Welcome to the Wood & Pilcher October newsletter! In this edition; Do you know the work involved with selling a property? Investors - property is still the highest yielding investment you can make right now, most parents would pay considerably more to live closer to a good school and finally, seven steps to making your small rental feel bigger.  

Until next time,
Wood & Pilcher

 Ask anyone who has sold a home and they’ll tell you it can be quite a lot of work. Many simply believe they can declare their intention to sell and then they can just wait for offers to roll in. In actual fact, there’s a lot more work and many homeowners aren’t aware of that.

• Local knowledge
Did you know that you live in an area surrounded by student flats? Or that your property is worth more because it’s in a location with great access to local amenities? An estate agent knows that. The analysis and research we perform will be instrumental in setting a realistic asking price for your home.

• Database of potential buyers
We will keep a whole database of potential buyers, waiting for a property. Rather than waiting for buyers to come across the property, we’ll be proactive, offering these buyers the opportunity to view and buy your home.

• Marketing expertise
No one knows how to market your property like we do. If you’re happy just to put it on an online estate agent and wait around complacently until it sells, feel free. We will use a variety of the best methods for marketing your property.

• Managing and conducting viewings
We will be able to assist you in preparing the property for a viewing. We will then be able to conduct it for you, assisting the prospective buyers with any questions or guidance they need.

• Advice and guidance
Should anything go wrong with the sale, it’s important that you have someone knowledgeable to turn to. We will be able to advise you on the most common obstacles before you even encounter them and can assist you with any more serious issues if and when they happen.

• Managing the sales process
A good estate agent will constantly manage and interact with the property chain and the solicitors, constantly ensuring that everything is on track for a successful completion. This is one of the main benefits of hiring an estate agent. We take as much of the stress as you want off your shoulders.

• Negotiating with the buyer
Negotiating isn’t for those with a weak disposition. You need to be able to stand your ground, rebuff any unfair offers and, most critically, you need to be able to read the one making the offer. We will know which positions to adopt and will be able to read the situation with a trained eye.

 The buy-to-let market has already seen some significant changes in 2016, with perhaps the most significant being Brexit and the increase in stamp duty. It’s clear why many may wonder whether property is still a solid investment, however for investors looking to add value to their portfolio, UK property remains the highest yielding and resilient of all assets.

UK property remains the highest yielding investment – and it’s becoming the “new norm”.

You can look at buy-to-let in the same way as any kind of investing: you're putting your capital at risk in pursuit of a regular income, capital growth, or a combination of the two. However, it's quite different to holding investments like stocks, bonds or precious metals:

• For a start, your assets have low liquidity – another way of saying it isn't easy to get your money back, because it takes time and costs money to sell a property
• There are lots of legal responsibilities, some of which we cover below.
• Usually, there is borrowing (gearing) involved, in the form of a mortgage
• By 2021, buy-to-let investors with a mortgage may be taxed on revenue, not profit

More and more investors are being drawn to property as the returns continuously outperform those of other investments, including bonds, stocks and shares.

And it’s not just UK investors that are interested…

A number of Europeans have moved to secure UK property while assets are below market value following a significant drop in pound sterling. There has been a shift in investor sentiment towards lower risk opportunities that offer income yield following the vote for Brexit, with many investors targeting properties in the UK.

Before you start browsing our website for your next buy-to-let opportunity though, it’s important to consider the risks involved with investing in property.
• It ties up your capital. To access your capital you'll either have to sell or remortgage your rental property, which can take time. You'll need an emergency fund in place to cover unexpected expenses while your capital is locked away.
• Property prices can go down as well as up. You may not be able to sell your property quickly, and you may not get what you paid for it which could leave you in negative equity.
• Rental income can fluctuate. The amount that tenants are willing to pay can vary according to supply and demand. If you have to reduce the rent, it could affect your ability to keep up with your mortgage payments.
• It can take time to find tenants, and they won't always pay their rent on time
• You're responsible for maintaining the property, which can leave you with unexpected demands on your cash flow and affect your overall returns.
• You have legal responsibilities to your tenants; if you inadvertently break the law you could end up with fines or a criminal record.

Parents in England are paying up to hundreds of thousands of pounds more for their homes in order to get their children a place at top state schools. 

Research has shown that parents are increasingly more willing to spend more to live closer to a top performing school. In fact – an average of &53,000 more (an increase of &13,000 from last year.) 

A typical property in the postal districts of one of England’s top 30 state schools costs around 17% more than the average home in a neighbouring location, according to the study by Lloyds.

Overall, parents can expect to spend an average of &366,744 to live in the areas closest to England’s top 30 state schools, compared to a national average of &313,318.

Six of those top schools – including the Henrietta Barnett School, which was named the top performing school in the country for GCSE grades last month – have pushed their local house prices up to a record of at least &150,000 above their county averages.

Andrew Mason, Lloyds Bank mortgages director said: "Schools with the best exam performance are proving to be an increasingly strong draw for home-movers, as we've seen house prices rise sharply in locations close to such schools. Our analysis shows that since 2011 average house prices in areas with the best state schools have increased by &76,000, compared to a national increase of &42,145."

"And seven of the areas covered in this survey have seen house prices rise by over &100,000 in the last five years. The popularity of areas close to high performing schools may mean that homes remain unaffordable for buyers on average earnings."

 1. Use the space
Having your stuff shoved up against the wall just leaves your home looking cluttered and uncoordinated. Use the space in the room and scatter your furniture around it.

2. The table of a thousand uses
If you’re going to buy furniture, make sure you buy multifunctional pieces. Instead of a simple ottoman, buy one with internal storage, buy a work desk with shelves and drawers included.

3. Fold up furniture
There are beds, chairs, tables and all other types of furniture that can be folded up and put away when you’re not using them. In some cases they turn into a smaller version of themselves meaning you can still use them.

4. Open the curtains, then get rid
Having uncovered windows will trick your eyes into thinking the room has more depth. It also reveals the view outside which (depending on the landscape) will make your room feel vast. If you need privacy, light colour drapes that allow light will still add to the room.

5. Colour Coded Disaster Area
Got loads of clutter like books, DVD and Blu-ray cases? Try colour coding them! Rather than a messy eyesore, you’ll have a colour coded display.

6. Go big in your home
A small room full of small furniture doesn’t necessarily mean it’ll look bigger. Sometimes it’s better to have one big, eye catching piece of furniture.

7. House of Mirrors
Well not literally because then your home will resemble a funfair. A strategically placed mirror will give the house the illusion of size.