Inspire Estate Agents - The Informer - April 2014

THE

INFORMER Inspire Estate Agents Newsletter April 2014

WELCOME! W are delighted We d li h d to introduce i d you to our exciting first edition of the Inspire Estate Agents newsletter 2014.

With the property market in overdrive and a strong rental market, property seems to be the conversation on everyone’s lips. At Inspire Estate Agents we have built a reputation for being the informed choice. We are proud to offer clients information to enable them to make the right decisions regarding any property matters, whether it be buying, selling, renting or financing property.

We take great pride in working with the local community and supporting local business like ourselves. This led to the inspiration to launch our own newsletter, dedicated to offering exciting news and advice on everything property, in the Maidenbower and Worth neighbourhoods; supported by local business and the local community.

So sit back, relax and hopefully enjoy our newsletter and remember if you need any advice we are always nearby.

House prices surge in your neighbourhood but will it continue?

The feel good factor in the housing market is back with a vengeance, causing house prices to have risen dramatically over the last year. This increase is currently showing no signs of slowing as demand from pent up buyers continues to remain strong for all types of property in Maidenbower and Worth. Looking at prices achieved on an average 3 bedroom semi-detached Bryant Ryefield this year, compared to last year we have seen an increase of around 11.4%, this figure compares favourably to an 8.8% increase nationwide last year.

With Maidenbower and Worth proving popular for buyers with its excellent transport links and highly regarded local schools, local residents can expect to continue to realise the value they want for their properties.

If you are thinking of moving and require a free no obligation valuation contact Inspire Estate Agents now on 01293 582335.

We guarantee to offer the best marketing package at affordable fees.

We certainly don’t see this demand slowing for this year, so if you are looking at upsizing the advice is do it sooner rather than later.

Low interest rates, a genuine shortage of stock and Help to Buy schemes, are the primary causes behind this growth. With an election on the horizon it is highly unlikely that Help to Buy will be withdrawn early and inflation falling to 2% has eased the pressure on the Bank of England to increase rates.

Tel: 01293 582335 • www.inspireestates.co.uk Follow us on Twitter: @inspireestates and Facebook: Inspire Estate Agents

Inspire Estate Agents The informed choice

THE INFORMER : APRIL 2014

How do you secure that elusive property?

With interest rates at record lows, simply stashing money in the bank is no longer an option for many people. Investing in property looks more attractive compared to the high risks associated with stock market volatility.

Properties are selling fast, and prices are increasing making it an exciting time to be investing in property or buying your first home. But it’s not all plain sailing, this new optimism in the property market has led to an army of investors and an influx of first time buyers jumping on the Help to Buy wagon, all competing for the few properties that are coming to the market.

The question is how do you manage to jump the queue to secure that elusive property?

The simple answer is hard work. You need to begin by getting up early and searching the internet on sites like Rightmove or

Zoopla. Rather than scrolling through all the properties that you have previously dismissed, search for properties that have been added in the last 24 hours and do this every day. You want to be the first one calling the estate agent in the morning to arrange and book your viewing as quickly as you can. Don’t make the mistake of waiting for the weekend, if you have a lunch break and work nearby, use it!

You also need to network. Pick 5 agents who regularly take on properties in the areas you are looking in and build a relationship with a negotiator in the office. Now is the time to switch off that I-pad and make some traditional face to face contact. An estate agent will remember your personality, not an e-mail lead! Once you have built this relationship make sure it grows; call once

a week, always ask for the same person and remind them what you are looking for.

This way when a new property comes to the market you get the first call from your friendly negotiator as you name jumps out from the crowd.

On the viewing go armed with research of similar properties that have sold recently.

Now you know if the property is pitched at the right price and if you feel it is offer the full asking price. Make sure you have your finances in place. An estate agent cannot recommend your offer if they don’t know your financial capability to proceed.

