Blending work and passion

Now, if one of your friends asked you what your dream job was – the thing you would envision yourself doing for the duration of your working life, what would your response be? Might it be a job that allowed you to earn a lot of money? You might say that money can buy you the things you want and the lifestyle you aspire to lead, but sometimes spending time doing something you may not necessarily like can have its limitations. Consider, for example, being a teacher. Now, teachers have paid leave for many weeks every year, they have half term holidays, end of term holidays, and long summers. But ask any teacher if they are in the job for the holidays, and I’m sure you will get a strict “No!” Firstly, no one would admit to being a teacher for the holidays, I guess. But teaching salaries rise year on year with experience, according to a scale – or to use the words, pay-spine – that you don’t really have to be better at your job to get an automatic raise. But it is a job that pays well, has many days off, yet you will find that there is a shortage of English teachers and many are leaving the profession. Clearly, the money is not necessarily the motivating factor.

And what about passion? If you like the job, doing what you love will give you a lot of job satisfaction. Yet will it give you the job security and the money you need away from the work? Speak to a musician in a band. In their twenties maybe playing in a band, gigging and performing to crowds is cool. But as they age and get to their forties and have responsibilities like children, the travelling and money may not be enough. So passion itself is not necessarily enough.

How does this work in a property context? Don’t be blinded by how the tales of income streams and revenues will come by easily, and you can earn lots of money doing nothing. It is a lot of hard work! You may not enjoy it, but you may tolerate it because the income would give you chances for leisure, such as scuba diving, playing the piano, travelling – or whatever else you prefer. Property management is not someone paying the mortgage on a property you own – make sure you know fully what you are getting into!

Renting in the UK and Europe

With renting and home ownership in the UK a big talking point, let us examine how renting compares with other major European cities.

Renting remains the choice for the majority of Germans, who are at the bottom of the list of European homeowners, with just 46% of households owning their own home. People much prefer to rent, for a number of reasons which range from the historical to cultural and economic. Wartime bombing destroyed about 20% of residential areas in German towns and cities, at the same time as refugees from eastern parts of the former Reich who had lost everything, streamed into the country and in 1950 there was a drastic lack of living quarters.

Culturally, there is nothing like the drive to want to own as there is in other countries. Banks do not help by being unlikely to give a mortgage to anyone unless they can provide 20% of the purchase price, and on top of that high add-on costs such as extortionate estate agent fees (typically 7.14%) and stamp duty of up to 6.5% do little to entice people to buy.

Renters have felt safe in the knowledge that the law is more on their side than that of the landlord. However in recent years soaring rents in many German cities – often fuelled by largely foreign buyer-driven property booms currently being experienced in cities such as Berlin and Munich – have led to increasing social disgruntlement, sparking a recent wave of street protests across the country.

However, the percentage of their income Germans pay for rent is still relatively low compared with other countries – 25% in Munich, 21% in Berlin, Cologne and Frankfurt, while the national average is 27%. This compares favourably with London, Warsaw, Madrid or Rome, where it is more than 40%. While this remains the case, few people will have an incentive to buy, experts believe.

Spain has traditionally had a high rate of home ownership, about 80% in 2008, when the building boom ended and the bubble burst. It has now slipped back to about 78% but is likely to fall further as unemployment remains high and mortgages difficult to obtain.

An inevitable result has been a rise in rentals and rents. Rents have been pushed up by demand but also by Airbnb and other holiday rental platforms. According the housing platform Idealista, rents in Barcelona have risen 55% since 2012 (23% in Madrid).

Rental contracts tend to be for one or three years, after which they may be terminated or renewed and the rent renegotiated. Rent-controlled apartments dating back to the Franco era have mostly disappeared. Increasingly landlords in tourist areas are demanding excessive rents to force tenants out, so they can turn apartments into lucrative holiday rentals. A flat with a rent of €1,000 a month can make five times that as a holiday let. Eviction also continues to be a serious problem as lenders are reluctant to negotiate terms.

In Ireland, price controls were introduced in early 2017 amid soaring rents in Dublin’s super-heated property market. The “rent predictability measure” caps increases to 4% a year for three years. But, one year later, the rent controls have done little to halt rises. According to website daft.ie, rents jumped 10.4% in Dublin in 2017, and at an average of £1,476 in the north of the city and £1,675 in the south, are now substantially higher than the average for London (£1,276).

Like the UK, high deposits and high house prices – along with strict lending rules – are turning home ownership into a distant dream for many young Irish workers, particularly in the capital. Home ownership rates peaked at 80.1% in 1991, but have now fallen below 70%. Amid a worsening homelessness crisis and a lack of housebuilding since the country’s economic crash in 2007-08, housing has moved to the top of the political agenda. Stories of desperate queues at new housing developments abound, while just a fortnight ago more than 10,000 marched through the capital demanding action on housing.

French tenants benefit from much stricter rules on landlords than in Britain. Rents on unfurnished dwellings are only allowed to be increased by an index, called the IRL. This year it permits an annual increase of 0.51%, and was close to zero for much of 2015 and 2016. Anyone renting an unfurnished property as their main residence is given a minimum three-year tenancy with an automatic right of renewal after three years, or must give three months’ notice if they want to leave. If the landlord wants the tenant to leave, they must give them a minimum of six months’ notice. Landlords must also give the tenant a first right of refusal if they wish to sell.

