Is it time for Bournemouth landlords to sell up?

Since the budget two weeks ago I have had a number of blog readers call and message me regarding some of the changes and how they will affect them going forward. It’s great talking to you all, and please do continue to get in touch if there is something on your mind that you wish to discuss. I did want to share one of the big questions I have had asked quite a lot however, and that is whether it is time for Bournemouth landlords to hang up their boots and sell up.

Landlords have been coming under increasing attacks over the last few years, and the latest budget didn't fail to pack another few punches. The Stamp duty tax increase of 3%, the capital gains surcharge of 8%, the reduction interest you can offset against tax coming next year. It almost seems as if landlords are on par with bankers to be the most disliked group of people. But why is that?

Housing tops the investment Charts in 2015

Why Bournemouth housing beats any other types of investments

Housing tops the charts for the best annual return on investment in 2015 for the first time since the recession. It is the only investment in 2015 to beat inflation and has given over 8% of a better return than the next class which was Shares.

Housing has always been known as a great investment – ‘Safe as houses’ was a common description, and rightly so. It is always in demand, you can physically see it, and over time it would always go up in value. But according to data supplied by BullionVault, since the recession hit in 2008 housing has been consistently outperformed by Bonds, Shares, Gold and even lower than inflation in some years. However last year, the average return for the property investor hit 9.48% which is by far the best performing investment class, and indeed the only investment to beat inflation.

How the Budget 2016 affects Bournemouth Landlords

Stamp Duty 3% surcharge, Insurance Premium Tax increase, Income Tax Changes. Just another budget right? But how is this going to affect YOU - The property owners and investors of Bournemouth?

Hello everyone! My regular blog followers will notice this week’s article has been posted up quite late. It’s been a very busy month, and I wanted to write a special article following George Osbourne’s 2016 budget announcement. There are a number of huge announcements that will affect Bournemouth landlords that have been announced, from Stamp Duty changes to Income Tax changes, so I hope you find this article helpful.

What is your Bournemouth property investment yielding?

According to a recent survey, over 45% of landlords don’t know what their buy to let property is yielding for them. The majority of which state their main reason is due to their lettings agent who takes care of this, but they haven’t been communicated too! Around 20% of landlords do not know what their investment is yielding because they don’t know how to work it out. Maybe that is a reason for some of the 68% of landlords who didn't increase their rents last year despite the increasing costs.

As well as the number of professional landlords who invest in the Bournemouth area due to the great returns on investment and capital growth, there are a number of new investors and accidental landlords who have buy to let properties in the area. In fact, I have worked with a number of new investors recently all of which have huge amounts of energy, enthusiasm and high aspirations. Now that is all great and will really help them move forward and growing their portfolios, but what they don't have is knowledge and experience. Working with an experienced lettings specialist is vital, and a good one not only tells you what a good investment property will be, they educate you as to why it would be a good investment and how you can work it out for yourself. That is my aim at least.

Is this the end for first time buyers in Bournemouth?

The Bournemouth property market is at an all-time high. Coming out of January with the highest property growth of any UK town (2.9% growth compared to the UK average of 0.2%), and property transactions the highest they have been for many years. All the signs point to a great few years of investment and capital growth in and around Bournemouth. But is all of this growth pushing first time buyers out of the market?

I had the pleasure of meeting one of my younger readers of the blog, a university student studying multimedia who wanted to interview me for a TV news project he was doing. Talking about the local property market, in particular how it has changed over the last 20 years, Jack raised some very good questions. Yes, the market growth is certainly great for investors and home owners who have a growing asset, but what effect is this having on people looking to get on the property market – the first time buyers.