio of 1 to 17.85. Meanwhile in Guildford, where the average property price is £509,223 the ratio of property values to salary is 1 to 15.66, which suggests that property in Godalming is 14% less affordable than in Guildford.

The Pepperpot, Godalming

We also had a look at Farncombe and found the average salary there is £30,118 and the average property value is £291,448. This means that property in Farncombe is 47% more affordable than in Guildford, with a much lower ratio of 1 to 8.3.

This could mean that now is an excellent time to invest in Farncombe. The affordability ratio is lower; and prices are starting to recover though a little bit later than in both Godalming and Guildford. 

A 3 bed semi-detached property in Farncombe can be purchased for as little as £350,000 and let for £1,345 pcm to provide a gross yield of 4.6%. In Godalming £350,000 may only afford you a 2 bed semi-detached property, unless you can locate a 3 bed townhouse to buy, as these do tend to sell for a little less than conventional 3 bed properties. The rental for a typical 2 bed house in Godalming is around £1,195 pcm providing a gross yield 13% lower than in Farncombe.

Guildford might however offer the best investment opportunities. If we keep to the asking price of £350,000 there are several 3 bedroom properties that can be located in the Bellfields area, where one can achieve a rental of up to £1,500 pcm. This will achieve a gross yield of 5.1% which is 10% higher than what is achievable in Farncombe.

To discuss how much your property is worth or where you should make your next property investment in Guildford, call me for a chat on 01483 320 207 or sign up to The Guildford Property Blog. I should love to hear from you.

Monopoly in Guildford ... How would you play?

A couple of local landlords and I had a discussion about the property market in Guildford, when the subject of risk versus returns arose. We concluded that all landlords are different in the way they play the property game.

Guildford Monopoly Board

One group of landlords is interested in high returns, with a greater risk as regards to the quality of the tenant, so they much prefer the student market. They tend to invest in cheaper property where they can convert reception rooms into bedrooms to maximise their yields substantially.

Other landlords have a preference towards accepting a modest yield/return on their investment in exchange for an increased certainty of finding a quality tenant. They therefore tend to invest in smaller, terraced properties in the centre of town but away from the university, in order to attract the young professional tenant.

Landlords preferring the safest route typically invest in high quality houses within commuting distance of the town centre to attract families wanting access to decent schools including St Peters, in Merrow and George Abbot, in Burpham, for example. 

We also assumed that these landlords were more likely to be accidental landlords having to move away from their current home, for example, while working on a contract located elsewhere, here or abroad. They would therefore be letting out their own home and so they would be happier knowing that so long as their mortgage payments were being covered, they would gain potentially from relatively higher capital gains over time, because their properties were situated in the more desirable areas of the town.

We therefore determined that before these landlords started playing monopoly, it would be a good idea for them to have a game plan to determine what sort of property and area would best suit their investment objectives.

For a low risk investment they might buy in either Burpham or Merrow. Weylea Farm, Burpham, for example, is a popular area for families to rent property as it offers modern housing of all sizes, all built within recent years and located within the catchment area of local schools. If an investor were to purchase a 4 bedroom house in Selbourne Road, off Sutherland Drive, they would achieve an annual yield of no more than 4.2%. 

If a landlord does not mind a slightly higher risk of void periods, or a more varied quality of tenant, they are likely to be rewarded with a higher annual yield, of around 4.8%. This level of risk can typically be taken with Victorian terraced houses around the centre of town, along the Woodbridge Road. For example, Markenfield Road and Dapdune Road attract young professionals because there are local pubs including the Kings Arms and The Stoke, at the end of the road.

If they are a property investor attempting to maximise their rate of return then one of the most profitable areas in Guildford town centre, will be Guildford Park Avenue where annual yields of 7.9%, or greater, are achievable. However investing in this street will potentially be more of a risk as many of the properties here are houses of multiple occupancy. This suggests they have 3 floors, which many of the town houses on this estate do, and accommodate 5 or more people, from 2 or more families. 

