Loveitts Newsletter Summer 2016 for TP.qxp_Layout 1

Loveitts Newsletter Summer 2016 for TP.qxp_Layout 1 13/06/2016 09:17 Page 1
Loveitts Investor Newsletter
Summer 2016
Head Office
29 Warwick Row, Coventry CV1 1DY
T: 024 7622 8111
E: [email protected]
loveitts.co.uk
Loveitts Newsletter Summer 2016 for TP.qxp_Layout 1 13/06/2016 09:17 Page 2
Landlord News
Paul Barnes
2016 - THE YEAR WHEN LANDLORDS ARE TARGETED?
Recent government changes have prompted a major re-think for landlords but how badly
will these changes affect landlords? Changes in tax and legislation such as Right to Rent
checks means a landlord has far more to think about in terms of obligations and costs.
Those who ventured into property investment a number of years ago will probably feel
secure in their investment. Providing they haven’t re-mortgaged their property, their yields
are expected to continue to provide a reasonable return. According to Rightmove, around
25-30% of landlords in the UK rent their property privately. With more onerous obligations
for landlords, landlords may consider using an agent to ensure that they are covering all
bases.
For new investors who are thinking about venturing in to the buy-to-let market, the added
tax costs and legal obligations may put people off as yields will be squeezed. But the big
question for many is where else can you benefit from returns as high as a property Buy
to Let. This will be key to see if the buy-to-let bubble will burst or simply slightly deflate.
THE IMPORTANCE OF GETTING THE RIGHT ADVICE…
With the changes that have been made to the buy to
let market in recent months it is important to look at
every opportunity to maximise the yield that your
investment harvests. That is why Loveitts works in
conjunction with the Mortgage Advice Bureau who
have access to over 90 mortgage lenders and
thousands of mortgage products. Our aim with this
partnership is to ensure that our clients get the best
advice from a mortgage expert who can find the best
financial solution for investors. Our advisor, Harmeet,
has exceptional knowledge of the buy to let market
and is on hand to guide buyers, accordingly.
Give us a call on
02476 258421
and book a consultation
to make sure you are
getting the right advice.
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Right to Rent checks
Is your agent making the right checks?
1. Before allowing an adult to rent your property they must have documents
proving their right to be in the UK. This could include a UK passport,
Registration Certificate or permanent residence of EEA or an EEA family
member Permanent Residence card.
2. You need to ensure the property that the tenant lives in is their only or main
home. Proof of this could be showing that they live there most of the time.
3. You need to check that the persons’ right to be in the UK will continue
throughout the tenancy.
4. Should you discover in a follow up check that your tenants’ right to be in the
UK has expired you will need to make an official report to the Home Office.
5. Ensure copies of the documentation are made and record the date.
To ensure that you are covered as a landlord and not leaving yourself liable for a
large fine, speak with Loveitts team who can provide a detailed referencing
service.
ORT
P
PASS
APPR
OVED
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GIVING YOUR RENTAL PROPERTY A SPRING
SPRUCE UP TO ATTRACT NEW TENANTS
All letting agents know that one of the realities of life in the private rental sector is that
properties need updating and refreshing from time to time. Having been lived in by a
number of different people for a long time period can mean that properties end up looking
tired and worn, and in order to keep attracting new tenants, it's important that they are
given the odd new lick of paint and quick breath of fresh air.
Why not use this spring time period to do a little more than this though, giving a property
a more extensive refurb and a little redecoration can mean you widen the appeal and
bring in more prospective tenants than you may have done otherwise. We take a look at
a few of the considerations owners and agents can make this spring in this regard.
Colours
You might be feeling a bit creative when the time comes to give the
home a new lease of life. When it looks a bit drab and dark, it's only
natural to want to inject colour and vibrancy into the home, but
remember, getting too ambitious can cause problems when it
comes to letting, potentially turning away prospective tenants.
Bright colours and ambitious wallpapers simply aren't for everyone,
and whilst these can look great, it's best to play it safe with rental
properties. You want to maximise appeal, not limit it, and this is best
done by choosing neutral colours, which have the best chance of
not offending anyone and making sure your property comes across
well to the majority of potential tenants.
Flooring
When you're giving any home a revamp, the flooring can be a great
place to focus, and this is never truer than when you are looking at
improving its rental capabilities.
Carpeting is a bit outdated and old fashioned now, but many
homes will still have carpets installed from a few years back. If a
rental property is between tenants, however, it's the perfect time to
get the carpets lifted and replaced with relatively cheap laminate
or hardwood floors. Not only are these more stylish and likely to
appeal to your market, but they also enhance that illusion of space
that makes a property so desirable.
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Where to focus?
Knowing where to focus your attentions when carrying out a revamp
is vitally important. It's unlikely any one agent will want to go to the
bother of revamping a whole property and decorating every room
in one fell swoop, so knowing which rooms are best at attracting
tenants, and which have the best impact on sentiment is vital.
Kitchens and bathrooms tend to be the rooms that have that real
wow factor in this regard. New fittings, tiles and floors can really
add that little shine to an already fantastic property, and by making
changes to your bathrooms and kitchen, you give prospective
tenants even more reason to move into your home.
Loveitts on the road..
Loveitts are delighted to have two branded
Loveitts taxis driving around the city,
ferrying passengers from A - B. It’s a great
analogy for a good estate agent, a service
that takes you from one point to another
just like an estate agent should take you
from one home to the next while you sit
back and relax. Stress free sales are
something that you hear very little of
nowadays but with Loveitts you can be
sure that the right service is available to
you. Whether you are looking for a
traditional sale and want a high quality,
innovative agent to take you through the
process or the guaranteed sale through
our terrific auctions team, or if you are
looking to rent out a property then Loveitts
have you covered! Give our team a call on
02476 258421 to discuss your property
requirements...