What’s more, eviction is forbidden in the winter months. A rule called la trêve hivernale (the winter truce) runs for five months from 1 November when landlords are not allowed to evict their tenants for any reason. It is meant as a humanitarian measure, but it also means evictions jump on 1 April.

Rent controls and tenancy protections in the US are decided at the state level. In dozens of states, laws promoted by the conservative American Legislative Exchange Council, such as Illinois’ 1997 Rent Control Preemption Act, prohibit municipalities from passing laws that regulates rent. Last month, an advisory referendum in Chicago to lift the ban on rent control won 77% approval. The “Lift The Ban” coalition says a third of Chicago households cannot find affordable housing, and that a minimum wage worker will have to work 106 hours a week to afford the average city rent.

Elsewhere in the US, New York has the longest history of rent controls. More than 1m apartments in the city are rent-regulated under a complex set of laws. A tiny number have full rent control, with rents substantially below commercial levels. The vast majority enjoy rent stabilisation, controlled by the Rent Guidelines Board. It froze rents in 2015 and 2016 but in 2017 voted to allow landlords rises of up to 2%.

Home ownership levels have been falling in the US in common with much of the developed world. It peaked in 2004 at 69.2%, then fell to 62.9% in 2016, though it has recovered mildly since then.

Investing in Devon

According to some estate agents, Devon is fast becoming a good place to invest in.

Actually, that is not news. The Southwest has often been a good place to park your money in property. The region offers picturesque coastlines, a lovely country feel and loads of open space for your money.

Gill Fielding, founder of Fielding Financial, based in Totnes, claims that Exeter and Plymouth make particularly good investment areas. The towns both have Universities which attract high numbers of students, and hence can command high rental demand.

Also located within the vicinity are good hospitals and sporting facilities, which make them attractive to those actively seeking to rent.

The rise in tuition fees has put strain on students looking to enter University and do a degree and tuition fees of up to nine thousand pounds a year are now common. This has meant that universities which offer degrees for less cost, which would normally not have had a look in, are being considered. Traditionally these have been in the coastal regions, away from big cities, so the lower fees along with cheaper rents have started to make them look attractive to others. Ironically, this demand for rental properties will only push the rates higher for successive students.

How would you invest in property? Find an area that is in demand either by professionals or students. Good transport links, especially rail links or a tram network are essential. This means your property can be easily accessible without the use of a car, and within commute of the big cities. Some landlords even recommend checking out the local rail network timetable to see how often the trains stop, as properties along these areas tend to be more attractive. And if you can find an area that is cheaper to live in, invest in it quick before it is gone!

But it is not just about demand and transportation. Look at the entertainment scene and public facilities. Most rental properties are for younger people who have not yet managed to buy, so if the area you are investing in has an active entertainment scene, such as clubs for bands to perform, or comedy clubs, you may garner more rental income. Pubs, cafes and other social settings are good indicators. Which young person would choose to rent in a place with no social life and feel alone? Not many.

Whatever you do, though, if you do invest, you must make it entirely clear to your tenants that they should not sublet the property out. Increasingly, with the rise of sites such as airbnb, tenants are trying to gain income by even renting out their rented properties without permission. This has resulted in a lot of disputes between landlords and tenants which could have been avoided if tenants had been made aware of their responsibilities. And as a landlord, you would save yourself a whole lot of trouble if you had this point emphasised during the signing of a lease.

In any event of a dispute, remember you can refer to the property ombudsman for mediation. Tpos mediates between tenants and landlords and all other issues relating to property.

A brief history of housing in England and Wales

The historical recognition of the form of houses tends to be identified by reference to a period of English architectural style, for example Tudor or Victorian. The majority of the current housing stock dates from the middle of the nineteenth century and later, although there are earlier houses in existence, such as sixteenth century (Tudor), seventeenth century (Stuart, Carolingian, William and Mary), eighteenth century (Queen Ann, Georgian) and early nineteenth century (Regency). Nearly all of the extant houses of the sixteenth, seventeenth, eighteenth and early nineteenth centuries are houses that were built for the so-called middle class (e.g. merchants and professionals) and upper class. Only rare examples of cheaper housing from these periods still exist.

The mid- and late nineteenth century (Victorian) saw a huge boom in the construction of housing in response to the mass movement of people from the countryside into the cities as a result of the Industrial Revolution. Cheap terraced houses for the workers, more spacious semi-detached houses for the managers and detached villas for the owners were developed in vast numbers on the outskirts of older towns, often by speculative builders, sometimes by the well-off themselves. These houses had solid walls of brickwork and/or stone, sometimes finished with render, roofs of clay tiles or slates, brick or timber-framed internal partitions, gas lighting, rudimentary cooking, washing and lavatory facilities and coal fires for heating. Much of the cheapest housing was of poor quality, using, for example, sun-baked bricks, and has subsequently been demolished. However, large numbers of terraced, semi-detached and detached Victorian houses are still in existence, albeit modernised at various times during the intervening period.

Houses built in the first decade of the twentieth century (the Edwardian period) are considered by many experts to be the pinnacle of quality in terms of workmanship and materials. Facilities are similar to those of the preceding century but of better quality. This period also saw the rise of the Garden City Movement, based on the writing of Sir Ebenezer Howard, who was highly critical of the urban development of the period and promoted the idea of a planned city with generous public spaces and buildings, low-density houses with large gardens in broad tree-lined streets and separate zones for factories and other industrial development. This led to the creation of garden city towns, such as Letchworth, Hampstead Garden Suburb and Welwyn.