Finally and absolutely vital, appoint a good conveyancer who knows the local area. If you conveyancer is no good you could end up losing your property at the final hurdle wasting all your hard work.

Dream of owning your own equestrian property?

Property of the Week!

A fabulous five bedroom detached house with stables situated off a quiet “no through” road on the south side of Tilgate forest offering space and versatility; in the scenic setting of Pease Pottage. Whilst the village of Pease Pottage provides a tranquil living environment with the property itself enjoying idyllic views over countryside, it benefits from excellent transport links with the M23 and from the nearby town of Crawley with main line rail links to London and Gatwick International Airport.

The property which was formerly two cottages, has been sensitively refurbished to a high standard and is set in grounds of approximately 2.75 acres with three stables. It is accessed via electric gates and benefits from ample parking at the front.

The living room is drenched in natural light owing to two vast bay windows at the front with two feature fireplaces. A kitchen with large window further adds to the atmosphere of airiness and radiance and there is a separate dining room which opens to a sitting room with doors to the garden, a large downstairs office, utility room and a downstairs cloakroom. Furthermore there are four well proportioned bedrooms downstairs, one with en-suite bathroom and a family bathroom. The property has two staircases to the first floor, one leading to an impressive master bedroom with dressing room and en-suite bathroom.

The second staircase leads to a loft room ideal as play room and a bathroom.

Tel: 01293 582335 • www.inspireestates.co.uk Follow us on Twitter: @inspireestates and Facebook: Inspire Estate Agents

• 5 Bedrooms • 2.75 acres • 3 Stables • Electric Gate • Large Loft Room

Help to Buy - Everything you need to know The Government’s Help to Buy Scheme launched in October 2013 enables people to purchase a new home with a deposit as low as 5%.

However research has found that one in three buyers knows nothing about the Government scheme or how it works.

Firstly you need to know that there are two options available - Equity Loan and Mortgage Guarantee.

Equity Loan - For new build property only The government loans you up to 20% of the cost of a new build home, which means you only need a 5% deposit and a 75% mortgage to make up the rest.

How does it work?

Eligibility

With the Equity Loan scheme you can borrow 20% of the purchase price of a new build property valued up to £600,000. You won’t have to pay anything on the 20% loan for the first five years. In the sixth year you will be charged 1.75% of the loan’s value, which will increase every year by the retail price index plus 1%. Unfortunately the scheme is not available for all new builds. Your first step should be to check whether the developer that is building your property is taking part in the Equity Loan scheme.

• Available on new build properties only up to the value of £600,000 • Buyers need a minimum of 5% deposit • Must be your only property • Available to both first-time buyers and existing home owners

If the property is in the scheme you will need to complete an application form with the details of your mortgage and income and the property details you wish to purchase. Then a Help to Buy Agent will assess your application. If it is successful you will receive notification from the help to buy agent.

What you need to know You will have to pay back the equity loan amount when you sell the property or at the end of your mortgage period (whichever comes first). You can sell the property at any time and the selling price must be assessed by an independent valuer. You will need to pay back 20% of the sale price. This could be more than the original loan amount if the value of your home has increased whilst you have owned it. For the first 5 years of the loan you will not have to pay any loan fees on the 20%, however from year 6 onwards you will be charged 1.75% of the loans value, which will increase every year by the retail price index plus 1%.

With an equity loan they buyer owns 100% of the property from the day you purchase it. The loan is just like a mortgage.

Mortgage Guarantee - Available for both first time buyers and existing home owners/for new build and previously owned properties How does it work?

Eligibility

A minimum deposit of 5% of the property value will be required. The lender will then be able to buy a guarantee from the government up to 15% of the value of the property. This means that it is less risky for lenders to offer a mortgage and therefore should enable them to offer you cheaper rates.

