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
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.
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