Why Harrow remains a great investment for landlords
Despite what you might read in the papers, there's never been a better time to be a landlord in Harrow. While it's true that changes to stamp duty and mortgage tax relief have raised some barriers to entry for new landlords, its main impact will be to create more opportunities for landlords who are prepared to take the bull by the horns.
The logic is quite simple. Any serious property investor has to take a long-term position in the private rented sector, and anyone trying to make a quick buck is doomed to failure. The winning formula is always a careful balance of shrewd pricing to ensure optimum yield, and thorough local knowledge to ensure you pick the ideal property.
The only players of the landlord game who come really unstuck are those who don't take it seriously enough. Some might not take it seriously as a business but even worse are they who don't take there responsibilites to heart and neglect or exploit their tenants. Either way, a cash positive outcome is unlikely, not is a prolonged career as a landlord.
So here is how to exploit the new environment that the changes have ushered in. Firstly make sure you're working with the best letting agent in the area - we'd rather you used one of our competitors than no one at all. Next, create a financial plan with realistic rental projections and all your outgoings. Think about tax as well - get ahead of it if you want to win.
We don't know what the future holds, and if the last 12 months have taught us anything, its that crystal ball gazing is a mug's game. However, it's probably safest to assume that the days of astronomical capital price growth are behind us, so it's much safer for you to concentrate on the monthly yield side of the equation rather than betting too much on house prices, which are out of your control.
Once you've done these key things you'll be in a fantastic position to succeed. You'll also find that the changes have put off less serious investors and there will be far more choices of rental properties now the competition has weakened. We'd love to help you take advantage of these changes, so please give us a call and we'll get the ball rolling.
Index of quarterly sales levels by type
In this chart, we’ve compared sales levels for flats and houses in the last few years. Instead of looking at absolute numbers, we’ve indexed the rates. This means that flats and houses start at 100 at the start of the period and you can see how they’ve changed since, on an equal basis.
Annual index of prices by type of home
Property prices of different house types can be like chalk and cheese. Smaller properties have a higher turnover and lower price than larger properties. So for this chart we've stripped out the actual figures and look at an index of how each type has performed over time.
Number of people per home
The number of people living in homes in the local area tells us a lot about the character of our market. Areas with smaller households tend to be dominated by either the very young or very old. Homes with more people tend to be dominated by families and this is the case for most housing markets around the country.