Month: May 2016

31st May 2016

3 Bedroom House, Foxglove Walk, Broadfield, Crawley

A lot of comment in the property press recently has concerned investors looking towards areas such as Manchester to purchase much higher yielding properties and off-set some of the effect of the recent tax hikes.

Somewhat closer to home, however, there are also relatively high yielding properties available in Crawley. One such property is a 3 bed terraced house in Foxglove Walk, Broadfield, Crawley that has recently been advertised by Estate Agents Zoom995. The property, which is on the market for offers in the region of £230000, is offered with no onward chain. Although Broadfield may not be regarded by some as one of the better parts of town, nonetheless rental yields can be relatively high here. To take a closer look at the property here’s the Rightmove link. http://www.rightmove.co.uk/property-for-sale/property-42153333.html

31-5-16 Foxglove Walk

Please do bear in mind that properties like the one considered here are principally family homes. As such, a large proportion of prospective tenants will consist of couples with children & possibly even pets. If pets & children are not your thing then our advice would be to steer well clear ! With regard to pets, however, you can always ask for a higher deposit and specify that any damage is repaired/replaced on an new for old basis.

So what about the rental yield ?

Properties like this one in Broadfield, Crawley rent for between £1100 to £1250pcm. Obviously time of year and internal/external condition will be major factors in determining just how much rent can be achieved. However, based on an asking price of £230000 and the rents quoted above, gross rental yields will range from around 5.7% to 6.5%. These yields are pretty good and some of highest we’ve seen in Crawley. Don’t forget that you will also have to pay an extra 3% stamp duty surcharge if you already own a property. However, with average rental yields in the UK at around 5%, this property in Broadfield could offer an investor an above average return.

Whether you’re a seasoned property investor or considering the buy-to-let market for the first time, why not give us a call to discuss the opportunities that Crawley  & surrounding towns have to offer. Our advice is free and what’s more…….we don’t bite ! Alternatively, you can always drop us an e-mail to crawley@northwooduk.com.

The opinions expressed in this article are those of the author only and not of Northwood. If you are considering investing in property, please make sure that you seek appropriate professional advice.

 

 

 

 

12th May 2016

1 Bedroom Apartment, Nr Manor Royal, Crawley

We featured this apartment block in our blog way back in November 2015. The block, which used to house First Choice holidays, has been coverted from office to residential space under the The Town and Country Planning (General Permitted Development) (England) Order 2015

Astons estate agents have just marketed a tenanted one bedroom apartment for sale at offers in excess of £170000. Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-52626376.html

First Choice House 12-5-16

According to the agents the tenants are currently paying £750pcm in rent. Based on a purchase price of £170000, a rent of £750pcm would give a potential gross yield of around 5.3%.

Of course, if you were to buy this property as an investor, you’ll probably be liable to pay the 3% stamp duty surcharge that was introduced by the government from 1st April 2016.  Although you should be able to reclaim the additonal tax paid when you eventually sell-up, the surcharge amounts to an additional £5100 in upfront costs. If we re-calculate the rental yield with the additional tax added to the purchase price i.e. to give £175100, then the yield drops to just over 5.1%.

Hence, despite the additional 3% stamp duty surcharge, the gross rental yield for this property is still very respectable at over 5%. As there was a rush by investors to complete property purchases before the 1st April stamp duty hike, there is probably a lower level of demand for this type property at the moment. As such, the seller may well be open to an offer. If you don’t ask, you don’t get !

If you’re new to property investment and would like some advice about what and where to buy in & around Crawley, why not give us a call. We’d be more than happy to discuss your requirements or even visit a property you’re thinking of buying – it’s a free service that we offer ! Alternatively, you can also e-mail us at crawley@northwooduk.com.

The opinions expressed in this article are those of the author only and not of Northwood. If you are considering investing in property, please make sure that you seek appropriate professional advice.