The period between the First World War and the Second World War (the inter-war period) saw much greater state intervention in housing. Previously, involvement on the part of the state had been restricted to the provision of legislation encouraging local authorities to take action, but now the government legislated and provided the funding for the development of council housing, i.e. local authority social housing. There was also considerable private speculative housing development, leading to the suburban expansion of many cities. Both the council and the private housing of the period, particularly the former, reflected some of the principles of the Garden City Movement, especially the low-density housing, large gardens and broad tree-lined streets. This period saw cavity-wall construction and concrete foundations become standard. Floors and roofs were still constructed using cut timbers, bathroom and kitchen fittings were installed as standard, but were still very basic, hot water was often provided by a gas heater and space heating was again based on open fireplaces. Many rural houses still had no piped water, mains electricity or mains drainage.

During both World Wars housing development was suspended and after the Second World War little housing construction took place, apart from repairing bomb-damaged houses, until the mid-1950s when the post-war period of house building really commenced. Both council housing and private speculative development boomed for the next 20 years, although the standards were still relatively low, e.g. few new houses had central heating and roof insulation was non-existent until 1965, and then only minimal. However, most rural properties now had mains electricity and water, and mains drainage became more common.

Gradually, from the 1970s onwards, trussed roofs, often finished with concrete tiles, became standard and modern timber framed construction became relatively popular after a difficult introductory period; even where cavity construction continued to be used, timber or steel framed internal partitions were commonly installed. Central heating became the norm, and during the 1990s, cavity wall insulation and double glazing became standard in new housing developments. Dry wall finishes were also prevalent for new development. During the past 30 years or so, increasing use has been made of new materials and techniques. Examples include composite timber products for structural purposes and finishes and plasticised products, ranging from components such as windows to paint systems. There has also been recognition that many older and sometimes discarded, or unfashionable, products and materials are still relevant, e.g. clay roof tiles, roofing slates, lead work and lime mortar.

An introduction to planning permission

If you are ever considering being a buy-to-let landlord it is likely you will envision at some point making changes to your property in order to enhance its value. Depending on whether you wish to alter, you may need to obtain planning permission. In fact, it would not be unreasonable to go as far as to say that knowing about planning permission is an essential part of any buy-to-let landlord.

In 1948 the right to carry out property development was nationalized. In other words, landowners’ right to build and alter buildings, or to use land or buildings for a different purpose, was taken away by the government. Since that date, anyone wishing to carry out development needs permission to do so.

Permission is given mainly by the local planning authority for the area, which in most cases is the district, borough or city council (collectively referred to as ‘district’ councils). In addition, local government was charged with preparing plans for their areas showing where various kinds of buildings could and could not be built. Thus, the modern comprehensive planning system was born. The system is now overseen by Department of Communities and Local Government in England; the Scottish Government; the Welsh Assembly Government and the Department of the Environment in Northern Ireland.

The planning system was introduced so that property development could be controlled in the public interest. Previously, buildings could be built anywhere, or they could be demolished, and land and buildings could be used for any purpose the owner chose. This was thought to be inefficient and sometimes had harmful consequences. The idea behind the planning system is that new buildings and uses are controlled to ensure:

that incompatible uses are not sited together;
the preservation of important buildings and areas;
the conservation of the countryside and natural environment;
the prevention of urban sprawl;
that the appearance and layout of new development is compatible with existing development;
that resources are not wasted;
that infrastructure can be provided efficiently;
that people’s enjoyment of their properties is protected;
highway safety;
co-ordinated provision of new housing and employment facilities.

However, the planning system is not coercive. It relies on landowners wanting to undertake development. An owner does not have to use land in a particular way just because it is allocated for that use or development. Similarly, even when permission is given, the owner is not compelled to act on it. The system is only concerned with what can be built. It does not deal with how it is built. Structural stability, health and safety, sanitation and so on are dealt with under separate legislation and regulations.

Fundamental to the planning system is planning policy. As well as allocating sites and areas for certain types of development, council development plans contain guidance and standards for buildings and uses, relating to matters such as design, layout, density, garden space, privacy, noise, highway safety, size and mix of buildings, parking and many other issues. This guidance, and standards, is known as planning policy and can be set out in a range of development plan documents. There is a preparation process that development plans must go through and public consultation and opportunities for public comment are built into the procedures.

In addition to local policies, the governments of the UK publish national planning policy documents. Inevitably, these are more broad-brush in nature. Their function is not only to guide decisions on individual development proposals but also to give direction to the development plans drawn up by local authorities. The government indicates what should be taken into account when preparing local plans and, in some areas, the thrust of what they should say. When seeking permission for development, planning law requires the body responsible for making the decision to do so in accordance with formally drawn up local planning policy, unless there are sound reasons for coming to a different conclusion. Therefore, planning policies are the prime consideration in whether planning permission will be given.

Permission is needed for development; consequently there is an application process for seeking that permission. Two types of planning application can be made. First, there are ‘full’ or ‘detailed’ applications. These show all aspects of the proposal and are specific about precisely what would be built, what alterations would be made or what use would be made of land or buildings. Second, there are outline applications. These are made to establish, in principle, whether a building can be built, leaving some or all details of the scheme to be determined subsequently. Outline applications can only be made for buildings not for changes of use, including conversions. The details of the building and site layout are called ‘reserved matters’, because they are reserved from the outline application. Another type of application is then made for the approval of reserved matters within the scope of the original outline permission. Once they have been approved, the outline and reserved matters together are the equivalent of a full planning permission.

