Investment decision: Lindfield Gardens v Tormead Road

A landlord came to our office for advice recently asking whether he should invest by buying a five bedroom house in a more affluent area within a short distance of the town centre to let to a large family or to sharers. They were considering the residential area bordered by London Road, Epsom Road, Cross Lanes and Boxgrove Road.

We did some research and found a spacious sized five bedroom townhouse in Lindfield Gardens, with views over Stoke Park and on the bus route into the town centre and then onwards to the Surrey Research Park and Royal Surrey County Hospital.

This property was available for £575,000 and could be let out for £2,750 per month as a family single let to achieve an annual gross yield of 5.7%; or to young professionals (subject to receiving an HMO licence) for £3,850 per month, to achieve an annual gross yield of 8%.

Lindfield Gardens - townhouses

Properties in this area are very popular with families because there are a number of private schools located close by. These include Tormead, Lanesborough, Guildford High School plus George Abbot School so there is great demand from investors and tenants alike, making it a relatively good investment area within a desirable part of town.

Tormead Road is located within a 10-15 minutes walk of the town centre. London Road railway station is nearby, to provide links to both Guildford mainline and all stations to London Waterloo. Spectrum Sports Centre is located on the edge of Stoke Park and Merrow Downs are not far away, so active families are able to enjoy both town and country life here.

A place on which to reflect in Tormead Road

We then compared the property in Lindfield Gardens with a more spacious and therefore bigger five bedroomed detached house on Tormead Road to determine if the landlord would gain more financially, by buying there. The two streets are just five minutes walk apart so provide a useful comparison within the same area of Guildford.

A 5 bedroom detached house in Tormead Road was sold recently for £892,450 with a rental value of £3,350. While a more desirable road and mainly owner occupied it is unlikely to attract sharers as the nearest transport links may be considered too far away.

This means it is likely to be a family single let so while the rental will be £600 per month greater than the single let rental value for Lindfield Gardens it will not attract the premium rental for a shared property. The annual gross yield will be lower than the property in Lindfield Gardens, at 4.5% but the potential capital gain greater having invested more for the property in Tormead Road, will be greater.

Tormead Road

This shows that while properties can achieve a higher rent than others in the same geographical location it does not always suggest there will be higher returns for the investor.

More importantly an investor could purchase an investment property in this desirable area, where there is high demand for rental property, for a lot less than they might have thought possible all because they have done their due diligence on the type of properties available, and at what price, on various roads within a specific area.

In this instance our landlord will have the advantage of being able to offer his tenants the benefit of being located across the road from Stoke Park and on a major bus route, so both parties will be happy.

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.

Do detached properties in Burpham make good investments for Buy to Let?

Several property owners in Burpham have placed their properties on the market to sell, to allow them to move on. In several instances they have not sold, so they have decided to put the property on the rental market until they believe the current uncertainty in the market improves, to have a better chance of selling their home.

One of these property owners approached me to seek my advice on what they sort of return they might expect for their detached property in Great Oaks Park.

Great Oaks Park has some excellent properties for sale and rental

We therefore discussed two matters. Would it be worth keeping the property but using it as investment rather than a residential home? Secondly, how is the rental market performing in Burpham and therefore how much rental income might they earn, in order to cover their mortgage payments plus deliver a reasonable rate of return.

Firstly, we found that 335 detached houses have changed hands in Burpham since the year 1996.

Property values in Burpham have risen on average by around 463% over the last 23 years, but most detached properties in Burpham have beaten that rise.

When we look back to 1996, a three bedroomed detached property in Great Oaks Park sold for £124,000 in January, 1996 but was sold again for £640,000 in August 2014. This is an increase of 516%. A similar property has sold this year for £725,000 which equates to a current increase of 584%.

With excellent capital growth you would expect yields to be comparatively lower, but most four bedroom properties in the vicinity of Great Oaks Park achieve rents of £2,750 to £3,000 per month. This means annual yields can be around an attractive 5%!

It therefore confirms that "yes" property is always worth keeping for the long term, as an investment property, especially in Burpham, Guildford because a capital gain is always likely.

Rental values are likely to increase in Burpham

Secondly, the rental market in Burpham continues to thrive as the area is in the catchment area of excellent schools such as George Abbott. There is a parade of local shops and two supermarkets plus great access to the A3 trunk road between London and Portsmouth. This means that there will always be excellent demand for property in the village.

