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Category: investment deals

Buy to let investment

Goulden Road – West Didsbury

Gascoigne Halman are currently advertising a one bedroom apartment on Goulden Road at £180,000 with a tenant in situ who is currently paying £695 pcm click here for the property details.

The property is presented to a reasonable decoration throughout and could potentially achieve up to £750 pcm which would give you a rental return of over 5%.

Goulden Road is located close to the fashionable ‘Burton Road’ and offers a wide array of Independent bars, restaurants and shops.

The West Didsbury Tram stop is minutes walks which is popular for working professionals travelling into Manchester.

Check out my video here in relation to the property.

If you wish to discuss a potential investment call me at the Didsbury office on 0161 249 5160 or 07584 038 497.

Thanks Moharram

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Didsbury Home Buyers & Landlords Set to Save £1,446,030 in Stamp Duty Over Next Nine Months

The British are infatuated with owning their own property and politicians know that. Margaret Thatcher used it as a vote winner in 1979 when she allowed council house tenants to buy their own home. Coming to the present day, Boris Johnson’s Conservative government have anxieties that the Brits have not been buying nearly enough homes lately and, as with all countries in the world, the British property market was put ‘on ice’ for several months to help contain the Coronavirus, exacerbating the problem. 

The Chancellor, Rishi Sunak, announced on Wednesday plans to boost the property market by momentarily scrapping Stamp Duty Tax (a tax paid by homebuyers) when they buy a property that costs less than £500,000.

Interestingly, Stamp Duty was originally introduced in 1694 as a way to raise funds for The Nine Years’ War (1688–1697) against Louis XIV of France and applied to property and some legal documents.

Why is this important? Well the Government recognise that when the property market is working well, the economy also tends to work well, yet one of the barriers to people moving home is Stamp Duty. Even before Coronavirus, Brits were moving 40.21% less than they were at the start of the millennium, and now with this dreadful situation, the natural reaction is for people to stay put in their own homes, meaning another potential nail in the coffin for the economy.

Stamp Duty has raised not an insignificant £166.53bn since 1998, impressive when you consider the NHS costs £129bn per annum. Looking at more recent figures, the Government currently raise £1.045bn per month from Stamp Duty Tax and this statement will remove a good chunk of that from the Chancellors coffers each month, yet the Government knows a healthy property market will help the wider economy.

As Stamp Duty is a transaction tax, it restricts labour market mobility, making people who are thinking of switching jobs think twice before moving. Stamp Duty also holds back elderly homeowners from downsizing to smaller homes, which is an issue for the UK, as we don’t have enough homes to meet supply and also curtails first time buyers as it forces them to use some of the savings on the tax, as opposed to using for a deposit.

Before the changes, the Stamp Duty thresholds were as follows: 

  • Zero percent up to £125,000
  • Two percent of the next £125,000 (the portion from £125,001 to £250,000)
  • Five percent of the next £675,000 (the portion from £250,001 to £925,000)
  • Ten percent of the next £575,000 (the portion from £925,001 to £1.5 million)
  • 12% of the remaining amount (the portion above £1.5 million)

and between the 8th July 2020 and 31st March 2021

  • Zero percent up to £500,000
  • Five percent of the next £425,000 (the portion from £500,001 to £925,000)
  • Ten percent of the next £575,000 (the portion from £925,001 to £1.5 million)
  • 12% of the remaining amount (the portion above £1.5 million)

Landlords and buy to let landlords will also benefit from these reduced rates yet will still have to pay their additional premium for second homes (as they have since April 2016).

To give you an idea how significant this is, if these rules had been in place exactly a year ago for Didsbury properties purchased under £500,000 (i.e. between the 8th July 2019 and 31st March 2020).

Stamp Duty would not have been paid on 387

Didsbury (M20) properties, worth in total £106,321,300

Anyone buying any home in Didsbury over £500,000 are also winners in this, as they will save having to pay the first £15,000 in stamp duty (under the old scheme). This is because during these 9 months, stamp duty is only paid on the difference over £500,000 (so if you buy a property for say £620,000 – one only pays the stamp duty on the difference between £620,000 and £500,000 i.e. £120,000).

I’m all for reducing Stamp Duty, which is imposed progressively at higher rates the higher a property costs (as you can see from the tables above). Yet, short-lived changes to property taxation risk warping the property market and generating a ‘property market hangover’ in Spring 2021. I am part of a group of 2,500 estate and letting agents from the UK, and most of us were running at 150% speed before this announcement, coping with the post Coronavirus explosion in demand. 

Now it seems that the ‘feast’ will continue until the end of March 2021 as many more people will move to take advantage of the cut in tax. However, some are suggesting this could lead to ‘famine’ down the line as it will stop people moving into the late spring and summer of 2021. 

History tells us different stories on the influence on transaction volumes from changing Stamp Duty rates. In 1991 the Tory’s raised the Stamp Duty threshold at which house buyers started paying and Gordon Brown did so in 2008 when we went into the Credit Crunch. More recently, both George Osborne and Philip Hammond fine-tuned Stamp Duty so that landlords had to pay an additional Stamp Duty Premium after March 2016 whilst first-time buyers pay less Stamp Duty and the purchasers of more expensive homes (over £1.5m) pay more.

The Stamp Duty changes for landlords in 2016 affected the property market only for a short while and by the autumn, transactions levels had returned to normal. However, in 1991, John Major’s Stamp Duty change encouraged home buyers to bring forward home purchases but nevertheless the property market ground to a standstill again once the benefit ended (although the steps up the 1990’s Stamp Duty levels were much harsher as the tax applied to the whole purchase price, not the margin steps as it had in the 1990’s).

So how much money will Didsbury people save when buying a home under £500k?

The average Stamp Duty paid by those Didsbury home buyers in the 9 months between the 8th July 2019 and 31st March 2020 was £3,737 

Being objective, I can see why the Chancellor could see this as a suitable way to motivate spending because when people move home, they are more inclined to spend comprehensively on property renovations and the services of solicitors, home removal people, tradesmen and estate agents. So, drastically reducing Stamp Duty will undoubtedly help the UK economy, or at least contain some of the damage from the Coronavirus.  

Also, the experience of being in lockdown will have confirmed to many Didsbury people that they need a bigger home or one with a bigger garden. I also suspect other people may be able to work from home on a more long-lasting basis, meaning there could be a shift from the larger cities to outlying towns and even a move to the countryside.

So, these are my thoughts, what are yours?

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Long Term Investment for Budding Landlords

I wanted to talk to you about why Landlords are thinking about long term investment in Property.

Landlords are looking towards their future and what a good way to do this is by investing their hard earned cash/savings into property.

My advice is to look at the following when choosing your next investment:- Price, Quality and most importantly, Location.

Price is key to ensure that you don’t pay over the odds for a property. If its a Buy to Let mortgage they will assess how much percentage the annual rental income achieves over the value of the property. A good Rental Yield as an example would be 5%.

Quality – this refers to the property repair and standard overall. As with all investments, you want to try and keep the costs low so choose wisely. You don’t want to burn a hole in your pocket if the outcome is much smaller financially. Always assess the cost of works that would be required.

Location – Always try and invest in an area where there is a demand for property. Look at what is currently available to rent, ring some local Agents to see how quickly the properties would rent for. Look for local Transport links into the main city, schools and amenities.

An example would be the following property which is currently on the market with Bridgfords Click here to see the link to Rightmove for a 1 bed apartment on Clyde Road.

For this type of property you can achieve a rent of £750 pcm which will give a rental yield of over 5%. Clyde Road offers excellent transport links, close to all the amenities and also a Stroll away from the bustling West Didsbury Vibe. The type of Tenant will attract someone of a professional background and properties in this area hold their value in years to come.

I am happy to discuss your next investment with you so do give me a call on 0161 249 5160 / 07584 038 497 or drop me a line moharramrehman@julianwadden.co.uk.

Thanks Moharram!

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‘A investment not to be missed’

A great Investment for all property investors.

A open house is being held with Edward Mellor tomorrow on Bikerdike Avenue click here for the property details

If you are looking to add to your portfolio, this will be an easy buy for a fantastic return of 6.5% if let at £650 pcm giving you a yearly income of £7,800.

Location is ideal being situated close to Levenshulme and Longsight with a bus ride into Manchester which will attract young professionals who want to enjoy the Hussle and Bustle of the local markets within a vibrant Community.

Call me on 0161 249 5160 / 07584 038 497 if you want to discuss this property or any other properties that you may be looking to invest.

Thanks Moharram

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Managed Service at Julian Wadden

Landlords come face to face with problematic tenancies once tenants move into property.

I talk about some of the benefits of why Landlords should use a competent agent to deal with the ongoing tenancy.

Please watch my latest video and if you would like more information, call me on 0161 249 5160 / 07584 038 497 or drop me a line moharramrehman@julianwadden.co.uk.

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property news is now at nuffield!!

Myself and Moharram visited Nuffield Health in Parrs Woood, Didsbury earlier this week and dropped off our newsletter stand along with some of our property newsletters. Please make sure you drop in to grab a copy and have a good read of what is happening in the market at the moment and all trends that are happening around Didsbury.

The stand is located in the cafe so if you’re having a coffee or a well deserved treat after a gym session, make sure you have a read and any questions, please don’t hesitate to contact myself or Moharram.

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You won’t ‘burn’ your investment in Burnage

Looking to kick start your property business?

We recently let a property on York Court. We had interest straightaway with four offers on the table and a let secured within a week! Click here for the property details.

If you like what you see, JP Brimelow have a similar property priced at £145,000 click here for the property details.

This will fetch around £700 pcm with a comfortable return of over 5.5%.

Call me on 0161 249 5160 if you would like to discuss this property or any other properties.

Thanks Moharram

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Would you like to earn an extra £12,000 a year?

Have you ever thought about investing in property?

Philip James are advertising a two bedroom apartment located on Clyde Road priced at just £189,950. This will let for a minimum of £1,000 pcm.

With it being conveniently positioned close to West Didsbury and a stroll away from the Metrolink, this property will benefit from a high level of interest from prospective tenants.

Burton Road is close by and attracts professionals who will enjoy the local bars and restaurants it offers. Didsbury is certainly the place to be!

Click here for the Rightmove advert for more details. I am free to discuss this property or any other property that you are interested in purchasing, please feel free to call me on 0161 249 5160.

Thanks Moharram

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great property! great location! recently reduced in price!

Are you looking for your next investment?

This property is currently on the market with Jordan Fishwick and has been reduced only today to £195,000 which will fetch you in the region of £895 pcm giving you a rental yield of over 5%. Click Here for the property details and click here of my recent video outside the property!

If you have a property that you are thinking of investing and you want our expert advice on capital growth and rental yields within Didsbury and the Surrounding areas please give me a call 0161 249 5160.

Thanks Moharram

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**buy to let investment deal**

This two bed property which has been fully refurbished and is available for sale with Edward Mellor at offers over £110,000 – giving a potential rental yield of over 7%!!

This property is located within walking distance to Stockport Road which offers fantastic public transport links into Manchester on the ‘192’ bus link, which also goes into Stockport Town Centre.

It’s positioned within the A6 corridor which is a growing community and local residents enjoy the thriving Levenshulme / Longsight markets and Crowcroft Park.

//www.rightmove.co.uk/property-for-sale/property-86583335.html

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