3 Bedroom House, Tilgate, Crawley
Here’s a 3 bedroom house on Ashdown Drive, Tilgate, Crawley that has just come on to market with a guide price range of £260000 to £290000. Moore & Partners are the estate agents and there’s an Open Day on 12th December. So give them call if you’re interested. For a closer look now, however, here’s the Rightmove link http://www.rightmove.co.uk/property-for-sale/property-56472209.html
The agents (Moore & Partners) indicate that the property could do with some updating. We’d agree with this, although from the pictures the house is presented in a neat and tidy condition. However, the green bathroom suite is a bit of a giveaway ! Of course, with your investors hat on, one key element you would need to have in the bathroom would be a shower over the bath. From the pictures and description, this appears to be missing. If you don’t change the bathroom suite (for a white one !), the minimum we would recommend is to make sure that there is a shower over the bath.
Please also check that the property has double glazing through out. It is mentioned in the description a couple of times, but in relation to specific windows & doors only. A quick call to the agent will remove any doubts.
If you were interested in the property with a view to updating it, one question to ask yourself is how much is reasonable to spend on the remedial works ? Of course, there are no “hard & fast” rules in answering this question. However, we looked at a similar scenario in our previous blog of the 19th October 2015 and the analysis there can also be applied here. Here’s the link to the blog in case you want to take a look https://wordpress.com/post/thecrawleypropertyblog.com/274
In reality, any renovation project should be concerned with making sure that what you plan on doing is “reasonable” and “fits in” with similar properties in the area. To that end, similar properties in the Tilgate area that have already been updated are being marketed for sale in the £280000 to £300000 price range. One property is up for sale at £295000, with a tenant in-situ. In terms of rental returns, however, properties like the one we are considering here currently rent out for between £1150pcm to £1200pcm.
If you consider a 5% rental yield as a benchmark return on your investment, these rents translate into prices ranging from £276000 to £288000 with an average of about £282000. Hence, spending £15000 to £20000 on top of a purchase price of £260000 to renovate the property would, in our opinion, not seem too excessive. Of course, the assumption is that the money is spent wisely and not, for example, on gold-plated taps ! One item that the selling agent hints at is the potential for off road parking (subject to planning consent). In our opinion, this would be something well worth considering if updating the property.
If you have your eye on a renovation project, be it to do up and sell or rent out, don’t hesitate to give us a call. We’d be more than happy to give you our opinion as to what would be reasonable to spend your hard earned cash on. Call us on 01293 515588 or e-mail us on crawley@northwooduk.com.
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