What is the latest on Welling property prices?

I am still amazed on a weekly basis to be told by vendor after vendor that the housing market isn't very good. 

"Where are you getting that impression from?" I ask... the answers are wide ranging. 

And is it any wonder when Rightmove and Zoopla, the nations two biggest property portals, are both issuing reports to prospective buyers and sellers that all is doom and gloom?

Zoopla have issued figures this week showing property prices in Welling, DA16 are down over the last six months (see graphic below). Working in the area on a daily basis I don't agree, but maybe its just us!

If you delve deeper, do bear in mind that those prices are transacted properties. Those coming to market in the last month or so will not have concluded and been reported back to the Land Registry. As we are averaging this calendar year over 100% of asking price achieved across our sales pipeline I would assume that things are on the up for anyone looking to sell in Welling, and as they say, you shouldn't be reliant on stats, but should speak to a local agent. 

Then come Rightmove with their report on average prices for sales and rentals, but most alarmingly of all, the average rental yield for DA postcodes being just 4.71%. That, frankly, annoys me, because anyone renting out their property for a low yield is effectively losing money, and if that is the average, there are some almost giving their properties away. See below. 

So for those of you insistent on being sceptical, including the big portals, what about some factual evidence. 

Take Coleman Road, DA17 for example, a nice residential street in Belvedere, what would a house there sell for? Circa £300,000 we decided in conjunction with the owner. And the result?

And of those ten offers, nine were asking price or over, and all achieved within one week. And the one under asking price? "Zoopla says the average price in the area is £285,000 so I'm offering that and think it's fair". Sadly for that buyer, nine other parties, one vendor and his wife, and three estate agents didn't agree. 

The market is strong, in Welling and surrounds at least, so if you are considering a move, don't believe what generic websites and stats tell you, or historical data, ask the people in the know, the agents, looking at property and speaking to buyers and sellers on a daily basis. Gauge their opinion, and as mentioned before, you might be pleasantly surprised as to what your property is really worth, and how quickly it will sell. 

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

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Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

Welling Investment Property of the Week - 15th March

Marketing Price - £270,000

Expected Rental - £1200pcm

Rental Yield at Asking Price - 5.3% per annum

Investment flats that are reasonably priced and in good condition are in short supply in Welling in recent times. Step forward this excellent two bedroom maisonette in South Welling within a short walk of the High Street. 

Perfectly presented and modern throughout this is a perfect rental investment as you can literally rent as is. This spacious two bedroom has its own private section of garden, and is within a few hundred yards of at least two excellent primary schools making it a good rental property for professional tenants, especially with the station only 0.2miles away, as well as a younger, smaller family. 

Well worth contacting the owner directly via their private agent HouseSimple, just bear in mind where you found the deal from when you need tenants!

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

5 reasons why "Below Market Value" doesn't exist, and how to find a bargain in Welling

I hate the phrase "below market value", or BMV. Hate is a strong word, but there is simply no other way of putting it. BMV does not exist. It is merely a throwaway phrase to describe "a good deal".

So what is BMV?

As the phrase indicates it is a purchase price lower than what you would normally expect to pay for a property. So if all the flats in Welling with two bedrooms and approximately 600sqft are £250,000 and this particular seller sells at £200,000 you will be buying at 20% below market value.

Why?

Yes, indeed, why on Earth would someone give you £50,000 off simply because you can complete quickly, or act confidentially, or any other rubbish that the "gurus" spout that will help you convince sellers to sell cheap? In a strong market like Welling, with so little available at present, one merely has to drop the price a smidgeon to get interest. And don't tout the old "it was £285,000 and now it's £275,000 rubbish, that just means it was overpriced to start with.

Creating genuinely good buys

So what creates "discount?" Well there's no such thing as discount. It's price. If the price you want to pay is lower - and as an investor you will want to pay as little as possible - you have to look for the right set of circumstances. Reverse these if you are selling of course.

1. Timing - Don't go in straight away with a low offer (low compared to the asking price, not to the value, more on this later) or you will be laughed out the door. Everything is about timing. Day 1: seller is hopeful to get over the asking price, a million bidders outbidding each other for his crummy, pokey, dated flat. You want a deal? Look for properties that have been sitting around for a while. Sort by date listed on the portal and work backwards.

2. Presentation. A cheap agent is generally a bad agent. A good one charges what he's worth of course. So look for properties on Zoopla. Rightmove is expensive and cheap agents can't afford to advertise on such a posh portal. What does a pen cost in WH Smith vs Harrods? Right, same pen, different price!

3. Cheap sellers. Linking with the previous point, the cheapest sellers will be the most ill-educated. Property-wise of course, they probably have pHDs (eyeroll emoji). There is a time and a place for DIY agents, but I will go on a limb here and say that the vast majority of sellers that sell through Yoga, PurpleMortar, Tipelo, HouseDifficult, ZMoove are confident that their iPhone quality photos of their dirty-toilet-with-lid-up-shot as the first picture will attract viewers by the dozen. If you are reading this you must agree that, in the vast majority of cases, good photography, a description written by someone that has proper command of the English language (or has a computer with a spell check function) will attract more interest/viewings/offers and thus a higher price. So... want a deal? Look for DIY agents' listings. They're not getting any other viewings or offers so yours is best by default!

