Lassell Gardens, Maidenhead - 3 Bed Semi - Fancy a Project?!

Good Evening! This house has just been released by Connells but you're going to have to give them a call to find what they have in mind price wise....just to give you a quick guide semi's were being sold last year in the Lassell Gardens area for around the £490K mark....so today these properties would be on the market in excess of £500K. Thats a bit of an outlay considering the work required but as longer term investment I think its well worth considering - this riverside area in the Ray Park area is extremely popular so you can expect some real growth on this over the coming years....

There will be huge interest in this place so move quickly!

http://www.zoopla.co.uk/for-sale/details/37607830

Affordability of housing in Maidenhead

Talking to an elderly relative recently, he reminded me that in his day, you could have bought a property for the same price of what a decent second hand car would sell for today and that his father was buying property for the same price as a decent 50 inch LCD TV!  Now of course, these are only headline prices and we have had wage growth and inflation.  Interestingly, since the Second World War, property values in Maidenhead doubled in 1961, 1971, 1975, 1980, 1988, 2000 and 2006.

Looking at more recent times, since the start of the Millennium, these increases in property values have generated large increases in equity for many homeowners but on the other side of the coin also making housing unaffordable for other people.  It might interest readers to note that most of Europe experienced sharp increases in property values in the early years of 2000’s, with only Spain beating  us (although we know what has happened to the Spanish property market over the last few years!).  In the 2000’s, the British situation was different in two regards.  First the property value boom started earlier and saw more sustained increases, second, the regional pattern was fairly uniform.

However, since 2010, the regional pattern has been completely different in the UK.  Compared with  2007 (the last property boom), average property values today in England and Wales are 1.2% higher, whilst in Greater London, they are 35.7% higher, whereas in Maidenhead they are 2.17% higher. The London property market has been like a different country.  Looking specifically at Maidenhead though, it has continued for first time buyers to get on the housing ladder.  The best measure of the affordability of housing is the ratio of Maidenhead Property Prices to Maidenhead Average Wages, (the higher the ratio, the less affordable properties are).  

1997      6.04 to 1  (i.e. the average value of a Maidenhead property was 6.04 times higher than the average annual wage in Maidenhead)

2000      7.79 to 1

2002      8.31 to 1

2003      9.27 to 1

2007      10.55 to 1

2009      8.56 to 1

2012      9.96 to 1

Today    11.12 to 1

You  can see quite clearly, even though we had an improvement just after the 2007 property crash (i.e. the ratio dropped), in following subsequent years with Maidenhead house price’s rising but wages not keeping up with them,  the ratio started to rise.  This has meant there has been a deterioration in affordability of property in Maidenhead over the last couple of years.  This is one of the (many) reasons why the younger generation is deciding more and more to rent instead of buy their own house.  The local Council sold off council houses in the Thatcher years and for many on low incomes or with little capital, owning a home has simply never been an option.

With fewer people able to save up the deposit required by mortgage lenders, more and more people are looking to rent, this has also resulted in a change in attitudes towards renting over the last decade.  This delay in moving up the property ladder has driven rents up in Maidenhead over the last few years, as more people are seeking properties to rent.  All these things have combined to make the demand for rental property in Maidenhead rise. 

Boyn Valley Road, Maidenhead - 3 Bed Terrace - Popular Area!

We're heading off to Boyne Valley Road today. This place will gain some interest from property investors and landlords alike! Tenants love this area of town as you get a bit more house for your money. From looking at the pics theres some updating to do but probably well within the scope for any DIY expert! 

Its just been released to the market by Roger Platt for £325K - this seems like a fair deal to me and is in line with other houses in the area that have sold recently. 

Click here for a few more details.....

http://www.zoopla.co.uk/for-sale/details/37581563

Highfield Road, Maidenhead - 2 bed semi - Some Updating Required!

Andrew Milsom £425K


http://www.zoopla.co.uk/for-sale/details/37555584

Good morning all! Interesting place this one......Its certainly got potential to extend, but as I mentioned in my recent article if you are looking at the rental market then I wouldn't get to hung up on getting into the hassle and cost of this....a bit of sprucing up here and there and you are good to go!  

Its on the market with Andrew Milsom for £425K and with the popularity of 2 beds then you would have no trouble renting this out. I wouldn't bank on great yields as these would probably be below the 4% mark....but as a longer term investment you could expect some strong capital growth over the coming years. 

