City and Town Estates

09/03/2022

Mortgages will be more expensive and more difficult to secure as interest rate and cost of living are going up.

If it’s time to refinance soon or if you are looking to get on a property ladder, it is a good idea to start shopping around for your mortgage now.

More news are surfacing about fewer mortgage products being offered this month than in February. This means that less choice will lead to fewer cheaper options.

Also, it’s uncertain how lenders will react to higher fuel and energy costs and the rising cost of living but it’s logical that the lending criteria will get even tougher.

It will be wise to secure your mortgage offer now, especially if the offer is valid for 6 months.

If you are getting your first mortgage now, a five year fixed rate product might be a good idea

22/01/2022

Check out this Elegant, Grade II listed beauty in the heart of



https://www.instagram.com/cityandtownestates/p/CZBmPjzIkF8/?utm_medium=copy_link

08/12/2021

Invest in a Cash flow, not in potential price increase-don’t pretend to have a crystal ball.

With high inflation and uncertainty in the strength of the British pound, investing in a property is a wise decisions.

There is a big difference between a reliable investment and speculative one. Counting on the price increase is as safe as bidding.

Investing in a healthy cash flow is the first and the main criteria an investor can have. There is a reason why lenders want to know how much income a buy to let property generates, AKA how much is the cash flow. Everything else is secondary. Aim for a healthy 6-8% rental yield. Consider HMO if higher rental yield is your aim. If buying a leasehold, take into account service charge & ground rent as it will eat into your profit and it should be deducted before you calculate your rental yield per annum.

Rental yield: Monthly rent multiplied by 12 months and divide by the purchase price = rental yield.

Got your 6%? Excellent, just think about the possible exist strategy-resale. For example less people will be able or interested to buy your HMO property from you.

Don’t roll the dice and ask professionals for a good advice.

09/11/2021

Rental prices are going up outside London.

It has been reported rents outside London rise at fastest rate for 13 years.

We recently let a 3 bedroom home in Bexleyheath for £1,750 a month when it was previously let out for £1,400 a month. Another 3 bedroom in Dartford was let for £1,450, up from £1,315.00.

The rise was stimulated by everything opening up and people coming back to normal life.
Seasonal factors were at play in September in August with students and families gearing up for the year ahead and making their moves. On the other hand the supply is short.

This trend will continue so If you are a landlord with a property to rent, the current surge in tenant demand is good news.

For tenants moving from London it is still possible to get more for your money. So there are positives all around.

City and Town Estates is a an experienced agency based in London. We provide a dedicated and individual service to all our clients. Our offices are open Monday to Friday 9:00am to 7:30pm and on Saturdays and Sunday 10:00am to 2:00pm).

31/10/2021

CHANGES TO HELP TO BUY SCHEME AS WE KNOW IT.

According to the new budget announcement, Help to Buy scheme used to help first-time buyers get a property with just a 5% deposit will end by 31st March 2023. This means that to buy your first property, more deposit will be required. However, as we all know nothing is really free and this benefit was offered with many strings attached which will not apply when buying without the scheme even now.
So, let’s see the positives as it is not all gloom and doom. When buying a property without help to buy scheme, the owners are free to sell and enjoy the equity, let a property out or change to a let-to-buy to keep the property and buy another one. Owners are also free to refinance at a better rate.

If you still want or must enjoy the scheme now, you have 18 months to do so.

Want to know how much you can borrow at this time?
Most of mortgage lenders are willing to lend at 4.5x your annual salary.
In some cases, this will exceed to 5x your income and a very few cases to 6x - but in exceptional circumstances as it seems.

11/09/2021

First time buyers now make the majority of property purchasers in London.

Buying your first home may not be easy but it does not have to be difficult either.

Here are some tips for first buyers to make life easier.

1. Know your budget.

Before you make a call or send your first enquiries, it’s important to know what you can afford.

How much you can borrow with your earnings, how much deposit you will need and let’s not forget legal costs, etc.

2. Use a real estate agent.

Using agents to buy a home isn’t required, but it’s definitely someone that you’d want to have on your team to make the already stressful home buying process easier. The commission is covered by the sellers, so you don’t pay anything extra.

Very often we see sellers advertising their homes on “Free” websites, this does not represent any savings for buyers!

These listings are very often wrongly priced and can be higher than the market value is, so it’s best to check other similar listings before making your offer.

3. Have an agent you enjoy working with and who you trust.

Find an agent that is knowledgeable, that you trust and who can help guide you through the process.

An agent will advise you on realistic offer, time lines for completion and will keep all parties up to date

4. Change your property according to your life style.

It’s very unlikely someone will buy their first home for ever. We fall in love, meet partners, family may grow, a parent may need looking after or kids fly the nest. It’s important to see if your new property is future proof or desirable for potential future buyers.

The cost of moving has become very high so if your property has a slightest potential for expansion, this is ideal. Of course, you can always move and let your property out or sell, so it would be good to know if the property is generally desirable.

5. Don’t look at the age of estate agents.

Some young estate agents may know the market very well and some older ones may not.

Age does not really matter here but experience and commitment does.

6. Get to know the area.

Your may have a good idea about one area or another but have an open mind, be ready to compromise.