Although planning permission is supposed to be obtained for development before it takes place, inevitably building work and changes of use happen without the necessary consent. In these circumstances, an application can be made for permission after the event. This is generally referred to as ‘retrospective’ planning permission.

There are various other applications which can be made after planning permission has been granted. Conditions are attached to permissions and there is a procedure for applying to remove or vary conditions. In certain circumstances, this type of application can be used to make changes to the design or layout of an approved scheme. There is a separate procedure for making very minor changes to a planning permission, called a non-material amendment. One condition attached to a planning permission is a time limit within which to begin the development permitted; this is usually three years for full planning permission (five years in Northern Ireland and Wales). Applications to extend the duration of planning permission are often referred to as ‘renewals’ although they are, technically, new applications.

Of course, not all planning applications are successful and the system includes an appeals process. Appeals are made to central government bodies: the Planning Inspectorate in England and Wales, and the Planning Appeals Commission in Northern Ireland.

The appeals system in Scotland is a little different. Appeals against decisions taken by council officers are decided by a group of elected councillors. Appeals against decisions taken by the council’s planning committee are made to the Scottish Government’s Directorate for Planning and Environmental Appeals.

Appeals can be made when a council refuses permission, fails to make a decision within set time periods, or grants planning permission subject to conditions which the applicant wishes to vary or remove.

Appeals provide the opportunity for the merits of a proposed development to be considered by an independent inspector (reporter in Scotland, commissioner in Northern Ireland), free of local politics. Appeal decisions, and the interpretations they contain, are supposed to be taken into account by councils when deciding planning applications. Thus the appeals system is intended to keep a check on councils and to provide some consistency in decisions between councils.

Adding property value from studies and cellars

One of the biggest changes that has occurred within the family home over the past 10 to 15 years is the growing popularity of the home office. An increasing number of people now choose to work at home, either to create a better work-life balance, to avoid the misery of commuting, or simply to undertake the work they love in the comfort of their own homes.

Britain has become an entrepreneurial state, with many ambitious individuals and small groups keen to set up companies on the lowest possible budget. It’s undoubtedly true that setting up at home cuts overheads significantly, and allows you to work long, productive hours without completely giving up family or home life. Just over 10 years ago, I remember leaving a large practice to start my own business from my spare bedroom. It was an enormous downscale –believe me! However, even though I now have a much larger, fully staffed office, I still like to spend time at home in my own study, in quiet contemplation. It can be an amazing place, allowing me to avoid the distractions of the outside world and focus on delivering work that needs high levels of concentration.

Whether you choose to use a corner of your living space, or create a study or home office in a designated room, it’s undoubtedly important to keep it tidy and make it ruthlessly efficient. But that doesn’t mean it can’t be beautiful. Seamless, integrated storage will keep chaos at bay, and you can focus on creating a comfortable, motivating place to work.

A study is a good place to have if you have to work from home. Another place that can add value is a cellar.
If you are lucky enough to have a small cellar underneath your house –perhaps used for nothing more than some storage or a place to keep some wine cool –you may be able to change this into much-needed, usable space.

One of the problems with existing cellars is that they have no natural light –and no natural ventilation. It is also common for cellars to have very restricted headroom.

If you are working to a tight budget then your best option is to waterproof the existing space as it is, paint and decorate it, install some decent artificial light and some mechanically extracted ventilation, and then use the space as a decent family utility room.

The great thing about putting washing machines and dryers in this sort of underground space is that the surrounding walls give a large amount of acoustic protection. It’s great to move all of these noisy appliances from the ground floor down to the cellar. If your budget can stretch a bit further, why not consider digging out the cellar’s ground slab, and building in a new, insulated concrete floor at a lower level, to give you some increased headroom. If you have a few more spare pennies stashed away, you can always look at enlarging the cellar and extending it underground –either towards the front or back of the property. This may provide you with the opportunity to install some glazing at ground level –to allow natural light into the basement spaces and encourage some good, old-fashioned natural ventilation. This makes your basement utility room a much nicer space in which to spend time –rather than being shut away in a dark and dingy dungeon.

The truth is that any additional space for utility-room storage, which can be easily accessed by a cellar staircase, is always going to be a great asset and a selling point for any good family home. Even with the tightest budget, any conversion of an existing cellar is going to be a good use of space.

The construction processes vary depending on the type of property that you live in, but the general principles of creating a new basement under an existing building go something like this:

1 The basement company constructs a hoarding at the front of your house, which allows them to start digging through your front garden.

2 Once they have dug down to the basement level, they then start to make their way underneath your house, by forming a one-meter-wide tunnel right down the middle of your home. They go down the middle because all of your structural foundations run along the edge of the house. For the time being, they have to stay away from them.

3 They then have a skip located on the road outside your house and a conveyor belt that goes from the underground space up through your front garden –over the top of the street footpath and into the skip on the road. As the guys dig out the mud, they throw it on to the conveyor belt and it goes from the subterranean space and into the skip. The skip is unloaded regularly by a lorry with a grabber.

4 They then tunnel off to the corners of the house and begin to underpin the house with huge, deep, new concrete foundations. They gradually and very slowly do this in sections to provide the much-needed structural support to your foundations before they can remove the surrounding soil.