Take a look at the link below for more details:

http://www.zoopla.co.uk/for-sale/details/37555584

Why are less Maidenhead people moving house?

During my school years, my parents seemed to move every other year (or it seemed that way). In reality, looking back at the house moves, we actually moved three times before I left home. However, whilst my parents kept the removal van people in business whilst I was at school, from research I have carried out it shows things have changed considerably in Maidenhead over the last few decades, and interestingly, the trend is getting worse ... for the removal van people at any rate!

In Maidenhead, there are 25,407 properties. However, after we remove the 3,494 council houses, 3,652 privately rented houses and 301 houses where the occupants live rent free, that leaves us with 17,960 owned properties (be that 100% outright, with a mortgage or shared ownership). This means 70.7% of the properties in Maidenhead are occupied by the owner (the national average is interestingly 64.2%) but the number of people who have sold and moved house in Maidenhead, over the last 12 months, has only been 1,186. This means on these figures, the homeowners of Maidenhead are only moving on average every 15.14 years.

These are the reasons. Firstly, the cost of moving house has risen over the last twenty years. Secondly, with many re-mortgaging their properties in the mid 2000’s before the price crash of 2008, there is a reluctance or inability in a small minority of homeowners to finance a home sale/purchase, due to lack of equity. These are both factors driving fewer moves by existing homeowners.

However, the big effect has been the change in house price inflation. Back in the 1970’s and 1980’s, house prices were doubling every 5 to 7 years. Even in Greater London, with its stratospheric property price increases over the last few years, it has taken 13 years (August 2002 to be exact) for property values to double to today’s levels.

This change to a relatively low inflation Maidenhead property market (i.e. Maidenhead property values not rising quickly) is significant because the long term consequences of sustained low house price growth is that it eats into mortgage debt more slowly than when property price inflation is higher. Maidenhead homeowners cannot rely on inflation to shrink their debt in real terms as much as they did in say the 1970’s and 1980’s.

So what does this all mean for Maidenhead buy to let landlords? Well for the same reasons existing Maidenhead homeowners aren’t moving, less ‘twenty something’s’ are buying their first home as well. Maidenhead youngsters may aspire to own their own home, but without the social pressure from their peers and parents to buy their first property as soon people reach their early 20’s, the memory of the 2008 housing crisis and the belief the hard times either aren't over or the worst is yet to come, current and would-be homeowners are warming to the idea of renting. I also believe UK society has changed, with the youngster’s wanting prosperity and happiness; but wanting it all now... instantly... today... without the sacrifice, work and patience that these things take. As a society, we expect things instantly, and if it doesn’t come easy, doesn’t come quick, some youngsters ask if it is really worth the effort to save for the deposit? Why go without holidays, the newest iPhone, socialising four times a week and the fancy satellite package for a couple of years, to save for that 5% deposit if there is no longer a social stigma in renting or pressure to buy as there was... say... a generation ago?

Even though, in real terms, property prices are 5% cheaper than they were ten years ago (when adjusted by inflation), 14.4% of Maidenhead properties are privately rented (nearly double it was twenty years ago). As a result, the demand for rental properties continues to grow from tenants, meaning those wishing to invest in the buy to let market, over the long term, might be on to a good thing?

Shenstone Drive, Burnham

This placed was an obvious choice to bring to your attention! Its a great little location with walking distance to Burnham High Street and with the local schools just down the road this will drive interest from a host of tenants. Added plus points are thats is its a vacant possession and is already kitted out.....so you wouldn't have to lift a finger to get this ready for all them potential eager tenants! 

Although house prices have remained fairly flat in Burnham over recent months I wouldn't read to much into that....this will change so I reckon this is a pretty good buy for those investors in for the long haul! 

Its just come on the market with the Frost Partnership for £362,500 (a very precise valuation I might add!) 

Good luck but I think you might have to move quickly on this one!

http://www.rightmove.co.uk/property-for-sale/property-50545870.html

Norfolk Road, Maidenhead - 1 Bed Flat - Great First Time Investment!

Evening All, Nice place this and quite affordable for anyone looking to take the leap into property investment and becoming a landlord! Its within walking distance of Maidenhead train station which means this flat will be attractive to a small army of tenants...especially with Crossrail just around the corner its this type of property that will become even more desirable! 