• Available to both existing home owners and first-time buyers. Buyers need a minimum of a 5% deposit • Must be your only property • Available on all previously owned and new build properties up to the value of £600,000 • Available from participating mortgage lenders

What you need to know The Mortgage Guarantee scheme can only be used for property you intend to occupy, and must be your only property. The scheme only applies to repayment mortgages and does not apply to interest only and self-certified mortgages. The guarantee is provided to your mortgage company not you.

The lender will check you can make the mortgage repayments before they offer you a mortgage.

Inspire Estate Agents The informed choice

THE INFORMER : APRIL 2014

Aiming High with Careers at Oriel High School We are quite rightly very proud of our careers provision here at Oriel. While other schools are scaling back their provision we continue to increase and expand the opportunities for students to research and fulfil their ambitions.

All students are using the www.believeinyoungpeople.com website to record their achievements and build their employability profile, whilst looking at their personalised career matches and researching different industry areas in the exciting world of work.

Our year 11s have produced exceptional quality sixth form applications through the www.ucasprogress.com website, proving they have the ability to present themselves positively to the sixth form team. They have also had the opportunity to find out more about Apprenticeships as a progression route.

Year 9s are making important decisions about their options and the Speed Careers event was bigger and better than ever this year thanks to the amazing support of so many local businesses large and small.

It is this kind of support that makes the careers programme at Oriel so successful.

Budding entrepreneurs seized the chance to make their fortune in the Tenner Challenge, making as much money as they can from just £10.

Still to come this year, our Year 12s will attend the Higher Education Convention where they will have the chance to speak to universities and training providers as well as find out about alternative Higher Education routes and gap years. In the summer term they will all go on their work shadowing placement which they are currently organising and then they will take part in the Money Matters day in the summer term too in order to get a taste of how it feels to be in charge of your own finances at university.

Personal Development Curriculum (PDC) day gave Year 10 the opportunity to showcase their entrepreneurial skills by designing their own restaurants and menus before pitching them to a panel of judges, while Year 8 played the Real Game and were given a job description and salary to help them achieve their dreams, wants and needs. Year 12 also had their enterprise skills tested in a series of challenges which then lead to many innovative and exciting fund raising stall ideas for the Christmas Fair.

There are assemblies and parents meetings all year round on the calendar to help support your son and daughter through their education towards their successful career of choice as well as input though their PDC lessons.

We are very pleased to welcome Kerry Mann as our Impartial Advice and Guidance careers adviser and all of Year 12 are benefitting from her expertise as well as many year 10, 11 and 13 through a one to one meeting.

If you would like to find out how you can get involved or have any questions please contact me. nthair@oriel.w-sussex.sch.uk

Positively Gee

We already hold the Investor in Careers award and will be reassessed this year to show how our programme has successfully developed and grown over the last three years.

Nina Thair Director of Learning: Work and Life Skills

Making a difference

Sadly nearly a year ago Georgina Woodley who was a local girl sadly lost her battle with Cancer after being diagnosed with a rare Cancer, Rhabdomyosarcoma. Since then Positively Gee has been set up as a Charity in memory of Georgina and Inspire Estate Agents ask that you take a moment to read the Charity’s aim and Georgina’s full story on www.positivelygee.co.uk.

Georgina always had a smile on her face and fought her battle with a positive mental attitude.

She wanted to make a difference and always quoted “If you can’t get a miracle, become one”.

Therefore, it is with this in mind the charity was born and is headed by her Mum; Carol.

Positively Gee’s aims are:• To establish, equip, maintain and manage a healing and support centre and hospice for teenagers and young adults aged 13 to 25 suffering from cancer in Crawley and the surrounding areas.

• To offer support, counselling, advice, appointment support, specialist short breaks, emergency and end of life care for teenagers and young adults aged 13 to 25 suffering from cancer within the area of benefit.

• To offer conventional and holistic therapies within the Centre, home environments and additional community facilities.

• To offer support, counselling and advice to the families and friends of teenagers and young adults aged 13 to 25 suffering from cancer.