5 They underpin, remove a bit of soil, then put up some Acrow props to provide some temporary support for your flooring above.

6 Once all of the perimeter walls and foundations are completely underpinned, the remainder of all the soil under your house is removed.

7 Steel beams and steel columns then span beneath your existing ground floor to keep it in place.

8 Light wells are formed at the front and the back of the property, to allow in as much natural light and ventilation as possible. These can either be sunken external courtyards or glass skylights inserted at ground level.

9 Next, the waterproof tanking system is put up against all of the concrete walls.

10 Insulated concrete slabs, under-floor heating pipes and screeds are installed.

11 All the drainage and plumbing is installed.

12 The walls are timber-batoned, dry-lined and plaster-boarded before being given their final finish.

Living room and kitchen design for aspiring landlords

Living rooms have changed so much over the last few generations. In the good old days, your living room might have been known as a sitting room, a drawing room, a front room or a parlour. The living room was often the space in which you could grandly declare your style, status and taste, because it was here that visitors would be invited when they came to your home. In many families, the living room was a child-free zone, kept for ‘best’ to impress! Times have undoubtedly changed, and not that many houses have space for such luxury – spreading out to fill every room in the house instead! In fact, the separate ‘formal’ drawing room often feels like a fairly boring and redundant space – rarely used and usually not very comfortable.

Here in the 21st century, we are much more adventurous with our use of space, and it’s increasingly common to combine the kitchen-dining area, making the kitchen very much the central hub of the home. Many kitchen-diners have their own TV screens, and most homes have a number of TVs scattered throughout. For this reason, the ‘new’ living room isn’t necessarily a place for sitting down to watch TV. In fact, in my home we watch more TV in the kitchen than in any other room. So maybe it’s time that we rethink the way we use our living spaces. Sure, get a TV in there for times when you really want to flop and chill out; however, it makes sense to think about giving your living room a new role.

Today’s living rooms can provide space for reading, listening to music, having a relaxed chat and gathering around the fire. Where kitchens can often feel like ‘harder’spaces, with functional flooring and finishes, the living room wants to be a place where you can curl up and get cosy. It’s important that any living room feels relaxing and comfortable. It’s undoubtedly a space where you can hang out with your kids, but there is also an opportunity here to make this a space that is a little more grown-up. The TV will always be the inevitable focus of any living space (or, indeed, any room in which it is situated), but by planning a room properly there are ways to give equal priority to a beautiful, real fire. Real fires have such a powerful psychological appeal, and represent one of the very best ways to truly relax.

We live in an age in which we all love a greater sense of space in our homes. Most of us don’t want to live in tiny, box-like rooms, all with a similar scale, size and proportion. Instead, we like variety in our homes, diverse spaces with plenty of light and a great flow of air. We like rooms to be sized to match our requirements; in other words, we need them to be big enough to host our lifestyles, and smaller when we want to be cosy. The lighting and finishes are then chosen to create an atmosphere appropriate to those rooms.

If one thing’s for sure, kitchens are the absolute heart of the home. They aren’t just places for cooking, but a hub for socialising with family, friends and relatives. The 21st-century family kitchen is a virtual hive of activity and, for me, it is without a doubt the most important room in the house. Dining rooms are, however, something completely different. There really has been a change in our view of these spaces, particularly in smaller homes. Sure, if you have a grand house with loads of space, then a formal dining room is a fantastic space for those special occasions – huge dinner parties, or family gatherings. However, if you need more space in your house, and need it in rooms that might sit alongside your dining room, then this is the first room that needs to go.

Another reason why we are seeing the death of the formal dining room boils down to the fact that younger families simply don’t use formal dining spaces in the same way that previous generations did. The modern family is much more relaxed and far less stuffy. Times are changing and we don’t seem to mind the idea of entertaining in what is effectively kitchen space.

Your kitchen has to be ruthlessly functional, highly durable, and intelligently planned to suit the exact needs of your family. If it’s not, then you have not only wasted a large proportion of your refurbishment budget (even the most affordable kitchens still cost money), but it will drive you mad every time you use it. Cooking for you and your family should be a pleasurable and rewarding experience, and not a source of frustration.

In the early 1950s, researchers in the US developed the idea of the ‘work triangle’. This is an ergonomic concept derived from research to improve industrial efficiency, which was then applied to the domestic kitchen. Whether you are planning your own kitchen, or enlisting the help of a professional, you can use the ‘work triangle’ method to check the efficiency of your design. The three points of the triangle correspond to the three main kitchen activity zones. There is the wet zone (the sink), the cold zone (the fridge) and the hot zone (the cooker). Their position and relationship to each other is critical to achieving an efficient and comfortable kitchen design.

The recommended overall distance (the total length of the three sides) is 6 metres (20 feet), with no two points being less than 90 centimetres (35 inches) apart. Sound complicated? It’s not really. Read on! If the total is less than 4 metres (12 feet), then your appliances will be too close for comfort. If it’s greater than 8.5 metres (26 feet), then your appliances will be too far apart and you’ll waste time and effort trekking between them. A good way to burn off the calories that you are about to put on, but not an efficient kitchen design! Try to assess the traffic flow across the triangle, too. If you have a large kitchen, people walking through the space may not be a problem, but in small rooms it can reduce efficiency even further.