This area is sandwiched between the university campus and railway station so attracts students who are often seen staggering home on the nearby Guildford Park Road, returning after a late night at bars and clubs on this side of town. This has created noise pollution which has therefore attracted the attention of the local council.

Secondly, this type of property will always remain an HMO and so never realise the level of capital gain that a property would do in Selbourne Road. Secondly, the property in Guildford Park Avenue is worth less at an average price of £314,788 compared to £523,791, for Selbourne Road.

The game of monopoly therefore very much depends upon a landlord's objective. Do they want to maximise rental income or capital gain? What is their attitude towards risk?

To discuss how much your property is worth or where you should make your next property investment in Guildford, call me for a chat on 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Should you invest in Guildford or a local village?

Many of our landlord contacts live in the beautiful villages surrounding Guildford (GU1) so are always intrigued to determine what the average property values are in both the villages and the town centre and how these could affect their annual returns/yields.

The average terraced house in Puttenham, for example, is worth £335,743, whilst terraced houses in Guildford are worth around 19% more with an average of £400,116. The same was found for the value of an average semi-detached house worth £407,829 in Puttenham, with the value increasing by 2% in Guildford at £416,684. For a detached house in Puttenham, you can pay approximately £792,969. This value is increased by 15% in Guildford, with average values of £915,704.

The Good Intent, Puttenham was first mentioned in the 1861 census.

If you want to invest in property located in the picturesque village of Shere then there is a premium to be paid. Terraced properties are worth on average £422,050 an uplift of 5% over prices in Guildford town centre; semi-detached properties attract a substantial premium of 29%; and detached properties are typically 16% more than detached properties in Guildford.

The White Horse, Shere

If you are a landlord looking to buy property to let, before you buy in Puttenham, Shere or any GU postcode village, you should consider the possible annual returns/yields in Guildford compared with these villages. The gross yields are typically quite low, at around 3.3%, in both Shere and Guildford where properties are typically more expensive compared to Puttenham where the gross yields are 15% higher at 3.8%.

It is quite clear that if you are looking for a high yield, Guildford or the local villages, are not the areas for you to invest in but if you are looking for capital growth the see-saw is definitely in your favour. Average selling prices in Shere have risen by a whopping 340% since 1995.

Furthermore your property will be surrounded by stunning scenery, and located close to popular scenic sites like Newlands Corner and the Silent Pool. The quaint picturesque village of Shere is popular with walkers as well as being a favourite location for filmmakers with scenes in Bridget Jones, The Edge of Reason and The Holiday being filmed here so you are guaranteed the high living lifestyle even though you may not be a Hollywood mogul in reality.

If you would like to know how much your property is worth or where you should make your next property investment in Guildford, call me for a chat on 01483 320 207

Which semi detached house should I buy in Guildford?

Many investors ask me “Which semi detached house should I buy in Guildford?” Would a 2, or a 3 bed semi detached property to rent out to tenants, be a better investment? 

The first question I ask them is what are they looking for from the investment - capital growth in the property or a great yield? Answering this question will help you to figure out which properties you should buy...

The average asking price of a 2 bed semi in Guildford is £375,000 today compared to £399,950 for a 3 bed semi. The 2 bed semi achieves an average rental price of £1250 per month compared to £1450 per month for a three bed semi. These 2 bed semis are typically found in the Stoughton Road area of Guildford just one mile from the town centre. Three bed semis at average asking prices are typically located on the roads coming off Worplesdon Road including Shepherds Lane, Sheepfold Road and Byrefield Road plus the Bellfields Estate.

That’s a yield of 4% for the 2 bed against 4.3% for the 3 bed. So surely, the 3 bed semi is the slightly better bet? Well it does offer a slightly better rate of return and should be easier to rent out (as it tends to be the preferred option for young and growing families). It will be easier to sell in the future because it will offer more space for only a little more money.

If one is looking for capital growth then semi-detached properties in Guildford have more than tripled in price over the last 20 years but detached properties have more than quadrupled so perhaps a detached property is a better proposition overall.

Want to have your property valued or to have a chat about Guildford property values? Call me on 01483 320 207 or drop me an email richard@guildfordpropertyblog.co.uk