Rental prices are likely to increase as there are very few 4 bed houses in the area available to rent to satisfy the market demand in this area. Rental income will therefore continue to increase yet costs will remain low, assuming interest rates charged on mortgages stay low.

If you would like to talk to us about the Guildford property market and prices 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.

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

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.

Ex-council properties in Guildford ... are they good buy to let investments?

Have your property cake and eat it?

It is common knowledge that many landlords purchase their investment properties in Bellfields because they have found that these ex-council properties can achieve good, annual yields of around 7%. This is especially so if they take advantage of the typical layout and design of these properties. 

Most are built with an outhouse where coal would have been stored in the old days; or alternatively an outside toilet. Those investors that have demolished this outhouse have been able to build a substantial extension in its place to provide an additional utility room, toilet and reception room and if a two storey extension, an ensuite bedroom upstairs.

6 bed HMO delivers 14% gross yield

Investors in Houses of Multiple Occupation (HMO's) have taken this process one step further by modifying a 3 bedroom house on Hornbeam Road, for example, to convert a downstairs reception room into a bedroom to provide a total of 4 bedrooms and then extend out to the rear to enlarge the kitchen to create a larger communal area and two further bedrooms. They also managed to squeeze a shower unit into each bedroom to maximise their rental from the property. 

Their rental income amounted to a staggering £4,200 pcm, compared with a typical rental of £1,350 for a similar 3 bed property down the street that has not been extended. This investor would have paid (at current asking prices) £360,000, so is achieving a remarkable gross yield of 14%. This obviously does not account for the investment required to extend the property but no doubt the increase in property value (estimated to be £450,000) has enabled the investor to remortgage and therefore take most of his money out of the property to provide a very healthy return on cash invested.

While this opportunity will deliver an extremely healthy cashflow the next question to ask is "would the capital growth for this property in Hornbeam Road be typical of that experienced by Guildford property taken as a whole?"  

What is the capital growth in Grange Rd compared with Hornbeam Rd?

How does capital growth compare for these 3 bed houses compared with Hornbeam Rd?

When sold prices for Hornbeam Road are  compared with those for similar sized 3 bed semi detached properties in nearby Grange Road and Princess Mary Close, Queen Elizabeth Park, built in 2003, the following figures, suggest that the answer is a resounding "yes".

The growth in capital for the houses in Hornbeam Road was 200%, Grange Road was 169% and finally Princess Mary Close was just 132%.

While the ex council estate property may have been considerably cheaper to purchase 11 year's ago it's growth rate would suggest that the demand by investors and owner occupiers for these properties has increased and therefore pushed prices up over this period. However they still remain cheaper than properties in the surrounding areas and will therefore remain attractive to investors especially if they are keen to create an HMO as the landlord quoted above did so successfully.

It therefore does seem that you can have your property "cake" and eat it!

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

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

Living to the Manor "Road" born

This is  not quite a stately home but certainly a large property compared to those around it.

What is more important is that it is located in an area where there is a regular bus service into town and close to a major junction that takes you onto the A3 trunk road from London to Portsmouth. It is an ideal spot for walking to the main railway station. There is a parade of shops around the corner to save having to travel elsewhere for essential supplies.

Substantial property in Manor Road

As regards the property it has offering flexible and versatile accommodation including several rooms that could operate as bedrooms downstairs in addition the four bedrooms upstairs so would make an ideal shared accommodation to maximise rental income.

There is a shower room on the ground floor plus a family bathroom upstairs. There is also sufficient parking for 3 to 4 cars on the drive.

The property is being marketed by our friends at Callards, on Worplesdon Road, Guildford. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-39171168.html

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 or email richard@guildfordpropertyblog.co.uk

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

An extended property in Raymond Crescent

We picked this property out because it is located in Raymond Crescent, one of the most popular streets for both occupiers ad tenants in this area of Guildford. This is because it is situated across the road from the University of Surrey and is just 15 minutes walk to Guildford Railway station and then onto the town centre where there are many shops, bars and restaurants.

The A3 London to Portsmouth trunk road is nearby allowing a fast exit from Guildford if one commutes to local towns for work.

Unlike most properties on this road the house has already been extended to the rear allowing room for a bathroom and ensuite bedroom in addition to the conventional two bed arrangement usually found in houses on this street. There is a second reception downstairs too.

