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

Clandon Park and the devastation created by the fire last year

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

Potential to extend in Bryanstone Grove, a quiet road

This property impressed us as it offers a reasonable amount of accommodation for the price and is located in a pleasant, quiet road but not far from the Worplesdon Road. This will allow the potential buyer to live in a pleasant area on the edge of Guildford with easy access to wooded areas adjacent to the local countryside yet be within a reasonably short travelling distance of the town centre.

Potential to extend subject to planning permission

The property next door has been extended substantially already so the opportunity to extend out from both floors to the rear may be restricted due to lack of light but there should be the opportunity to extend the ground floor and then out to the side to enable the bathroom to be moved upstairs.

Otherwise the house is offered in a reasonable condition and should offer an investor a potential gain or a growing family the chance to increase their accommodation, as they grow. It is for these reasons that we anticipate this property will attract a lot of interest.

The property is being marketed by Seymours, on the Worplesdon Road, in Guildford. They are very familar with the area and will therefore be able to provide a lot of useful advice. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-39054912.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

Corner plot in Yew Tree Drive

This property is located in one of our favourite roads on the Bellfields Estate, just over a mile from Guildford town centre. The area is very popular with landlords and investors because it offers one of the highest yields in town.

This property is reasonably priced but as it is situated on a corner plot has huge potential to extend to the side (subject to planning) to offer 2/3 additional rooms to rent out.  

Potential to extend to the side subject to planning consent

There is a bus into Guildford Town centre and the A3 trunk road provides a link to both London and Portsmouth. Guildford College is nearby and the University is within walking distance so there will be demand from students as well as young professional tenants to rent a room here.

So for landlords looking a gross yield of more than 10% and a capital gain this property is ideal and therefore likely to be very popular especially as there is no onward chain.

The property is being marketed by Hipps, in Worplesdon Road, Guildford. They are very familar with the area and will therefore be able to provide a lot of useful advice. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-57145997.html

If you would like to have a chat about property prices in Bellfields, 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

Room up top in Park Barn Drive

Like buses these ex social houses extended with loft rooms to provide additional accommodation seem to be few on the ground and then they come along two, or three, at a time.

We have just spotted this beautiful example priced very competitively. Examples of these with the standard three bedrooms only, have been priced at the same asking price in recent months.

4 bed house with loft conversion in Park Barn Drive

The property is in excellent condition. The loft conversion has provided a stunning master bedroom which is a good size with a modern en suite shower room plus views looking far over Guildford. In addition to the remaining three bedrooms and two reception rooms there is a utility room and a downstairs WC.

The property is in a popular area for students and employees working for companies on the Surrey Research Park so the house should rent out for around £1,795 pcm so the gross yield should be around 5.7%. If the rooms are rented out separately an investor should see a healthy return of around 7-8% gross yield.

The property is being marketed by Gascoigne Pees, in Worpesdon Road. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-56625341.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

Room for expansion in Watford Close

This light and airey property is ideally located for business executives having to rush off early in the morning to catch the train from London Road station (only 10 minutes walk away) to the City; and wanting an excellent education for their children, available at one of several local private schools. Nearby schools include, Tormead, Guildford High School, Lanesborough, RGS, Boxgrove, St Peters, and George Abbott.

The detached four bedroom house is tucked away in a leafy cul-de-sac, in "The Golden Triangle" between London Road, Epsom Road and Boxgrove Road. It includes a garden which allows scope to extend the house subject to the usual consents. 

It is located just over half a mile to the Upper High Street where there are numerous shops, cafes, restaurants and bars clustered around the town centre and the historic cobbled High Street. Entertainment and sporting facilities for the family include the Surrey Sports Park and the G Live entertainment venue, amongst others. 

The property is unlikely to deliver the property investor a good yield but it does offer potential for capital gain if extended to a 5 bedroom house so is likely to realise a lot of interest.

The property is being marketed by Romans, in the High Street, Guildford. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-57081389.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

A lovely family house in Juniper Close with potential to extend

Welcome back to a New Year and it looks like it is going to take off from where last year finished off, with a vibrant sales market.

This particular property stood out from others spotted today as it offers everything an investor should require in an investment property. Situated in a cul de sac location and in need of cosmetic updating this semi detached home has potential for an extension to the rear or over the garage for a growing family to move into; or for a landlord to house more sharing tenants. 

The property is a solid ex social housing property with the typical configuration of two reception rooms and kitchen on the ground floor but the addition of a shower room and a conservatory to look out of and into the huge garden. There are three bedrooms plus separate w.c. and bathroom upstairs. This property unlike many on the Bellfields Estate also includes a garage.

Potential to extend over the garage

The house is located on a quiet street at the far end of the estate so will be a quiet and peaceful location in which to live. However there are local bus routes into Guildford Town centre plus access to the A3 within 5 minutes drive of the house.

An investor is likely to realise £1,695 pcm for a property like this and so the gross potential yield will be 5.5% but higher if an additional bedroom is added by extending over the garage. As this property offers huge potential is it is likely to sell fast.

The property is being marketed by our friends at Hipps, whose knowledge of this area is extensive. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-52923671.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