Design choices affect your rental yield

Some, if not most, people look to property as a way of making money. The attraction with being a landlord is that it offers you lifestyle options, a stream of income that once set up, provides you with income so you can get out and make the most of life. Is it unfair to say there is a secret landlord inside most of us? If you are able to let out a property, making the right design choices may allow you to reap the most income possible, because it gives a good feel to a tenant who would then be willing to pay a high rent.

Every single decision you make – from the smallest design detail to the selection of finishes and furniture, and the overall arrangement or layout of a room – has an impact on the way that your entire home feels. Together, these decisions can have a profound effect on the way you live your life, and the dynamic you create within it.

Building a conservatory or an extension on your home can add massive value. Not only can it transform the quality of the architecture in your ground-floor spaces, but the additional space will also increase the overall floor area of your house, which will automatically increase its value when the estate agent whips round with his tape measure. Best of all, if your new spaces are well designed, you’ll certainly add that ‘wow’ factor. In fact, extensions are a magical way to flood your house with light, create space where you didn’t even know you had it, and open up the rooms in your home to make them work the way you want them to.

The first question that you have to ask yourself is what kind of extension you want and why? Before even considering your options, you need to analyse your existing house plans very carefully to fully understand the impact your extension will have on the design of your existing house. You also have to be sure that whatever you build completely fits your needs. The most common form of extension on a property is a ground-floor rear extension; the most popular form of extension is a rear, ground-floor addition. Both of these can have a substantial and dramatic effect on the way that the ground-floor spaces work.

In many cases, these types of extensions are used to expand the kitchen-dining area, which has pretty much become the heart of the typical British family home. Creating additional space where the average family needs, wants and uses it most means that you’ll not just be making your home more productive in terms of space, but you’ll be in a fantastic position if and when you do come to sell.

Standard conservatories bought directly from a manufacturer can be even more affordable, but it’s worth being wary of this approach. If selected in the wrong style, a standard, off-the-shelf design can conflict with the architecture of the existing house. This doesn’t have anything to do with whether the extension is modern or traditional – far from it. Most people don’t have a preference for either style, as long as the design of the extension is good – and appropriate for your house. Often, however, I find that the standardised conservatories in mock Georgian, Tudor or Victorian styles don’t really work well when added to the back of a house from a different period. A well-designed and well-built extension will always be a good preference over a low-budget PVC conservatory that won’t necessarily enhance the standard of your home. The truth is that agents sometimes wonder why people do go for fully glazed conservatories with glass roofs, which they then cover completely with blinds because they are worried about their privacy! This high level of glazing is not necessarily very comfortable, either! In the winter months you can end up with a freezing-cold extension and, in the summer, the equivalent of an indoor greenhouse. A more considered design, which overcomes the issues of privacy, heat loss and solar gain , is by far the best way forward. Planned correctly, you’ll still be able to achieve fantastic views and access to your back garden.

We live in an age in which we all love a greater sense of space in our homes. Most of us don’t want to live in tiny, box-like rooms, all with a similar scale, size and proportion. Instead, we like variety in our homes, diverse spaces with plenty of light and a great flow of air. We like rooms to be sized to match our requirements; in other words, we need them to be big enough to host our lifestyles, and smaller when we want to be cosy. The lighting and finishes are then chosen to create an atmosphere appropriate to those rooms.

When it comes to bedrooms, they must be beautifully calm and comfortable spaces, for adults and children alike. The ideal bedroom should be cosy and serene, allowing your mind to be cleared of the pressures of the day when you retire to bed. When you consider the fact that we do, on average, spend nearly a third of our lives sleeping, the quality of our beds and the rooms they sit in become that much more important. The space should be beautiful; the bed should be a haven.

It makes no difference if you are a traditionalist, enjoying an over-the-top bedroom and indulging in Louise XIV-style splendour, or an avid minimalist, with a room stripped bare of any ornament, decoration or distraction. In both cases, comfort and cosiness should be the order of the day, and a fundamental part of your design brief. This means that the selection of your finishes and furnishings is actually the most important choice you will have to make in your bedroom. However, to create a fully successful bedroom, all of the principles of good design need to work together.

Bedrooms need to serve a dual purpose – lulling you to sleep and allowing you to languish in bed for those all-too-infrequent lie-ins, but also stimulating you adequately to give you the get-up-and-go you need to get out of bed in the morning. It’s also an extremely personal room, where we undress, dream, mull over the day that has passed and plan the day ahead, and also spend intimate time with our loved ones. We take to our beds when we are ill, and retreat to our bedrooms when we want a thorough rest. It’s not surprising, therefore, that creating the perfect bedroom is a challenge on a major scale.

Think carefully about your needs before working on the design brief for your new bedroom. A bedroom should be a sanctuary, but a functional one at that. Take your time to work out exactly what will work to create the optimum environment.

Factors influencing property development

Deciding to become a property developer as a vocation is an important decision that requires various considerations before you take the plunge.

Developing a property in poor condition as basis for a successful business venture which gives a sound return on investment requires a lot of energy, time, money and luck. How much energy, time and money are required multiplies with an increase in the scope and level of activities. If you move from developing a large, Victorian property to two properties, or more, the demands rise commensurately.

