Month: September 2015

30th September 2015

2 bedroom flat in Broadfield, Crawley

Here’s an interesting flat that has just come on to the market, at least that’s what I thought when I checked for new properties listed on Rightmove. Apparently, however, it was first listed on 7th August, but I can’t find whether the asking price has changed or not. Well, not to worry too much. The property, in Broadfield, Crawley, is on for £179950 with King & Chasemore – here’s the Rightmove link if you want to look at further details – http://www.rightmove.co.uk/property-for-sale/property-53926175.html.

Hayling Court

One reason for my interest is that a property like this, although not in the most fashionable part of town, can let for around £875pcm. Based on this rent and an asking price of £179950, you would get a maximum gross annual yield of around 5.8%.

However, just before you get your cheque book out and sign on the dotted line, have a closer look at the area. In July of this year a similar property completed for £166000 i.e. £14k less than is being asked here. In addition, there are two other similar properties currently on the market for £170000. Although there are no internal photos to compare condition, a purchase price of £170000 with a rent of £875 pcm would give a max. gross yield just shy of 6.2% ! Even better !

If you’re looking to increase your lettings portfolio or are new to “Buy-to-Let”, don’t hesitate to give us a call for a chat about property investments in Crawley & surrounding areas. Our advice is free and we might be able to provide you with some insight that you hadn’t considered ! You can also e-mail us on crawley@northwooduk.com.

28th September 2015

Broadfield Outperforms Pound Hill !

One of our landlords popped into the office last week looking at another Buy-to-Let property deal. He was interested in a 3 bedroom house he had seen advertised in Broadfield with another agent. His other investment properties are in Pound Hill and he wanted our opinion as to the pros & cons of buying in Broadfield.

As a letting agent we have property all over Crawley (and many further afield), including a number in both Pound Hill & Broadfield. To compare the two areas for the landlord we firstly looked at the gross rental yields he could expect in an area near to the Broadfield property being considered.  We then compared this to a similar sized area in Pound Hill, where he has his other investment properties. For the purpose of the comparison we just looked at 3 bedroom houses.

You might be surprised to learn, but our analysis showed that the area we considered in Broadfield out performed the area in Pound Hill, regarding gross rental yield ! The difference was just over 2.5%, which is not inconsiderable. The average Broadfield rental yield turned out to be just shy of 7% with average rental prices of £1140 pcm. In contrast, the Pound Hill rental yield was about 4.5%, with average rental prices of about £1290 pcm. So, Broadfield outperforms Pound Hill !

Of course, when buying a rental property, gross rental yield is not the only aspect to consider. Another key criteria to property investment is to look at capital growth. When investing in rental property, some people are mainly looking for yield. They might, for example, be relying on the income from their property investment to supplement their pension. On the other hand, others may be more interested in maximising long-term capital growth, with the intention of unlocking it at some point in the future, by selling.

To complete the picture, we also looked at the capital growth achieved by properties in the Broadfield area and found that over the last 16 or so years, the average 3 bedroom house had increased in value by around 210%, giving an absolute increase in capital of about £130000. However, when we did the same analysis on the Pound Hill area, the comparable capital growth was even more impressive at around 230% i.e. 20% more than in Broadfield ! In absolute money terms, a property purchased in this area about 16 years ago would have increased in capital value by just shy of £250000 !

So there you go. Although Broadfield outperforms Pound Hill as far as gross rental yield is concerned, Pound Hill gives a significantly higher level of capital growth. When thinking about property investments you need to consider whether yield, capital growth or perhaps a combination of the two, suits your circumstances.

Whether you’re an experienced landlord looking to invest in more properties or just tentatively considering taking a first step into Buy-to-Let, why not give us call on 01293 515588 to discuss the various options available to you. Alternatively, just send us an e-mail to crawley@northwooduk.com.

