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April 2005
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 Liz
Hodgkinson interviews an actress who has also made good in the
property world
What Annie did next
Three years ago, Coronation Street actress Annie Hulley
started vaguely thinking about investing in buy-to-let. Now, the
actress who played Jim McDonald’s scheming girlfriend Gwen Loveday,
has an impressive portfolio of eight investment properties – all
by doing some very clever scheming of her own.
By thoroughly researching the market, looking for bargains and
negotiating hard, Annie has already become a property millionaire,
several times over.
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How did she do it so fast?
Annie, now filming Family Affairs for
Channel 5, said: “Firstly, I investigated suitable areas to buy. I
had to go to the City Airport in London to fly to Ireland for a job,
and saw Canary Wharf. It looked like an up and coming area, and when
I got back I started to nose around there.
“Because I live in an old house myself,
I wanted properties that were maintenance-free, so I began by
looking at off-plan developments, where you are offered a discount
because you are buying into something that doesn’t yet exist.”
Annie was interested – but before she
took the plunge and bought, she sussed out the rental market in the
area. “Letting agents were quoting me a weekly rental of £450 for
the two-bed apartment I was considering buying. But before taking
their word for it, I used my acting expertise to pose as a tenant
looking for an identical apartment.
“Here, I got a very different story. They were saying, £325 a week.”
Now that Annie knew the real rental
price, she was able to negotiate harder with the developer. She
bought her first off-plan property in October 2001 for £275,000; it
was finished 18 months later.
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Liz Hodgkinson is a prolific author
and journalist contributing to many publications. She
has written over 40 books on a wide variety of topics
and has a background in national newspapers. She now
falls into the 'later-life' age category and in
recent years has started writing for this 'older'
market, and contributes to Saga magazine, among
others.
Liz has two sons and four grandchildren. She is
divorced and now lives in London and on the
South Coast. She has written three books on property
matters and her interests include snooping round
other people's houses and viewing showhomes.
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“Once I knew what I could get in rent, I could start to work out
proper figures,” she says. “I did not want to use up all my own
capital, so I got an 80 per cent buy-to-let mortgage. Once the place
was finished, I furnished it myself for less than £4000. Furniture
package companies charge £10,000 minimum, but I knew I could do it
cheaper.”
On completion, the property rented out immediately for £350 a week.
“My
secret was to put in a very expensive mirror, so that prospective
tenants would remember the flat, and it became ‘the apartment with the
mirror.’ You only need one expensive or good-quality item to steal a
march on the competition, especially when dozens of identical
apartments all come onto the rental market at the same time.”
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Within six months of buying her first property, Annie started
negotiating for another off-plan apartment. “One important lesson I
had already learned was that one-bed flats usually make a wiser
investment than two-beds. They are cheaper to buy, cheaper to furnish
and easier to rent out. So I now started to buy one-bed flats at
between £200,000 and £230,000 each, which meant I only paid one per
cent stamp duty.
“The major drawback to one-beds is that they do not always come
with parking, so they must be no more than five minutes away from
main transport links. Otherwise, today’s clued-up tenants just walk
away.
“I also learned the importance of knowing about square footage when
buying off-plan. At first it meant nothing but then I started
literally pacing it out. If the apartment seemed too small, I wouldn’t
buy. When going for off-plan, you have be able to visualise everything
in advance – and be prepared to do a lot of research. Not every
off-plan development is a bargain.”
One-beds in Canary Wharf currently rent out for £240 -£250 a week,
not more, so Annie will only buy if she can achieve a gross rental
yield of five to six per cent.
“Ideally, I would like 10 per cent, but in the current market it is
just not possible. Rents are, though, finally rising and voids are
shorter. This has already made a significant difference to my
portfolio.”
Annie believes that it’s vital to use a well-established letting
agent. “I have only had one bad tenant, and that was when I went for a
cut-price deal with a new agent who did not belong to any of the
professional bodies. Because I am lucky enough to remain busy as an
actress, I have gone for full management, and now always use the same
agent, Felicity J. Lord.”
As a canny investor, Annie says she wants the best of both worlds
– a steady rental income plus an appreciating asset. She has six flats
in Canary Wharf, one in Kentish Town and a holiday let in Whitstable,
Kent, an up and coming resort she discovered while playing Mrs Astley
in the lesbian drama Tipping the Velvet. All have increased in value.
Annie’s final tip is: “Make sure you keep some capital handy, as there
are always, always, unexpected maintenance costs, even when buying
brand-new.”
Annie
Hulley is the author of: How to be a Property Millionaire: From
Coronation Street to Canary Wharf. How To Books, £10.99
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