Using project management ideas to succeed – the feat of managing a project based development process, whether of a single Victorian house, a single larger scheme, an old warehouse conversion to provide dwelling units for 20 people, as in for example, a block of flats being adapted for Home in Multiple Occupation (HMO, each require the application of the same basic principles. Even when the challenge is that of working on two sites simultaneously, sites, which are next door to each other, you still need lots of energy. The point of note here is that, each of these scenarios will pose their own challenge.

For some, these challenges can sometimes prove so daunting, that developers with years of experience get into trouble, which is when, some take appropriate, corrective measures and the result can be survival from where they rebuild and live to tell the tale. Others may not be so lucky and go under. You have to keep your eye on the ball in relation to the factors which will help you to not only avoid going down but to move from one successful development project to another. This said I am reminded of the old Chinese saying which goes something like; the glory is not in not falling but in rising even higher after any fall.

When it comes to property investment, as with other times, location and unrealised, hidden values hold the key to success in this business. Furthermore, in a UK context, London and the south of England, are the ultimate magnet for property developers. This is an area consistently identified as offering ideal investment returns on account of; development opportunities, the high rents achievable and the considerable capital appreciation over time are all contributory factors. Demand and supply factors, which favour the developer’s side of the equation, have contributed in no small way to property price appreciation over the last three decades and more, with supply unable to match or catch up with demand in over three decades, especially since the 1990s.

Spreading London ripple effect – what is often referred to as the ‘London ripple effect’ in relation to high prices always sees the higher London price rises, spread to the surrounding regions and beyond. Such ripple effect is dependent on the prevailing economic climate of the time. Examples abound of out-of-London property hotspots like Birmingham, Manchester, Liverpool and Leeds to list a few.

Scotland and Wales Farmers’ diversification into the market for holiday accommodation – for a couple of decades now, it has been noticed that in locations far removed from the hustle and bustle of city life, for example in Scotland and Wales, areas which have not witnessed property price increases, like those found in the south of England, farmers have included diversification from core farming activities into providing accommodation for tourists. For the farmers who have taken advantage of the opportunities opened by tourism, refurbishing old barns and disused farm cottages has become an established strategic route to generating additional revenues. This has to be seen in the context of dwindling grants and subsidies, formerly built into the income streams of members of the farming communities. It is as much driven by political pressures and dwindling government support as by the survival exigencies of the day. You can be sure that where there is a development tag attached, you will soon find a property developer knocking on the door. Could that developer be you in the near future?

Scotland and the City of Aberdeen and surrounding districts – still on Scotland, there had, until recently, over several decades, been intense development activities in and around the city of Aberdeen. This relates to Aberdeen being at the centre of Scotland’s oil industry, with people coming to work in the industry or to study about different aspects of the oil industry at Aberdeen University and the surrounding colleges.

Supply demand factors as drivers – in Aberdeen once more demand – supply factors act as drivers and according to 1st quarter figures from the Halifax Price index, annual price rises in Scotland stand at 9.3%, in August 2016, while that for the UK as a whole is 10.1%. A check on house prices in Aberdeen and its surrounding districts, relating to different types of housing; flats, period properties and new builds, prices are comparable to those in some areas around Greater London. A fact, which may come as a surprise to many of us, cocooned as we are in our city life bubble. The government estimates a shortfall of 3 million homes exists at the present time.

Scotland and the cities of Glasgow and Edinburgh – the cities of Glasgow and Edinburgh, between them have a combined population of just over a million, and 8 universities, four in each city and several colleges in their patch. There has always been a steady hive of development activity by which students’ accommodation needs have been catered for. Over several decades developers and buy to let investors busy themselves working the students’ districts assiduously.

Ever present opportunities – there are constantly emerging development opportunities, which can be capitalised on, if you’re at the right place at the right time, and for those who know their patch, and are also known, they are first to be notified, when opportunities suddenly crop up. And the elephant in the room requires that you be financially ready to take advantage of such opportunities when they arise. These are hallmarks of discerning developers.

The feel good factor as relates to the property market, may come and go and irrespective of the state of the market, opportunities are always there, explained another. When asked about the negative equity phenomenon, one property developer’s response was that the phenomenon which descended on the property market in the late 80’s and early 90’s is a distant memory, and long forgotten. Negative equity was the term coined for properties losing their value – even overnight properties became worth far less than had been paid for them just a few weeks before.

Negative equity may well be a distant memory. However, it serves to remind us that while the last forty years have seen steady property price increases averaging over 9% annually it is worth stressing once more that property prices can go up but they can also come down. A cautionary tale: as distant memory it may be, but it serves to remind us that whilst the last forty years has seen steady property price increases, averaging over 9% annually, it’s worth stressing that property prices can go up as well as come down.

Healthy employment figures – among the many factors impacting on the property market, are recent UK employment figures, (August 2016) which show a high proportion of people in work compared to the years 2007-2010. The importance of healthy employment figures to the property development process lie in its relationship with other factors which impact on the market for materials, labour and income.

Traditionally, factors such as interest rates reflect the state of the market in relation to supply and demand and its impact on the property market. Interest rates is a subject to which we will return later. The simplest relationship which can be adduced is that higher labour costs can lead to higher incomes for the working population. Improved incomes in turn mean those who wish to purchase properties; flats or houses are better able to afford them.

A dynamic market is good for development – a corollary of the above, is this; the greater affordability made possible for those purchasing in any segment of the market; low, high or in the middle, the more dynamic the market is, the better it is for the developer. It means the greater the numbers of people in the market well placed to afford to purchase properties, the likelier the chances the developer has for a quick sale and turnaround, followed by a move to the next project.