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PROPERTY
AUCTION
MARKET PLACE
NEWS
There have been many changes within the
Auction marketplace over the past few
years, which have affected both sellers and
buyers, and more recently the ‘hot topic’
has been changes in stamp duty and of
course the referendum.
It has always been the case that uncertainty
about the economy causes uncertainty in
the property market, and yes perhaps some
sellers and buyers decide to hold off
making big decisions until they feel more
comfortable. The Auction market place in
Coventry and Warwickshire has noticed
there has been no slow down however, and
whilst there are some buyers and sellers
postponing decisions, this is balanced by
new buyers and sellers needing and
wanting to buy and sell now!
There have been reports in the press that
the changes in stamp duty would have a
big effect on investors wanting to buy and
there would be a surge in purchasers
wanting to complete before the end of
March. This indeed was the case, and
investors were pushing their solicitors to
complete sales in a timely manner to ensure
that they avoided the extra tax. Solicitors
were swamped, and certainly in Coventry
and surrounding areas solicitors were
having to work additional hours and pull in
extra resources to cope.
Since the changes in Stamp Duty, Loveitts
Auctions have certainly not noticed any
slowing down or major changes in the
market. In fact the Spring Auction was full
to the brim of purchasers, wanting to buy
for investment either for the first time, or to
increase their portfolio. The Summer
Auction is also looking good for the number
of Lots coming to the market, with a mixed
bag of residential, commercial and land
opportunities.
In the May Auction there were some
properties that sold for well above the
Guide Price range, including 421 Ansty
Road, with a Guide Price of £80,000 £100,000 and sold under the hammer for
£126,000. A property on Queensland
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Avenue had been on the open market and
had not sold, with a tweak to the Guide
Price the hammer price was at the price it
had been on the open market for!
Sally Smith, Auction Manager and
Associate Director said "All our buyers
exchange contracts on the fall of the
hammer, they pay a 10 per cent deposit and
completion usually takes place 28 days
later. It's a quick and transparent process
which means that only six - eight weeks
after instruction the money could be
banked!”
"We agree a reserve price with all our
sellers; a confidential amount that the
property cannot sell for less than. If that
price is not made in the auction room, it is
not sold. However, in most cases this price
is far exceeded thanks to competitive
bidding from our buyers."
For any queries on the process of selling or
buying at Auction please do not hesitate to
call Sally Smith on 024 7652 7789.
S
D
L
O
D
L
SO
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INTERESTING FACTS
The nation spent the equivalent of
2000 YEARS
browsing online in January
Rightmove’s busiest ever day was
26TH JANUARY THIS YEAR
79%
of all Help to Buy
completions are from
first-time buyers
Over HALF of the traffic on Rightmove
comes via a mobile
Rents have risen
3.8% 0.5%
NATIONALLY
IN LONDON
Over the last 12 months
All stats are taken from Rightmove
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Zoë’s Place Charity Events
Kilimanjaro
In October 2016, our own Scott Lindley will be climbing Mt.
Kilimanjaro, in aid of our chosen charity for this year, Zoë’s
Place Baby Hospice in Coventry. Zoë’s Place is a 'baby only'
specific' hospice that provides palliative, respite and end of
life care to babies and young children from the age of 0 to
5 years of age, suffering with life limiting and life threatening
conditions. The charity receives hardly any funding from
National Government and needs in excess of £1m a year
to keep its doors open. The funding they receive
comes solely from the kindness and generosity of the
general public and through fundraising events such as the
one Scott is undertaking.
Please support Scott in his challenge in raising as much
money as possible for Zoë’s Place by sponsoring him at;
www.justgiving.com/Scott-Lindley
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Charity Golf Day
On Wednesday 8th June 2016 Loveitts organised a charity golf day with all proceeds
going to the baby hospice in Coventry. Following on from the success of last year’s
event, eighteen teams took part at the Warwickshire Golf Club, Leek Wootton. The
day was a huge success with a number of local businesses and professionals from
Coventry and Warwickshire coming together for the very worthy cause.
Zoë’s Place Mardi Gras
On the 20th May the Zoë’s Place Mardi
Gras ball took place at Coombe
Abbey, Binley and Loveitts played a
key part in raising money on the night.
Kendall Head, auctioneer for the firm,
successfully took over £16,000 of bids
from the floor for a range of items
ranging from a signed Jack Nicklaus
putter, lunch at Heston Blumemthal
restaurant in London to a VIP Paradise
Holiday for two people in Bali. The
event was another reminder of the
inspirational parents and nurses who
are committed to the hospice. In total
over £60,000 was raised on the night.
Loveitts Newsletter Summer 2016 for TP.qxp_Layout 1 13/06/2016 09:17 Page 11
Profit from our experience Let Loveitts manage
your investment
What can Loveitts arrange for you?
Electrical Safety
Certificate
Energy Performance
Certificate
Landlords Gas Safety
Certificate
Tenancy Agreement
Landlords Property
Insurance
Property Repairs
Schedule of Condition
Rent Collection
Change over utility
companies
Inform Council Tax
Office of new occupants
Sell it, Let it, Protect it!!!
Loveitts Ltd is a Designated Professional Body (DPB) licensed firm
under the provisions of RICS Regulation.
loveitts.co.uk
Loveitts Newsletter Summer 2016 for TP.qxp_Layout 1 13/06/2016 09:17 Page 12
Recently Let
LET
LET
LET
LET
LET
LET
LET
LET
If you are looking to sell or let and would
like a FREE market appraisal, please contact
us on 024 7622 8111
Head Office
29 Warwick Row, Coventry CV1 1DY
T: 024 7622 8111
E: [email protected]
loveitts.co.uk