Saturday, August 09, 2008

Bicester Agents get Blue Door'd but we come in peace


Oh yes. What agents in Abingdon and Oxford have long known and feared will now be visited on Bicester agents.

They will do market appraisals and hear potential landlords say "We've had Blue Door round, can you tell me exactly what you do differently for 12%+VAT of my monthly rent? They will probably mutter something like "We pay a man to put up an unsightly board which advertises our company at your expense" or "We will put one tiny picture of your property among 20 others on a page of a newspaper"

They will struggle to come up with anything else really because that is all they do that we don't do. the list of what we do that they don't do is a bit longer.

They need to take heed. They will need to up their web advertising from one paltry photo to at least 10 or so. They will also need to answer emails late at night, take phone calls on a Sunday, do viewings and MAs at times to suit the customer not the office tea and biscuit schedule and they will need to charge a more realistic fee for their work.

Flat fees are the way forward. No renewal fees are also more honest. We're unusual: they are all the same.

They don't yet know how many properties we have in Bicester because they won't see any boards, we don't always get time to put properties on our website either as they are snapped up too fast. We remain a mystery to the competition and that's how we like it. We expect more 'phishy' emails enquiring about our fees from dodgy Hotmail addresses as our name spreads on the lips of those who love us for what we are.

Here's a little bit of maths for you to try out.

What is 12% of £750?

Use the % button on your calculator if you like or do this: Multiply 725 by 0.12 (12 hundredths, which is what 12% is) then press equals. You get 90.00.
Make it into money £90.00 then add VAT if you are sitting down.

YIKES YIKES YIKES!

Now compare Blue Door's fees

Rent PCM

Blue Door

Management Fee

Percentage

of Rent

£695.00

£65.00

9%

£750.00

£65.00

8.7%

£850.00

£65.00

7.6%

£950.00

£65.00

6.8%

£1200.00

£65.00

5.4%



Even when you add VAT our fees are a reasonable £76.38

If you do the maths and find that you are paying too much for the management of your rental property give us a ring. If you don't have a rental property and this means nothing to you - tell someone else! If we get their business, you get £50. Simple.

Friday, August 01, 2008

Good news from houseladder! Click link at bottom of the post!

Decent arguments for staying in buy-to-let market

Posted: 24 Jul 2008 14:08:59 GMT

According to finance site, fool.co.uk, there are a number of "decent" arguments for landlords to stay in the housing market.


The site quotes figures from Paragon Mortgages buy-to-let survey, which shows that rental yields reached their highest level in two years in June and are now at 6.4 per cent and seven per cent.

Welsh landlords and those in the north and north-west are most profitable achieving seven per cent rental yields.

Research reveals that rental incomes have also risen by nearly 12 per cent over the last year and property values have, according to Paragon, risen by 7.5 per cent year on year.

However, Paragon did admit that property prices have only risen by 0.2 per cent over the past six months.

Commenting on the current situation for investors, Christina Jordan of fool.co.uk said: "It seems that for the serious buy-to-let investor, the market is still attractive in many ways. Added compliance costs, plus the added mortgage costs are not enough to put off landlords who are still seeing a decent return on their investment."

Ms Jordan also makes the point that with many first-time buyers finding it difficult to get on the property ladder, the demand for rental property is currently high.

© Houseladder Ltd