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Wednesday, 18 November 2009

 

Earlier this month, UCAS (Universities Admission Service) announced that the first figures on the numbers applying for UK university places next year (2010) shows a 12% increase on this year. What is also interesting to note is that applications from students from outside the UK also rose and it is anticipated that this trend will continue.

This is good news for property investors who have properties rented to students - an investment strategy which I firmly believe in - since the old dynamic of supply and demand will serve to ensure healthy rents and solid capital growth in this property sector.

Currently there is a shortage of quality student accommodation available to provide housing around universities and demand tends to outstrip supply. Many cities have embarked on the construction of new halls of residence but with the credit crunch putting pay to many construction projects, some of these schemes will fall by the wayside or be delayed. This means that demand for student accommodation in the private rental sector will remain high.

Click here to read my Top Tips on Renting to Students.

POSTED BY: AT 11:04 am   |  Permalink   |  E-mail this
Wednesday, 11 November 2009

Last week I was filming in Devon once again and one of the properties that was featured was in the heart of Salcombe - one of the most popular weekend retreats for sailors and the London jet set. Prices of residential property here are pretty steep for Devon, but the one I visited was a commercial property in one of the main streets.

Advertised as a 'shop', this little unit has no running water or loo and has just about the same footprint as a Ford Transit Van!! So, just about enough room to swing the proverbial cat or more sensibly to house a desk and telephone - but not much more.

The property actually attracted quite abit of interest - most probably because of it's location in one of Salcombe's busy trading streets - and eventually sold for £27,500.

Now, from my reckoning - taking the inner dimensions, this works out at about £6000 per square metre and got me thinking about how this stacks up against other property hotspots. I know that Salcombe can command prices on par with London - but where else do prices reach these heady heights?

Most Expensive Towns in the UK

Post Town/Borough

Region

Price per M2 (£) (based on 2007 Figures

Kensington and Chelsea                      

Greater London

£8,386

Westminster                                 

Greater London

£6,893

Camden                                      

Greater London

£6,092

Hammersmith and Fulham                      

Greater London

£5,605

Islington                                   

Greater London

£5,085

Wandsworth                                  

Greater London

£4,871

Richmond upon Thames                        

Greater London

£4,646

Tower Hamlets                               

Greater London

£4,387

Southwark                                   

Greater London

£4,315

Lambeth                                      

Greater London

£4,080

Source: Halifax

Average Prices in Major Global Cities (2008)

Ranking

City

Prices(£), per M2

1

London*

9,805

2

New York

7,919

3

Moscow

7,720

4

Paris

6,872

5

Hong Kong

6,262

6

Tokyo

5,900

7

Singapore

5,865

8

Mumbai

5,081

9

Barcelona

4,906

10

Geneva

3,745

Source: Global Property Guide

* The average of London (prime) and London (other luxury) per square metre (sq. m.) prices.

POSTED BY: AT 11:06 am   |  Permalink   |  E-mail this
Wednesday, 04 November 2009

I recently visited a cottage in Cornwall which had a shared access driveway with its neighbour. This is not an uncommon occurence and in most cases, having to share a driveway, pathway or hallway doesn't cause any concern for either party, but even so, it's worth knowing what your rights are.

What types of Shared Access occur?

There are differant situations where shared access is likely to be case.

  • Shared access - This is where part of a driveway is shared between two or more properties, or, most commonly, when flat-dwellers share a hallway and stairs.
  • Access to other properties - This happens when someone needs to reach their property across yours; for example, a barn conversion where the farmer who owned the land wants to retain access to his fields.
  • Easements - This is when there is a short cut across your property to a neighbour's house, garage or garden which they may or may not use. Easements can also refer to a neighbour's right to access drainage systems, water supply etc used by them but running under your land.

Ensure that there is a clear formal agreement in place about any easements, shared access or access rights to other properties. If theres is an informal agreement, you will need to get this formalised if either party intends to sell so it's best to get something properly drawn up - You may not mind being the one who always weeds the shared path but a future owner might not be so generous.

If your property has shared access i.e. you share a driveway, footpath or hallway with your neighbour(s), or you are considering buying one that does, then you need know:

  • Who owns the access? In the case of our Cornish property where two houses shared the driveway, the ownership was 50:50, but this isn't always the case. The access rights for both or all parties should be written down in the Title Deeds of the property
  • Whether the access is an established right of way. If so, there are certain obligations placed on you as the owner (see below)
  • Who is responsible for its upkeep?
  • You need to know if you will be expected to gravel the lane or clean a lobby, or if you are expected to pay someone else to do this. Ask if there is any legally binding agreement about upkeep and costs. Make sure you know what your part in this deal will be.

If you share any access, you have to be considerate of others' needs and wishes. Nobody is going to object if you weed the shared drive or vacuum the hallway daily but do not expect to be thanked. Do not overstep your rights by changing anything without full consultation with the person with whom you share access. You might think the hedge is too wild or the hallway light-fitting is incredibly ugly - your co-owner might not.

Footpaths and Rights of Way

Footpaths are often ancient ways that have been established as rights of way over hundreds of years. They originated when walking was the most common way for people to get from A to B. Many footpaths run across people's land and sometimes through their gardens - so, anyone stepping off the track is techincally trespassing.

As an owner of a property with a footpath, remember:

  • It is up to you to ensure that the way is clearly marked ;
  • It is illegal to try and block the footpath or divert it without permission ;
  • It is extremely difficult, time-consuming, sometimes impossible and usually very costly to get a footpath diverted. You have to apply for it to be given an alternative route under the Highways Act (1980).

Having a footpath or right of way running through your property may not necessarily be so bad - but if you are considering buying a property that has such, you are advised to do abit of research. It's worth walking the path yourself and see where it goes to and visiting the property to physically inspect the pathway will give you some clues as to how much of a inconvenience it is likely to be - If the path is badly overgrown, you can almost guarantee it is used infrequently and vice versa.

Any rights of way on to or across your land should be highlighted in the Legal Pack and if you inspect this prior to purchase, you should get a clear idea of what rights you have etc. Even if the current owner says it is an unused right of way or footpath, be prepared for someone to start using it. 

Be aware that a footpath or right-of-way running through your garden, particularly if it is within sight of your home, will devalue the property.

POSTED BY: AT 11:07 am   |  Permalink   |  E-mail this
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