A Little Extra Golden Years – Properties with Annex – Our 20-Page Retirement Accommodation P6 Property Supplement P25
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delivered to your door propertyYour paper, local London & Southern Edition May 2016 BUY-TO-LET P3 LONDON NEW HOMES P18 MORTGAGES P23 INTERIORS P62 GARDENING P66 Canaletto – property of the month P8 A little extra Golden years – properties with annex – our 20-page retirement accommodation P6 property supplement P25 Your first stop for Surrey New Homes www.curchods.com What House DPS.indd 3 24/03/2016 15:59:40 London, Kent, Sussex, Surrey, Hampshire, Isle of Wight – Find your new home at Whathouse.com Find your new home at whathouse.com/new-homes buy-to-let 3 Mortgage Advisers What makes a good buy-to-let? Welcome! eorge Osborne’s latest Before you plunge into the buy-to-let property market, there are a number of Budget surprised many of us by hardly touching considerations you should take into account upon the property market, Gbut this year has certainly seen a LOCATION TYPE OF PROPERTY This dramatically affects your sums when great deal of change based on his working out what you’ll charge and what The type of buy-to-let property you policies from the last couple of years. A good location is one where people rental yield you might expect. purchase is related to the type of tenant The first quarter of the year saw want to live. It doesn’t have to be you’re looking to target. Find a type of a surge in activity in the property the cheapest or most expensive area. property which will appeal to the type PROPERTY and mortgage industries as investors It’s an area that has the most of tenant you’re wanting to move in. MANAGEMENT tried to beat the deadline before a potential for the future. The type new 3% surcharge on stamp duty One type of property always considered Don’t underestimate the work that’s of property you’re looking for, as on investment and second homes a good investment for buy-to-let is involved in being a landlord. You are well as the type of tenant you want, took hold on 1 April. new builds. There are many benefits in responsible for repairs and the general should also influence your choice of The new charge will put buying a new-build property for buy- upkeep of the property, which can add location. thousands of pounds onto the bill to-let such as there being generally less considerable strains to your budget. for such a home and affect the repairs to carry out. These new-build It’s again why new builds are worth RENTAL YIELD return on investment, its purpose mong the topics you’ll properties are also attractive to a wide looking at for buy-to-lets. You also of course to reduce the number need to think about Get an indication of how much range of potential tenants. have the option of paying an agent to of investors and leave properties carefully are budget, return you’ll get on your investment. look after the running of your flat for available for owner-occupier buyers. location, your income You can initially do this by TYPE OF TENANT you. Way up the pros and cons of self- The situation wasn’t helped by expectations, the type working out the rental yield. The What sort of tenant are you looking to managing or employing a property a degree of uncertainty about the ofA property you might buy, what rental yield is the property price move in? A family, single professional management company. finer details of the new system, kind of tenants you aim to find, the divided by the yearly rent. For or student? Deciding this will also help about which transactions would be costs of buying, who will manage the example, the rental yield on a determine what are the best buy-to-let EXIT STRATEGY covered and which might be exempt property and your exit strategy for £250,000 property that has a weekly properties to invest in. Plan your ‘exit strategy’ for if and when from the financial penalty. your investment. rent of £425 would be 4.4pc. This is you plan to sell the property. When you It has recently been announced, for £250,000 divided by £22,100 (£425 STAMP DUTY LEVY purchase a buy-to-let, think about when example, that properties with separate KNOW YOUR BUDGET x 52 weeks). Generally, landlords s Stamp duty on buy-to-let properties is you may sell the property. Whether it’s additional accommodation on-site hould look for a minimum rental income now higher than conventional residential Before looking at any buy-to-let initially seen as a pension plan or a place (see our Six Appeal feature) will not of 125% compared with the monthly properties. From April 2016, private properties to invest in, work out to hand down to the next generation, be subject to the stamp duty as first mortgage repayment. You should landlords have to pay an extra 3% stamp your budget. The more honest and think about the long-term and when to thought, which will be a relief to those also take into consideration capital duty when they purchase their property. realistic you are about what you get out. The desirability of a property (albeit affluent homebuyers) purchasing growth, the potential for increase in For example, for a £275,000 property the can afford, the easier and quicker through its condition and location will a property which offers independent the property price or monthly income. stamp duty rose from £3,750 to £12,000. choosing a buy-to-let property will be. be just as relevant then as it is now. living for a family member. Many parents intending to purchase a second home that could provide a separate second home that A win for WhatHouse? at the First could function as an inexpensive stepping stone to homeownership for their children will, however, find their bills soaring, which is Time Buyer Readers’ Awards undoubtedly a frustration when the ultimate purpose is a good one. The notion of independent living is We’re delighted to be recognised by readers at this prestigious industry event of course at least as important to older people as those in their late teens and he monthly WhatHouse? coming months. twenties. The lack of sufficient housing property newspapers have “A big thank you to all the readers in this country has led to pressure on won a ‘highly commended’ who took the time to vote for us.” older property owners to free up large prize at the respected Lynda Clark, editor of First Time “empty nest” family homes, though of First Time Buyer Readers’ Buyer Magazine, says: “Once again course there are practical advantages TAwards, held last week at the Waldorf we are delighted to have celebrated for them to move somewhere more Hilton in the West End of London. the outstanding work that is suited to their situation once children The free newspapers – which being done by so many companies have set out on their own lives away are published in two editions and and individuals to give first-time from the parental home. distributed by the Royal Mail to ABC1 buyers a helpful boost onto the The secret of success for the households and at selected Greater housing ladder. The awards are always retirement developers you’ll see in this London outlets – total 420,000 a highlight of my year as they remind month’s supplement is to show how per issue and cover the southern me of the great lengths that many older people can successfully adapt Home Counties, the capital and the companies go to in order to support to the changes that their later years West Midlands. The publication made those just starting out on their will require, yet retain the security of the shortlist (decided by a panel of homebuying journey, a time when owning their own bricks and mortar expert judges) with a number of most help is required. while these changes happen. major competitors, including two “Buying a first property can not It will be interesting to see how national brands. only a daunting experience but, as the government’s continued focus Editor Keith Osborne, who with many will find, the lowest rung of the on the aspirations of the younger sales manager Bob Faulkner received ladder can also the most financially generation will live with the growing the prize from host Nicki Chapman, difficult - especially for those without and contrasting needs of a longer- says: “We are absolutely delighted any help from the bank of mum and living senior sector with its own to win the ‘highly commended’ dad. The awards are a celebration of voice and financial power. prize from the readers of First Time those who go that extra mile to help Whatever your own home situation, Buyer magazine for Best Property less experienced buyers into a home we hope you enjoy this month’s Supplement. It’s a testament to the of their own and my congratulations largest-ever edition of WhatHouse? hard work of our team, and their goes to everyone involved.” efforts against some very high-profile WhatHouse? was joined on the list brands. The judgement of readers and of winners by a number of prestigious Top: The awards at the Waldorf Hilton homebuyers themselves is particularly industry names, including Lovell, Taylor Keith appreciated, and we hope we can Wimpey, Peabody, Metro, Nationwide, Left: Keith Osborne (second left) Keith Osborne, editor. and Bob Faulkner (right) receive the [email protected] continue to provide interesting articles Halifax and the Private Developer of award for WhatHouse? to buyers and homeowners in the the Year, Hodson Developments.