Home Truths

PUBLISHED: 12:11 17 January 2013 | UPDATED: 22:38 20 February 2013

Home Truths

Home Truths

This month's property expert, Dean Jackaman NAEA, guides us through investing in property.

With banks failing us and pensions and savings schemes coming up short or offering a measly 2% return, its no surprise to see that a booming lettings market has made buy to let property the hot topic. Many people are now turning to buy to let as the only way to guarantee some income for the later years, but where do you start?


Firstly, do your research. Ask your friends and family if they have any investments and where? Then use the internet to search for new developments as well as the second-hand market to compare prices. Talk to an independent financial advisor and discuss how much cash you want to spend and if you should inject all of your cash or split it up and buy several investments on a buy to let mortgage. Call several letting agents first and see what the demand is for the property in the area you are considering.


Get an idea of costs and charges from the agents, from finders fees to fully managed charges. Dont forget, if you are buying a leasehold property you need to factor into your costs any service charge or the ground rent. It is very important to take your time and not to rush into it. Dont be forced into a snap decision by over enthusiastic sales staff or agents.


The average yield on a buy to let across Essex and into east London is around 5%. However, in letting hot spots, like around Essex University, the yields can reach up to 9% subject to the price you pay. Remember, capital growth is also very important in the long run and buying a property with the X factor is not as important as getting the right price. If you can, look to base your decision on a seven to 10-year plan.


Always



  • Do your market research first. The internet is a powerful tool, so use it!

  • Do your figures before you make any offers. You could save yourself thousands!

  • Alwayscheck the rental opportunity of your investment. Is it in a popular area? Does it have year-round demand? Is it close to a station or other amenities?

  • Get good advice from a recommended letting agent or investment company or consultant you can trust. Ask them to support the rental figures and popularity they may claim with hard evidence.



Never



  • Buy anything on a whim or someone elses recommendation without checking it out thoroughly first.

  • Pay full asking price for anything brand new or second hand unless it is at least market value or below market value.

  • Buy anything that requires lots of work if you know you will never have the time to do it?

  • Take on a tenant who has not been thoroughly referenced by an independent referencing agency. Make sure you get a landlords rent guarantee from the agent.

  • Rent to a tenant without a minimum of six months deposit or bond and make sure you read up on deposits. You can find out more at www.depositprotection.com

  • Never buy all of your investments in one area as demand can change.



Get in touch


For free advice on investments in Colchester, get in touch with Dean Jackaman at:


Jackson & Co Property Services


Weston Business Centre


Hawkins Road


Colchester


Co2 8JX


01206 266714


dean@jackson-ps.co.uk



Picture this


Weston Homes Hawkins Wharf development in Colchester offers high quality, affordable homes close to the University of Essex campus and has proved to be a great investment opportunity.

IN PROFILE


Dean Jackaman NAEA is well placed to advise you in any area of land or property purchase. With 33 years of experience in the industry, Dean now specialises in the buy to let investment market within the student and medical sector. Dean also runs a very successful property lettings and management agency in Colchester.


0 comments

More from Homes & Gardens

Thursday, October 25, 2018

James Merriott continues his watercolourtour of the county in a village which has more beauty than most, despite the impression of its name

Read more
Friday, October 5, 2018

With one of the warmest and driest summers on record, this year has been a difficult one for gardeners. Susie Bulman from The Beth Chatto Gardens at Elmstead Market shares some top tips for plant survival, even in these conditions

Read more
Wednesday, October 3, 2018

Whatever style of carpet, rug or runner you need, we’ve got tips for choosing a style, brands to try and how to care for your new carpet

Read more
Wednesday, October 3, 2018

Whatever style of carpet, rug or runner you need, we’ve got tips for choosing a style, brands to try and how to care for your new carpet

Read more
Wednesday, September 26, 2018

As we head into Autumn, the change in season is all around us. From the leaves on the trees turning burnt orange and fiery red, to dark mornings and nights bookending our days. As we put the clocks back an hour to battle the darkness, here’s some top tips on how you can keep your home warm and costs down this Autumn.

Read more
Friday, August 31, 2018

Rural energy provider, Calor, gives some top tips for homeowners wanting to make their houses cosy and warm in time for the colder months.

Read more
Friday, July 27, 2018

Essex Life showcases a chic collection of top places to stay which, while close enough to home, still offer an idyllic escape. Here are 12 great staycations in Essex, Suffolk, Norfolk and Hertfordshire

Read more
Sunday, July 1, 2018

Residential property company heylo recently signed the Armed Forces Covenant, pledging its commitment to fair treatment and support to the Armed Forces community, including regulars, reserves, veterans and their families. The signing took place in a ceremony held at Wellington Barracks

Read more
Tuesday, June 12, 2018

You can’t beat that feeling of walking over the threshold of a brand new home that has only been lived in by you. Essex Life showcases a selection of some of the local developments offering you exactly this opportunity

Read more

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy



Follow us on Twitter


Like us on Facebook

Topics of Interest

Food and Drink Directory

Local Business Directory



Search For a Car In Your Area

Property Search