You could probably make this more appealing by dulling down the black and white look (bit blokey!)....but apart from that this could be turned around and rented within a matter of days.

Its on the market with Roger Platt for £189,950....take a look at the link below:

http://www.zoopla.co.uk/for-sale/details/34233545

Cookham Rise - 4 Bed Cottage - Great Family Home!

Today we are off to the ever more popular Cookham! Maybe not one for the investors but this is a great family home in a location where places do not stay on the market for long! With property values going up almost 20% in the last 3 years in Cookham, and all the signs suggesting this level of growth can be expected going forward, then this place becomes and even better buy!

Its on with Pike Smith Kemp for £585K....take a look below for more details!

http://www.rightmove.co.uk/property-for-sale/property-34763277.html

Stanhope Road, Burnham - 4 Bed end of Terrace - Good all rounder!

Morning everyone. I think this place could appeal to both investors and owner occupiers alike. Realistically its probably more of a 3 bed than 4 bed, but its a nice spacious house that would make a great family home - with house prices going up in Burnham almost 12% in the last 2 years you could expect some good capital growth going forward too. 

The place also falls within the price category of many investors and landlords and thats why I think it will get some considerable interest....yields would be less than 4%....but then with strong capital growth you can't have it all!

Its on with Lambourne Carmody for £364,950....details below:

http://www.zoopla.co.uk/for-sale/details/37377446

Simpson Close, Maidenhead - 1 bed end of terrace - Investment Opportunity!

This tidy one bedder has just come on the market with Roger Platt for £245K - This is a great opportunity for anyone looking to move into the property game. At this price its not going to break the bank and is a low risk first time investment opportunity. You could expect rents approaching the £1,000 PCM which would give a healthy yield of near 5% - As I constantly mention in my articles, if you have a place that is spic and span you will get a great quality tenant and quickly! This place certainly ticks that box! 

Take a look at the link below for a further look!


http://www.zoopla.co.uk/for-sale/details/37368626

Maidenhead Buy To let – Bedrooms?

Last week, a landlord from Maidenhead emailed me to ask, after reading the Maidenhead Property Blog, if he should extend his terraced house making an extra bedroom in the loft. He had a builder friend who owed him a favour, and thought a good way would be get an ‘inexpensive’ extension.

Having more useable space is generally thought to be consistent with better quality accommodation and homeowners and tenants are prepared to pay for it. If you added a bedroom to a two bed terraced to make a three bed terraced, it will add 10% to the value of the property.  Turn a three bed terraced into a four bed terraced and 9% will be added to the value. Looking at semi detached properties, and turn a two into a three bed and 12% will be added to the value, whilst making a three bed semi into four bed will add 9% in value.

However, before you rush off to the planning department there are some important considerations, whether you are a homeowner or landlord.  What would be the cost of making that extra bedroom? The average value of a terraced house in Maidenhead is currently £370,300 whilst the average value of a semi detached house is £413,500, meaning to make money the cost of the extension would need to be less than £35,178 on the terraced property and £43,417 on the semi detached house. Talking to a number of trades people in the town, most are booking up into the New Year. Also, no matter how good a friend he was, I know of no builders that would charge as little as that. Maybe the builder was just thinking of a bit of pointing work on the chimney!

Well, that got me thinking about how bedrooms affected rental prices and rent-ability as well. Interestingly below, you will see that whilst bedrooms do have an effect on the rent that can be achieved and the rent-ability of the property – the difference does not warrant the expense, hassle and trouble of extending.

35.3% of the one bed properties on the market to rent in Maidenhead have a tenant with an average rent of £904 per month

29.5% of the two bed properties on the market to rent in Maidenhead have a tenant with an average rent of £1,172 per month

23% of the three bed properties on the market to rent in Maidenhead have a tenant with an average rent of £1,527 per month

26.3% of the four bed properties on the market to rent in Maidenhead have a tenant with an average rent of £2,355 per month

No, if you want to increase the value of your property, be you a Maidenhead landlord or homeowner, there are things that cost a lot less than building extra bedrooms. Spruce up the exterior, emulsion all the rooms, install fresh carpets and curtains. For homeowners, a matter of a few hundred pounds will add thousands whilst for landlords, these things can add an extra 10% to the rent that you can achieve.