A developer who takes too much of a narrow perspective, may end up paying the price, as a result of the adverse consequences which may result from ignoring details from other perspectives, even when such details are minute. For example, using wrong structural engineering calculations or failure to take account of small recommended measurements because the builder thinks you could get away with not doing so. When the correct details are ignored and corners cut, they can result in unstable structures, which end up imperilling thousands of pounds of development investment.

Property development is much like any other economic activity; retailing, banking, running or hotel or any of the businesses we see on the high street. Each one of these businesses requires coordination of human, raw materials and financial resources with the latter acting as the glue that holds the business together.

Deciding to become a property developer is an important decision. There are many considerations to be undertaken beforehand, and during the process. But done correctly, it may be rewarding, both financially and vocationally.

Reasons for investing in properties

A lot of mediation cases result from disputes between landlords who want to maximise their bottom dollar and spend as little as possible, and tenants who feel they are being pushed to do the landlord’s job of upkeeping properties because the landlords are not responsive enough. What makes someone want to invest in property in the first place if they are not prepared to invest time and money into maintaining it?

Cash Flow: Whether you buy with all cash or use today’s favorable financing with a low mortgage payment, positive monthly cash flow occurs when the monthly rent is greater than the monthly expense. This gives you a monthly income from your property investment.

Appreciation: Appreciation is the increase in the property’s value, which generally occurs over time and can also be increased by an investor who adds value to the property through repairs and/or enhancements. This is a great way to create equity in the property.

Depreciation: Even with an increase in the property’s value, the government allows owners a tax deduction on their property over its life span. This annual deduction is called depreciation which you can start taking when you have owned the property for at least one year. By taking advantage of depreciation, the cash flow you receive is protected so that you receive some or all of it tax free. If you are an investor with an income from another source such as a regular job, it can also protect all or some of that income from state and/or federal income taxes. Talk to an accountant to completely understand the full benefits of depreciation.

Tax Benefits: In addition to depreciation, an investor can usually claim the interest portion of his monthly mortgage payment as a tax deduction.

Leverage: Leverage is a very powerful reason for investing in property. If an investor uses 100% cash to acquire a house worth $100,000, and the house increases in value by $5,000 in one year, then the investor makes a return of 5% (assuming no other costs in this case). However, if the investor obtains 80% financing, only $20,000 cash would be required at the closing table, and a bank or other lender would loan the remaining $80,000 to acquire the property. Assuming the same $5,000 increase in value, the investor’s cash contribution of $20,000 would yield a 25% return on investment ($5,000 increase in value divided by the $20,000 investment) in the same one year period of time.

Using the above example, if the investor is able to net even a conservative cash flow of $200 per month, this will result in an additional $2,400 per year added to the increased appreciation. The return for the year would now be $7,400 ($5,000 appreciation plus $2,400 cash flow) and the return on investment would now be 37% ($7,400 divided by $20,000). Even if the property value remained stable with no appreciation, there would still be a positive return of the $2,400 in cash flow with a return on investment of 12%.

Considering these benefits in addition to the low interest rates for financing, you can see how easy it is to accumulate wealth and become a successful investor.

Other Reasons Why People Invest in property
Now let’s look at other reasons why people invest in property. First, let me ask you a very simple, yet provocative question: Why would you invest in property? Understanding the answer or answers to this question will help you along your investment career. Following are the most common answers I have heard during the course of my property career:

Freedom: Frankly, this is why most people start investing in property. They get star struck with the idea of riches that would give them the freedom to stop working for someone else. They may have a great job that they absolutely love that pays the bills, but they still want to achieve long-term freedom. They can see that by buying and holding cash flow properties over time (and sacrificing and delaying gratification), in five, ten or twenty years, they can have a pile of monthly cash flow and have gained the freedom they desire.

Control: Some investors I speak with want property in order to gain some degree of control over their financial lives because, let’s face it; we have zero control in financial investments outside of property investing. If you invest in the stock market or money market funds, you have no control over the return you will make. With property, there are things that you can do to control your return on investment as shown above.

Alternatives: Some investors will admit that property is nothing more than a portion of their overall investment portfolio. Perhaps they have divided their portfolio to include mutual funds, stocks, property, etc. Or they may be looking to achieve higher returns from their cash through active management.

Job Escape: A few investors look at property investing as a career, or a chance to own their own company. Others may look at property as a means to eventually replace the job or career they currently hate. Creating Value or Thrill of the Hunt: Many investors love the thrill of the hunt, chasing down a deal or cashing in on their last remodel. They pursue that addictive feeling and are always looking for the next rush or opportunity to turn an ugly duckling into a beautiful swan.

Options: After many years of property investing, I have come to realize that in the end people love investing in property because it has given them so many more options. They have the options to keep working their current job, to buy property as a full time career, to have the time and money to travel, etc. The more they invest, the more option doors are opened.

The Real Reason to Invest in property
People fall hard for the sexy pitch of earning freedom. Frankly, freedom is good but I think what people really want is options. That is why they keep working so hard to find the next deal, to find the next investor, and to keep building their growing portfolio. Some might think freedom and options are the same things. But freedom is more sustained while options are more temporary. But to me, freedom means that a person can stop doing something while options mean a person can do other things. I can tell you firsthand that having options is better than having freedom. I would say you get freedom first and then you build or acquire options.