Extended property in Raymond Crescent

This will ensure there is sufficient accommodation for a family with two children or an investor wanting to provide up to 4 bedrooms for rental to sharers in order to increase his gross yield to a modest 6-7%, assuming current market rentals.

The property is being marketed by our friends at Gascoigne Pees, in Guildford High Street. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-52694860.html 

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 or email richard@guildfordpropertyblog.co.uk

An adorable property in Applegarth Avenue

You might ask why we describe this house as an "adorable" property but investors will jump on this opportunity very quickly. Why is that, do I hear you ask?

Well Applegarth Avenue is located within walking distance of the Surrey Research Park and the County Hospital. It is also within a relatively short walk of the University of Surrey campus too. This means that the demand from potential tenants will be high. The road is also very pleasant to live in because it is relatively quiet and most properties are well tended.

An ideal opportunity for an investor

Most importantly the property is being offered at a low asking price compared to those on sale in this area. This is likely to be because the property requires considerable modernisation but while doing this an investor could extend over the garage and to the rear where the current conservatory is situated (subject to the usual planning consents) to provide up to six bedrooms to maximise the rental income from the house.

If this is the case the potential gross yield will be in excess of 10%.

The property is being marketed by our friends at Callards, on the Worplesdon Road, in Guildford. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-39021273.html 

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 or email richard@guildfordpropertyblog.co.uk

It's a New Year so let's raise the roof!

The Christmas and New Year are a time spent planning for the future and one of the topics families talk about is their property and whether they should move home. The other option discussed is whether they could improve their lifestyle by redecorating, refurbishing the bathroom or kitchen; or even extending the property.

A number of commentators have remarked that the reason for the shortage of housing stock in Guildford, is down to property owners wanting to stay where they live because they like the area and most importantly, they want to benefit from the increasing value of their current home, rather than have to pay the relocation costs to move.

One example of an area where this has happened is the Fairlands Estate which comprises both houses and bungalows, built primarily in the 1960's. Fairlands is popular with an older population as many facilities are located on the door step. These include a parade of eight shops, a post office, a doctor's surgery, primary school, recreation ground and community centre. The area is situated away from more populated areas adjacent to farm land, but is still within a relatively short car or bus ride from Guildford town centre. 

Local shops on Fairlands Avenue

The bungalows were built with between 2 and 3 bedrooms but were quite cramped as many of the rooms, and especially the kitchen, were very small so they have been extended over the years to provide more living space to accommodate the many material goods that we now require to live in today's modern society. The Fairlands Estate is also a prime example of any area where many families have lived for many years so the accommodation has had to expand to accommodate them as they have grown.

Bungalows in Envis Way, one with a loft conversion

For example, some bungalows have been extended into the loft to provide room for a further one or two bedrooms and then part of a ground floor bedroom has been used to add more space to the kitchen.

One or two owners certainly must have had substantial dreams over previous Christmas and New Year holidays because they have removed the roof, built an additional floor and then constructed a new roof to convert their bungalow into a house. 

I have been asked by investors on a few occasions would it be financially beneficial to invest in a bungalow on this estate and then carry out these building works? How would this work affect the property value?

In Envis Way and Louis Fields, where most bungalows have been built on the Fairlands Estate, 2 bed bungalows have increased in value by 183%, from £199,500 to £364,950 in the last 15 years; 3 bed bungalows have increased by 145%, from £289,950 to £420,500; whereas the price of 4 bed bungalows  has increased by 200% from £224,950 to £449,500.

However those owners that have extended their bungalows from (say) a 2 bed to a 4 bed bungalow have seen their properties realise a 225% capital gain and those that have literally taken the roof off to convert a 2 bed bungalow into a 4 bed house would have benefited from a 276% gain as their property was worth £199,500 in 2000 but will sell today for £549,950.

If an investor had opted to rent their 2 bed bungalow out today for the market rental of £1,595 pcm they might achieve a 5.2% gross yield but an investor renting out a 4 bed house on the estate might only see only a 4.4% gross yield, if they manage a market rental of £2,000 p.c.m.

So if families had raised the roof in a previous New Year they would have been able to enjoy both a financial and lifestyle gain; but investors would have lost out, for the usual reason - Guildford offers great capital gains but poor gross yields.

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