2 Bedroom Flat, Southgate, Crawley

Yield, Yield & more Yield !

In the last couple of articles we’ve posted details of flats with potentially high gross rental yields. Well, here’s another !

Astons Estate Agents are marketing a 2 bedroom flat for sale at Caburn Court, Southgate, Crawley, with offers in excess of £180000. Although the flats in this development are much older than the likes of those at Woodfield Lodge or Commonwealth Drive, don’t let the rather drab exterior put you off. If you’re looking for higher yields from your property investments, flats like these are certainly worth considering. Here’s the Rightmove link for a closer look. http://www.rightmove.co.uk/property-for-sale/property-59754086.html

Unfortunately there are no internal shots of the flat, which might possibly mean that it may need some work, such as redecoration. Speak to the agents if you’re interested and ask them to tell you about the internal condition. Similar properties to the one shown here are currently under offer at the £195000 mark and there is even one being marketed at £200000 – although it hasn’t yet sold. So potentially there may be scope in the asking price to provide a budget for renovation work if needed.

In good condition, these flats will let for between £850pcm & £925pcm. Based on the asking price of £180000, this would give a potential gross rental yield of between 5.7% to 6.2% – quite impressive, we think you’ll agree ! However, if you were to purchase the flat and then spent say £20k on renovations works (if needed) – new bathroom, new kitchen, new flooring and re-decoration –  your gross rental yield would still be in excess of 5%, but now range from 5.1% 5.6%.

Hence as a potential high yielding investment, the flat at Caburn Court might just tick all of the boxes !

If you’d like to know more about Crawley & surrounding towns from a property  investment perspective, give us a call on 01293 515588 and we’d be more than happy to talk to you about our favourite subject !  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.

 

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.