25th September 2015

3 bedroom house, Southgate, Crawley

Here’s another “doer upper” for you to consider. A 3 bedroom terraced house, in Southgate, Crawley.  On at £250000 with local Crawley agent, Taylor Robinson, the Rigtmove link for further details is http://www.rightmove.co.uk/property-for-sale/property-51725176.html.

We’ve recently let a 3 bedroom house in the same area for £1150pcm. Based on this and the purchase price quoted above, you’d get a maximum gross annual yield of  5.5%.

SG25-9-15

However, realistically speaking if you buy this property you’ll have to spend money getting it into a lettable condition. From the picture above the curb appeal could certainly do with improving! Remember one of our lettings Mantras: Good / excellent condition gives higher rents and lower void periods.

In our opinion, the property would need a complete makeover with new bathroom and kitchen. Walls, ceilings, woodwork etc…should be repainted and then new flooring & kitchen appliances installed. If you spent £10k to £15k on the works required and then let the property for £1150pcm, your maximum gross annual yield would still be above 5%, ranging from 5.2% to 5.3%. Not too bad at all.

If you can negotiate the purchase price down, then so much the better. Don’t be frightened to ask for a price reduction and be prepared to walk away if your figures don’t add up. Another word of warning – keep a tight rein on the renovations costs !

If you’re looking for property investments in Crawley or would like a second opinion on a “doer upper” project, we’d be more than happy to have a chat. Give us a call on 01293 51558 or send an e-mail to crawley@northooduk.com.

24th September 2014

3 bedroom house, Gossops Green, Crawley

If you’re looking for a project with great rental potential, here’s a 3 bedroom house, just on today at £250000 with Blakemore & Sons. You’ll notice from the internal photos that the property could do with a makeover. Here’s the Rightmove link for a closer look http://www.rightmove.co.uk/property-for-sale/property-51687262.html.

By renovating / re-decorating a property like this you’ll have a much better chance of reducing void periods and also attracting the best quality tenants. Not rocket science if you think about it.

GG 24-9-15

Assuming that the renovation did not set you back any more than say £5000, you would expect to achieve rent of between £1100 & £1200 pcm. Based on a purchase price of £250000 plus £5000 to renovate, you should expect to get a maximum gross annual yield of between 5.2% and 5.6%. Not bad at all. Of course if you can negotiate the price down a bit, so much the better !

If you’re a property investor looking for your next buy-to-let deal, or perhaps new to this business and making your first tentative enquiries about investing in property, why not give us a call to discuss the different options in the Crawley area. You can also e-mail us on crawley@northwooduk.com.

23rd September 2015

1 & 2 bedroom flats, Southgate Crawley

You don’t see this very often. Two flats in the same development at Godolphin Court, Southgate, Crawley, both being marketed at the same price of £180 000.

One of the flats is on with Connells (http://www.rightmove.co.uk/property-for-sale/property-36567399.html?premiumA=true) and the other with Homes Partnership (http://www.rightmove.co.uk/property-for-sale/property-54868772.html).

The difference between the two properties is that one of them is a 2 bedroom flat “in need of updating”, while the other is 1 bedroom flat in what looks like pristine condition from the marketing photos.

Godolphin 23-9-15So, which one do you buy ? To answer this question, we have to consider a number of factors.

A one bed flat in tip-top condition at Godolphin Court should achieve £775 to £800 pcm. Based on a purchase price of £180000, this gives a maximum gross annual yield of between 5.2% and 5.3%.

What about the 2 bedroom flat ? Well, firstly we would not recommend letting it out in its current condition ! Let’s say for argument’s sake, however, we spend £10k on renovations & re-decorating, to bring it up to the same standard as the one bedroom flat. Now, 2 bedroom flats at Godolphin Court in excellent condition should let for between £900 & £975 pcm.  Based on these rental figures and a purchase price of £180000 plus £10k renovation costs, we would expect to achieve a maximum gross annual yield of around 5.7% to 6.2%. If you can get some money off the purchase price, however, your yield will increase still further.