Tel: 01293 582335 • www.inspireestates.co.uk Follow us on Twitter: @inspireestates and Facebook: Inspire Estate Agents

They need to raise a minimum £2.5 million to build the centre, so if you would like to make a donation please visit the website www.positivelygee.co.uk

Parents would spend 10% more to live near a good school!

Did you know that nearly a quarter of parents of school-aged children would be willing to move house and pay thousands of pounds more for their new home in order to be in the catchment area of a good state school.

As a community focussed estate agent and having worked with Oriel High School on a business and enterprise project in the past we approached the school to find out if they were aware of this phenomenon.

New research shows that 23% of parents are prepared to pay between 2 and 10% extra for their house, while nearly one in 10 (8%) said they would fork out more than 10% extra.

A school spokesman said: “We are not sure we can comment on local house prices or rental values.

However the school remains popular and we have been oversubscribed again in Year 7 for September 2014. The school is here to provide our local community with a secondary school they can have pride and faith in”.

The extra cost would mean a substantial outlay. For example, an additional 10% on the cost of a typical UK home valued at £170,514 would mean buying a house worth £187,565.

The survey which was carried out by YouGov and published by the Nationwide Building Society last year, also revealed that parents are already making their house purchase choices based on schools.

Nearly a quarter of those questioned (22%) admitted that a school league table or Ofsted rating had influenced where they had chosen to live.

Matthew Cousins from Inspire Estate Agents said: “Choosing the right school for your child is possibly one of the most important decisions a parent will make and it appears locally that it is not only Ofsted reports etc. but the values and ethos of a school plays a significant part in that decision”.

Maidenbower is a neighbourhood in high demand from families looking to live near good schools.

When asked why they were so popular, the spokesman said: “Reasons why probably vary from family to family, but on the whole parents seem to take away the view that their child can do well at our school. Our local community buy into our values and culture. Our students have developed a strong sense of pride in being a student here. The students understand that the school and the local community have high expectations of them”.

So Maidenbower remains a neighbourhood with strong schools and this only adds to the value of your property.

As Oriel High School responded to our questions we asked them following our previous experience of working with their students if they would give the community an update on careers education at the school. As a growing local business we view careers education as key for many local young people.

Inspire Estate Agents The informed choice

THE INFORMER : APRIL 2014

TIME TO BRUSH UP OUR ACTS WITH DB PROPERTY SERVICES House prices have seen an increase within the last year, with market prices still moving in the correct direction…up! This coupled with less restraint on mortgage lending, should see vendors achieving top prices for their property, but a lot of the time this simply doesn’t happen, with vendors having to reduce property prices simply to achieve a sale, far from ideal when every penny counts!

Ok, so we all know that some prices will actually reflect the condition of property and that’s fine, price it correctly, or with the view that refurbishment works are needed and the price will mirror this, but these are the “fix em uppers”, auctioned or even repossessed properties are not easy to come by.

But the truth of the matter is, time and time again people are missing out financially on what they could potentially achieve as a sale, and this is generally due to a few areas of neglect putting potential buyers off.

But we see these trends above being repeated over and over with vendors unprepared to spend a little to achieve that “greater margin of sale”. Instead they choose the simple option of putting property on the market in its current condition only to reduce the price further down the line simply achieve a sale, madness in my opinion throwing money away and this is simply because of that poorly artexed ceiling, bad DIY, damp patch or maybe tired kitchen/bathroom (to name but a few). I ask why not simply do the works needed to achieve that desired price?

For example, if you have a house for sale with a few of the common problems listed below, and they are not addressed, it could potentially cost you thousands of pounds maybe even tens of thousands, when maybe the actual cost of the repairs doesn’t even come close to the hit you will take upon completion of sale should you choose ignore these problems and hope they are not noticed by the buyer! However the purchaser’s survey is sure to pick them up, this is when some sales fall through and at best stall the sale/legal process and intern potentially lose revenue.