4. Circumstance. These all link together, but "I love it when a plan comes together." In an ideal world you want the smelliest property that you can find, simply because it completely puts off owner occupiers that normally offer about 20% above what it's worth already refurbished. So when you call the agent... "oh, it's tenanted you say?Access is tricky? Oh no Mr. Agent, well I'll wait for your call then, do try and get in for me!" Now I've been down this road a fair few times. Mr. Seller has probably let his property through ClosedRent, zPad or some other "upload rubbish photos here and attract the worst tenants possible" portal and not had the foresight to keep a set of keys. Now he doesn't want to get rid of the tenants when he's selling because he wants to squeeze every last penny of rent out of the property. Well that's good for you, the investor, because the tenants are smelling the place out like a medieval cesspit, not airing or heating the property and they work unsociable hours so viewings are nigh on impossible. What do you think these circumstances do to the achievable price of the property? Yes, 10 points for you, nobody can get it and view, let alone offer on this lovely pile of opportunity. Good for you! Keep chasing that agent, set a reminder to call him every 2/3 days and make sure you get in, you'll be the only one and when you do, give that agent an offer and make sure you tell him it's the best he'll get. It will be, mind you, and he will do his best to shove that offer down the seller's throat with his size 10s simply because he doesn't want to go through the hassle of trying to arrange another viewing on it. Industry average is an offer every 10 viewings, but if getting another 10 means 10x the man hours he's already put in he'll definitely be pushing your offer - it will be easier for him!

5. Relationship building. This comes after you've actually booked an appointment. I hate all these things floating around saying that you must take estate agents out to lunch/dinner/coffee/buy them flowers and otherwise schmooze them. Rubbish. Estate agents want a solid offer, a solid deal and they want the transaction to go smoothly. So talk to him (or her) about the potential other offers that they won't get because they've had to spend 10 hours of phone calls with the tenants just to get you in and they will side with you and your offer. Then when it gets agreed and you go through with the deal with professionalism and returb the property to them for the follow-on transaction they know you are a serious player and will come to you with difficult flats first. Results mean a good relationship. 

Ultimately though, chase the property, not the agent.

So - BMV - fact or fallicy? I say it's a farce. Market value is determined by a distinct set of circumstances surrounding the property, nothing else.

If a seller wants to sell quick, you can buy and you have a little more equity in the deal because if you sell at "market value" and just take your time you'll find it's worth more. Like a commercial property that's empty, the inverse is true for residential. Filled with a smelly tenant the value plummets. So you want to sell for top dollar? Sell to an end user buyer (owner occupier) so get the smell out (and the tenant) and do some work to maximise value!

So as we've established, smelly tenants (not to be confused with good tenants that keep the place tidy and add value of course) and other problems such as decoration and refurbishment requirements reduce the market value. Beware though, a property that needs £50k worth of work to get to £275k market value is not worth £225k! Do your numbers because by the time you add in stamp duty, legal and finance costs you'll probably need to buy at under 200k to make any meaningful money. Perhaps you can sail closer to the wind if you are looking to hold long term, but you will want to buy at less than the work costs you. As a rule of thumb you should make £2-£3 for every £1 spent on costs on building works. 

So, go out there and find the most difficult to access properties and be tenacious. Go forth and find those impossible to access flats. Because nobody else will get over the threshold to offer. Where there is no competition the price is low.

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website


Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

Welling Investment Property of the Week - 6th March

Marketing Price - £240,000

Expected Rental - £1150pcm

Rental Yield at Asking Price - 5.8% per annum

Another week, another great investment opportunity, and I can't quite believe this one hasn't been snapped up already. 

On the Welling borders and neighbouring Plumstead Common, this spacious two bedroom maisonette appears in excellent condition throughout, has a private section of garden, and we're told has a long lease. 

This would make a great investment property given it needs no work to get it into rental condition, and with the Crossrail developments and natural increase in popularity and therefore prices in SE18 a quick purchase and sit on it for 10 years will reap great results. 

Well worth a call to R&J in Plumstead for more information. 

http://www.rightmove.co.uk/property-for-sale/property-46371117.html

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

Why when you think you're saving money, you could actually be losing 1000s.

Estate agency has changed a lot since I first started out in 2006/7. Back then many agents barely had the internet in their offices. I even remember attending an interview once for a very large agency in London where they only had one computer for the whole office and you were reliant on pen, paper and a roller-deck. Not for me. 

So as technology has changed, and the internet, smart phones and tablets have come along, so has the "do it yourself" landlord or homeowner, often armed with an internet connection and not much else. 

Now I'm not naive, there is a place for these companies, and likewise, there are people out there who are more than capable of renting or even selling their own homes, but it shouldn't be considered the norm, and nor is it likely to become so in the short term. 

But people do it, and sometimes very poorly, all under the impression they will "save money" as those horrible estate agents charge so much, and do naff all for it. 

Take a look at this picture from an area I know well in South-West London. Any initial thoughts?

Saving money is not what comes to mind. Thinking you have maybe, but potentially losing 50k on a house sale and doing it all yourself isn't best for the finances in my eyes. 

This is one of many examples, and if I were to highlight them all we'd be here all day, the wider point is that estate agents are experts in the property industry, and often local area experts too. You are paying for a service that, if done correctly, will almost always make you more money not cost you money. 

Remember, the cheapest agent is the one that gets you the highest price, not the one that charges the least. 

Always seek the advice of a good agent before selling or renting your biggest asset, and if you then decide you are better off doing it yourself then go for it, but at least survey what's out there first, before you potentially cost yourself a small fortune. 

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation