Investors

The “buy to let” market has grown in popularity and strength over the past ten years.

Personal pensions have been in decline and there have been numerous public reports since the early to mid 1990s that pensions will not return the same results as in the past. This means that individuals and families alike have looked for an alternative as a “pension fund” or investment for retirement, old age and later life.

The letting and rental market has been recognised by many people as an excellent form of investment in terms of both capital gain, ie property growing in value over ten to twenty-five years, and also for the purposes of rental income, ie a monthly income once the property has been paid for.

Given the strength of the letting market, this of course will depend on the level of mortgage raised against the property, interest rates and repayment figures. Depending on the location and rent achievable, it is quite possible for the property to pay for itself. It represents a very neatly packaged and financially independent proposition. Over a period of ten to twenty-five years the mortgage can be paid off. Not only is the mortgage paid off through the rental process, there is the benefit of capital growth, where the property may grow in value considerably during that time. The capital gain potential is excellent. Thereafter, there is the potential for continuing to let the property, providing excellent returns in respect of rental income for later life. Alternatively the property could be sold, or a combination of both can be achieved by re-mortgaging the property at that time, raising capital and continuing to let the property out, repeating the process again. This of course would be subject to rental values and interest rates at that time. It is important to remember that property values can go down, as well as up.

Subsequently this is becoming increasingly popular as an excellent form of investment throughout the UK. There is excellent demand for good quality rental accommodation with an abundance of tenants wishing to take up tenancies. Since the mid 1990s the number of investors has increased and therefore the number of rental properties has become larger.

We believe that subject to a number of on-going developments in the Town, the property market in Harlow will continue to be very strong for both estate agency and lettings over the next five to ten years.

When there is an abundance of properties available it is imperative for landlords to make sure their properties are among the best available. To ensure this happens we would recommend that all landlords make sure their properties are clean and tidy with good quality kitchens and bathrooms. All decoration should be colour co-ordinated in simple, plain colours with all carpets matching. This allows an incoming tenant to rent a good quality property which they can turn into their own home with the appropriate furnishings and personal items. Most tenants will pay a premium rent to identify a property in a good location which is presented as above.

Many estate agents, letting agents, mortgage lenders and independent financial advisors encourage the purchase of property to let - not all offer comprehensive advice on the costs involved, the possible problems letting and the period of investment required to ensure successfully entering into the property market.

The beauty of “buy to let” mortgages is that with a 15% or 20% deposit, any person can purchase a second property and have it legitimately let out with the knowledge of the Building Society. Buy to let mortgages are extremely popular with investors, and most major banks and building societies will provide a buy to let mortgage when the investor/vendor provides a 15-25% deposit. The mortgage market changes constantly as building societies and banks wish to ensure they are providing the best, most competitive services. For full and detailed current marker information or mortgages we would recommend the following financial advisor: Steve Clay, Mortgage Seekers, 16 Wych Elm, Harlow, Essex. Tel : (01279) 428899.

Potential landlords have to calculate their commitments carefully, taking professional advice and working with highly experienced lettings and management companies.

At Guardian, we view every enquiry as a potential long term client. We work very closely with our landlords, assisting those who need to let their home during an absence or holiday, and helping investors develop a secure and successful property portfolio.

Harlow is strategically placed geographically for industry and commerce being on the perimeter of the M25 giving easy access to all the Home Counties and London, north to East Anglia and the Midlands and given the motorway infrastructure the whole of the South East and southern counties. Subsequently GSK, Princess Alexandra / NHS Trust and Nortel, amongst others, ave major sites here in Harlow.

Harlow is a short commuting distance to central London and has been a location chosen by people moving out of London to semi rural locations, still allowing them to continue to work in the city centre.

The Town has also been highlighted by a number of national newspapers as a “property hot spot” over the past two to three years during the early 2000s.

Major builders have made contributions towards Church Langley and will continue to do so on the “New Hall Farm” site. This site has been reported in the national press as being a significant and important development. As part of the long term plan for the region there is a plan to build a further 6,500 homes in Braintree, 4,000 homes in Stansted, 1,200 homes in Harlow and 2,000 homes in Bishops Stortford. This is reported on the regional planning government home page website address, www.eelgc.gov.uk. There is considerable investment coming into the area over the next few years. Stansted Airport has had a significant impact on the area, and there are plans for the installation of a further two to three runways, continuing the airport’s development. This can only add to the economic strength of the immediate area. Numerous support services will be required, creating new jobs in the local area. All this adds up to, in our opinion, Harlow being an excellent property market to invest in over the next five to ten years.

If you would like to take advantage of our services further we would be more than happy to discuss your investment plans at any time.

We have a programme at Guardian for assisting investors to identify the correct property to purchase for investment and rental purposes. It is a very simple systematic programme which will enable you to research the market thoroughly making your own decisions matched to your own financial plans and objectives as you go. Whilst we are more than willing to provide this advice free of charge, we are always mindful of the fact that each and every decision is made by the investor at every stage. Our job is to provide professional assistance and guidance, hopefully assisting the investor/landlord to become as knowledgeable as possible.

Being a Letting Agent and Estate Agent, we have numerous enquiries from investors. If you are purchasing a property for investment purposes in the Harlow area then we would ask you to contact Michael Coleman and who will advise you of a structured plan in which we can assist you to locate and identify the appropriate properties for purchase. This involves identifying properties which are suitable in terms of their “letability”, rent that can be achieved, maximum yields, capital growth potential, “saleability”. We will discuss how these could formulate part of an existing portfolio or become the cornerstone of a portfolio which you intend to develop over the forthcoming months and years. This advice is normally tailored to fit each investors personal objective and financial parameters. We would therefore ask you to call us to arrange an appointment to discuss the matter in detail.