The most common property turn-offs we see: • Damp patches/stains on walls and ceilings • Bad DIY • Artexed walls and ceilings • Poor colour choice/décor • Outdated bathroom/ensuites/kitchen.

• Unfinished building works • Paint flaking /poorly presented exterior The list above is just some of the key areas that, if addressed, will make a difference to the whole sale process, of course there are the quick fix things we can do to also push things along, cleaning, de-cluttering, and just generally making sure the property is ready for viewing, but it is essential this is not just done to hide the above property turn-offs!

In my experience the vendors that do, reap the rewards and achieve the price wanted! Its not rocket science, but people are generally generic in their thinking and as such, if they see something that they dislike in a property when viewing they will generally offer a price below market valuation to accommodate those shortcomings. The trick here for the vendor is to tick as many boxes as possible, but without being unrealistic.

Tel: 01293 582335 • www.inspireestates.co.uk Follow us on Twitter: @inspireestates and Facebook: Inspire Estate Agents

Here at DB Property Services we carry out all aspects of property maintenance from painting and decorating, plastering, plumbing, right through to complete refurbishment including kitchen and bathrooms with all projects managed from start to finish, and conforming to local authority building regs approval.

We have over twenty years experience of refurbishing properties for homeowners and/ or for re-sale purposes, we also keep a close eye on budget, and quote accordingly, so it goes without saying we know what works!

So with spring upon us, lets all “brush up our acts” and keep on top of improving/ maintaining our properties. Selling or staying, it’s the biggest investment we make, and as previously mentioned neglect can cost us thousands further down the road!

DB Property Services is here to help, we can provide a no obligation, FREE quotation tailored for your specific needs, from addressing small maintenance issues right through to complete property refurbishment!

Danny Baker - DB PROPERTY SERVICES Tel: Mob: Email: Web:

01293 888234 07711288550 danny_dbdecorating@yahoo.co.uk www.dbdecorating.com

A local Maidenbower company

TOP 10 INVESTMENT TIPS Is now a good time to invest in bricks and mortar?

If you are planning on investing or want to know more, see our essential top tips below to consider for a buy-to-let: 1) Do your research Take your time to look at the area and find out as much as you can about it. Find out the risks and benefits of the area. If you know somebody who is a landlord speak to them and ask them about their experience.

2) Do your maths Before you start looking at houses sit down work out the cost of the houses you are looking and how much rental you are likely to achieve.

You also need to consider if you can afford any works to the property should things break and need repairing, could you afford to put in a new boiler? Can you afford the mortgage repayment if the property was to be sitting empty in between tenants?

If the rent does not cover your mortgage repayments and associated expenses then the property is not for you, regardless of how much you like it.

3) Get the best mortgage Unless you are in the fortunate position to be a cash buyer you will need a mortgage. Buy to let lenders normally want the rent to cover 125% of the mortgage repayments and they now want a minimum deposit of 25% for rates that are above residential rates. However there is huge choice of mortgages available so it may be an idea to speak to a mortgage broker who can search the whole market for the best deal.

4) Get the best Rental yield To compare different property values you need to work out the rental yield (the annual rent amount as a percentage of the purchase price– eg. A yearly rental amount of £10,000 that cost £200,000 would be a yield of 5%.

Each landlord will have their own target yield. But typically the majority of landlords look for a rental yield of 6-7%. But you have look at what works best for you.

5) Decide how hands on you want to be?

When it comes to finding a tenant you have two options, do it yourself or use a Lettings Agent.

This will depend on your personal situation, how much time you have to commit to managing the property. Is the property near to where you live and do you have the time to be compliant to all the legislation that you must adhere to?

Many landlords with full time jobs prefer the convenience of using a fully managed service, however if you are retired or have the time you may want to manage the property yourself. But be prepared to take calls at all times of the day and night, deal with all types of problems and have a reliable list of contractors if things go wrong.