So, by adding value to the 2 bedroom flat and bringing it “up to spec”, you can see that a higher potential yield can be achieved in comparison with the “ready-made package” of the one bedroom property. Of course, this is not always the case. You must be very careful when buying a property that “needs updating” that (a) you do not buy it at too high a price and (b) you do not overspend on renovation works. If you’ve ever watched TV programmes like “Property Ladder” you’ll no doubt have witnessed how easy it is to get carried away and overspend on the initial purchase price as well as the subsequent property renovation.

If you’re looking to buy property to let or develop in Crawley, or would like an independent opinion of your current property project, why not give us a call on 01293 515588 or e-mail us on crawley@northwooduk.com.

22nd September 2015

Brand New: 2 bedroom apartment, Manor Royal, Crawley

Here’s an opportunity to buy a brand new 2 bed apartment in the heart of Manor Royal, Crawley. Marketed by Cubitt & West, the asking price for the 1st floor flat advertised here is £200 000. Here’s the Rigtmove link in case you want some more details : http://www.rightmove.co.uk/new-homes-for-sale/property-36525576.html.

Bowthorpe Pl 22-9-15

It’s a little more difficult to gauge the market rent for these properties as they are a fair distance from others in the area. However, we would expect a 2 bedroom example like this to achieve between £950 and £1000pcm in the current market. With an asking price of £200 000, this would give a maximum gross annual yield of between 5.7% & 6%. If you regularly read this blog, you’ll know that is a pretty good return, given the area and current state of the market.

One word of advice, however. If you’re serious about a property in this development, make sure you secure at least one allocated parking space (and preferably two). Allocated parking spaces can mean the difference between getting your flat rented quickly and having it hang around empty for a while.

If you’re a property investor looking for your next buy-to-let deal, or new to lettings and not sure what and where to buy, why not give us a call to discuss the different options Crawley has to offer. Alternatively, drop us an e-mail to crawley@northwooduk.com.

19th September 2015

Three Bedroom House, Ifield, Crawley

Some property investors are concerned about buying leasehold properties. They’re worried, for example, about the maintenance charges levied by the freeholder, what happens to the communal areas in the case of flats etc.. etc….

Investing in leasehold properties is fine in our opinion. However, freehold properties are equally as good. So, if you feel happier owning the freehold, why make life more difficult for yourself by buying leasehold ! ?

So, here’s a potential freehold investment property. It is a 3 bed terraced house in Ifield, Crawley, close to Ifield train station. In good condition, these types of properties will normally rent for upwards of £1200pcm. This property is marketed by King & Chasemore, Crawley, with a guide price of £270 000. For more details, here’s the Rigtmove link: http://www.rightmove.co.uk/property-for-sale/property-54774053.html

Treyford 19-9-15From the marketing photos the property looks in good condition (but do please check !) and has a garage en bloc. There are also local schools close by, which brings us nicely on to the subject of the type of potential tenants properties like this will tend to attract. Any guesses ?

If marketed in the right way a property like this 3 bedroom house will, of course, attract families. Proximity to schools is very often a major consideration for these types of tenants and this property has both primary & secondary schools close by.  If you’d like to know more about letting these types of properties – both pros & cons – we have a free guide to help you. Just send us an e-mail and we’ll forward it on.

Back to the figures…what about the yield ?

Well, based on the guide price and a rental figure of around £1200 pcm, you would expect a maximum gross annual yield of 5.3 %. With a bit of tough negotiation, however, you might be able to get a price reduction & improve the yield figures. As estate agents ourselves we can give a bit of “inside information” – strictly legal of course ! – about presenting any offer you care to make in the best possible light. Just let us know and we’ll forward the information to you.

If you’re looking for property investments in and around Crawley, or would like a an independent opinion on a property you have your eye on or are buying through another agent, why not give us a call. We’re on 01293 515588. You can also e-mail us on crawley@northwooduk.com.

16th September 2015

2 bed maisonette, Langley Green, Crawley

Take a look at this very well presented 2 bedroom, ground floor maisonette in Langley Green, Crawley. It’s marketed by Moore & Partners with a guide price of £220 000. For a closer look, here’s the Rightmove link http://www.rightmove.co.uk/property-for-sale/property-54712082.html

LG 16-9-15Now, for £220000 you could probably get a more modern 2 bedroom flat over in Pembroke Park, Crawley, close to Three Bridges train station with its fast rail links to London. Langley Green, however, is a little more out of the way in terms of main line rail access, but this property does some have some very good features.

One feature we like is the room sizes. As this type of property is from the Crawley New Town “commission” era, its room sizes are pretty large compared to its more modern counterparts. In addition, you have your own private garden and it is likely to have a much lower annual maintenance charge compared with new build flats. But do please check !

This type of property would appeal more to a couple or young family (because of the size & outside space), rather than “professional sharers”. We’ve just let a similar property for £975pcm and there are other examples around that rent out at a similar price.

Based on the guide price, a rent of £975pcm would translate into a gross annual yield of 5.3%. So not too bad at all. If you’re interested, one word of warning though, do check to see why the EPC rating is only a D. It might even give you some room for negotiation on the price !

If you’re interested in the Crawley buy to let market, whether as an experienced landlord or someone thinking of investing for the first time, why not call us on 01293 515588 for a chat to discuss some of your ideas, or e-mail us on crawley@northwooduk.com.

15th September 2015

2 bedroom flat, St Georges Court, West Green, Crawley

If you’re looking for annual gross rental yield above 5%, then take a look at this flat at St Georges Court. On the market at £195000 with ConnectUK, the flat, according to the description, has been refurbished throughout. The pictures look great and it has been newly double glazed. For more information on the property visit the Rightmove link here: http://www.rightmove.co.uk/property-for-sale/property-54672362.html

St Georges Ct

Flats at St Georges Court are older than those at Pembroke Park, for example, and tend to only have a family bathroom i.e. no  en-suite. As such, they are a bit cheaper to buy and do not command as much in rent.

However, the development is ideally located for Crawley town centre, Manor Royal, Gatwick etc…., so location is good for reducing potential void periods between tenants.

Properties like this are fetching £875 to £895pcm at present which gives a gross annual yield of between 5.4% & 5.5%.

If you’re looking for investment property and want some impartial free advice, why not e-mail us at: crawley@northwooduk.com or call us on 01293 515588. Alternatively, if you’re buying an investment property through another agent and want an independent opinion, we’re more than happy to help.

14th September 2015

2 bedroom flat, Three Bridges, Crawley

Here’s a nice looking apartment in the ever popular Pembroke Park development in Three Bridges, Crawley. Marketed by Inspire Estate Agents at £220 000, we would guess that it will probably not be around for very long before an offer is accepted. Here’s the Rightmove link if you’re interested in taking a look at some further details http://www.rightmove.co.uk/property-for-sale/property-36392469.html.

cutThe property has an en-suite to the master bedroom and a family bathroom with a shower over the bath. So from an investment point of view it scores well in terms of great location with access to Three Bridges Station and will appeal to couples & sharers alike – with two separate showers. Together with gas central heating, underground parking and a balcony we think it has plenty of investment potential.

So, down to the nuts & bolts……what about the yield ! ?

Properties like this are currently renting in Crawley for anything between £995 pcm & £1050 pcm. Based on the asking price this gives a gross annual yield of 5.4% to 5.7%. So not too bad at all.

If you’re interested in property investment in Crawley & the surrounding towns, or perhaps have your eye on a particular property, why not give us call or e-mail for some independent and free advice ? Call us on 01293 515588 or e-mail: crawley@northwooduk.com.