Listen to what agent has to say. Agents can tell you about the areas that you did not know about but which may work for you.

7. Ask why?

There is nothing wrong to ask why the house is for sale. Current owners most likely upsizing, downsizing or moving closer to work, schools or relatives.

Do ask the reason for moving and get a survey done to make sure the property is structurally safe & sound.

8. Is it a good time to buy?

Don’t look at the market more than your personal life.

The prices may go up or down, you may not be 100% satisfied with everything but don’t miss the boat.

Keep first thing first and make your move!

26/08/2021

Property market is hot again.

Latest property news are pointing out to a big price jump in the latest months. After the lockdown restrictions were lifted, there is a huge activity again.

One of the reasons is that the coronavirus pandemic resulted in shift in where some want to live. Many are moving away from the cities to rural and seaside locations, looking for properties with gardens and office space.
On the other hand, many are moving closer to work in order to avoid the commute.

The demand is clear & obvious and suppliers are still playing catch-up.

25/08/2021

Here is a good advice:

Why try to cheat your estate agent?
Even if you’re highly smart, it’s not worth trying to cheat your agent as you will get found out. Most likely you’ll end up posting a photo of your new home on social media!

So, rather than asking someone to work for free, spend more time considering which agent is right for you and your property. Also, try to think of a way to motivate them into selling your home faster and to some one serious and some one able to stick to their commitment.

Can you increase their commission if they sell within six weeks?
Could you refer some business to them after a successful sale?

Offer them a unique bonus that has special meaning for them? Not a bottle, thanks, we know what you like.
Take them out for a fancy meal if they sell within six weeks.
By working with and not trying to cheat your estate agent, you will increase your odds of selling your property and moving to somewhere more suitable for your current needs.

Treat others like you want to be treated.

13/05/2020

Breaking News from LettingAProperty:

Property sales and lettings restrictions lifted

As from today (13th May), we will be able to undertake any of the following activities in connection with the purchase, sale, letting or rental of residential property:

- viewing residential properties to look for a property to buy or rent;
- preparing a residential property to move in;
- moving home;
- visiting a residential property to undertake any activities required for the rental or sale of that property

We will still need to follow social distancing rules by keeping more than 2m (6ft) apart from anyone you don't live with.

If you would like to discuss your property, rent arrears or anything else, we are here to assist you.

Website: www.cityandtown.co.uk

Best regards

Max Elets

30/11/2019

Buy a property for cash only if it’s really cheap otherwise consider buying two properties with the mortgage.

Auction is one place where a property can be bought for cash or only for cash.

Here is the thing, if at the auction the price is reaching or even close to the market level, you should ask yourself, why you want to buy that property and pay such large amount of money upfront. On the other hand, you can get a mortgage and buy more than just one property.

I am not saying that you would be able to buy four properties with 25% deposit instead of buying one but most likely two using 75 LTV mortgage. Let’s not forget stamp duties & refurbishment costs, etc.

Still, here are the main reasons why I think that it’s better to have two rental properties with mortgage rather than one and without the mortgage.

You can maximise your return on investment.
Rental net income from two properties after mortgages and taxes deducted should match the level of income from one property with no mortgage. So the return on investment will be higher or the same.

Consider property price appreciation.
In many cases, the value of two properties bought at the right price, will increase in time greater than the value of one property only. Just make sure you check the market and buy at the right price.

Don’t put your eggs in one basket, (I know you know), but one area may not develop as good as expected. A great example in London is the delay of construction of the Crossrail where Thamesmead area is still due to benefit. Also the plans of regeneration in some arrears might be delayed due to Brexit.

Having two streams of income is better than one, right?
As your agent, I would make sure that we find suitable tenants quickly to avoid having property empty.
However if you have one property which is empty or tenants delay rent payment for one reason or another, your invested money will not be generating the desired income.

On the other hand, two or three rental properties will be much more reliable source of income as the investment and the risk is spread.

So if you are looking to invest your hard earned money for a relatively long term. Reasons could be; to build a property portfolio to create wealth or help your children in the future, then perhaps it’s best to try to get a mortgage and to buy two properties rather than one.

To sum up, if your motives are even slightly long term orientated, two mortgaged properties would be better than one without, and three mortgaged properties will be even better.

So, should you buy an investment property entirely for cash, without any mortgage, yes but do your diligence and aim to buy 30-40% below the market value as it will give better equity and higher return on your investment otherwise, tell me please, what’s the point?

12/12/2018

Attention Stoke Newington Landlords!

There is a new deadline for landlords who need to apply for landlord licence in Hackney. It’s now 28th February 2019 (according to Hackney Council website).

Apparently, too many landlords did not manage to get their application in by 2nd December (old deadline).

It’s our understanding that many landlords just don’t know about this new introduction.

According to Hackney Council website, first to register are the landlords who own a non-HMO property located in the Brownswood, Cazenove or Stoke Newington wards (three out of twenty one wards of Hackney).

To check which ward your property is in, please use this Hackney Council link:

http://www.map.hackney.gov.uk/Find-My-Nearest-Internal/

For more information, don’t hesitate to contact us or check Hackney Council website.

We hope this helps, stay calm and carry on.

This site has been created by the London Borough of Hackney. The site provides access to information and online requests about the priority services delivered by the council and its partners.