Being a landlord is a big commitment, so should you value your time and want to let and forget about it, then using our management service is a must!

6) Look at the properties that are the most ‘rentable’ Generally one, two and three bed houses and flats up to the value of £1100 per calendar month in Crawley are the most popular and appeal to a wider range of tenants. Larger family homes appeal to fewer tenants and can take longer to rent out.

The secret of success is preparation and planning as with many things: do your homework, know the rules and regulations, research the market thoroughly, decide which market you are in, prepare the property well, select your tenants carefully.

7) Choose your location carefully The right location is crucial! If you choose the right location the more successful you will be. This does not mean you have to buy in the most expensive area, it’s looking at the advantages of the area that tenants like – i.e. transport links, is the Fastway bus or train station nearby? If it’s a family property you are thinking of buying is there a good school nearby?

8) Is the property freehold or leasehold?

Generally most flats or maisonette’s are leasehold. If the property is leasehold you need to be checking the length of lease remaining Generally lenders require 40-50 years + the length of the mortgage.

I would personally then want another 10-15 years on top so 8590 years remaining on the lease. You also need to be aware of the maintenance charges as these eat into your return and to check that there are no restrictions on letting the property out in the lease or will the management company charge you for the privilege of letting out!

9) Do you have an exit strategy?

When setting of on your buy to let project you need to consider an exit strategy. If you are looking at buy to let it needs to really be a long term project to reap the benefits, however when you do come to sell you want a property that hopefully will have grown in value and will be sellable. If you do have to sell you still want to be able to get out and make a profit. This is one of the most crucial points and where many people fail and end up losing a lot of money!

10 Understand it’s a business not a hobby!

Investing in property can be a full time job. A really successful investor outperforms the market by either adding value or buy buying competitively.

Property can be an emotional purchase because it’s tangible. But if the maths work, you don’t need to see or touch it. Once you know the market and have a model that works, carry on with that formula, if it works why change it!

Remember profitability is the key to success!

Working closely with David Bone at Sturdy Edwards, Inspire Estate Agents can provide investors with a platform to help identify the right buy-to-let mortgage for your needs.

As well as providing impartial advice on all aspects of buying and letting and investment property.

Inspire Estate Agents The informed choice

THE INFORMER : APRIL 2014

OUR TRUSTED TRADERS Including The Mobile Carpet Shop The Clock House High Street, Henfield, Sussex BN5 9HN

Office: 01293 415197 Shop: 01273 911540 Mobile: 07887 855313

getting under people’s feet since 1986

mobile:07823778189 Office: 01293 611503 e-mail: simoncornock@sky.com website: www.electricianincrawley.com • Rewire • Landlords certificates • Safety certificates • lighting • extra sockets • PAT testing • fault finding

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• Kitchen, Bathroom and Bedroom fitting • Doors & Bespoke Carpentry • Tiling, Laminate & Wooden Floor laying

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David Bone Dip PFS Associate Director Sturdy Edwards (Financial Services) Ltd 193-193A London Road, East Grinstead, West Sussex RH19 1HA

For a Free-No Obligation quote call Nick on:

Mob: 07584 057 864 Tel: 01293 614 254

Tel: 01342 313733 Fax: 01342 410320 www.sturdyedwards.co.uk

Ian Drewitt 18 Brighton Road, Crawley, West Sussex RH10 6AA

Rick Conley

Tel: 01293 526031 • Crawley: DX 57109

Gas Safe Registered Engineer

Fax: 01293 562390

Plumbing & Heating Mob: 07949 823010 Email: conley@gmail.com

Email: ian.drewitt@lewis-dick.com www.lewis-dick.co.uk

12 Southgate Parade, Southgate, Crawley, West Sussex RH10 6ER

Inspire Estate Agents The informed choice

Tel: 01293 582335 • www.inspireestates.co.uk Follow us on Twitter @inspireestates and Facebook Inspire Estate Agents

Company No. 06944084