Tag: 2016

11th February 2016

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1 Bedroom Maisonette, Bewbush, Crawley

King & Chasemore estate agents are advertising this 1 bedroom maisonette in Waterfield Gardens, Bewbush, Crawley at Offers Over £160000. The pictures look very good indeed and the agent says that the property has been well looked after. The main picture they’ve used is one of the lounge/diner and it does look very inviting !

Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-39865725.html

Waterfield Gdns 11-2-16

The accommodation appears to be of a good size and properties like this can achieve between £700 pcm to £750 pcm in rent. Based on these rents, the rental yield ranges from around 5.3% to 5.6%, so very respectable indeed.

In terms of purchasing, as an investor you would probably be competing against first time buyers & people downsizing. For rental purposes, however, your target markets are more likely to be young or older couples (without children) & possibly singletons.

If you’re looking to invest in rental property and would like some advice about what to buy and perhaps more importantly, what NOT to buy, give us a call on 01293 515588. Our advice is free and we’d love to hear from you. You can also e-mail us on crawley@northwooduk.com.

 

 

 

 

8th February 2016

2 Bedroom Maisonette, Langley Green, Crawley

Choices estate agents have just put this 2 bedroom maisonette on the market today, with a guide price of £210000 to £220000. From the few internal photographs, the property looks to be in good order. Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-52959433.html

Langley Dr Maisonette 8-2-16

One of the advantages these types of properties have over their more modern counterparts, is that the accommodation tends to be larger in size. For this particular property another plus point is that it has its own private garden. However, if you’re interested, please check whether or not the garden is attached/detached to the property. As the name suggests, with a detached garden you have to go out of your front door to gain access to the garden. This arrangement is clearly less desirable, particularly for people with children, than  the “attached” type. A quick call to the agents will clarify the matter.

From an investment point of view, the target market for this type of property would probably be a young family or alternatively, an older couple. The key for us, however, will be the garden location.

All things being equal, does the price stack up in terms of rental yield ?

Properties like the one we’re considering here currently let from between £950pcm to £975pcm. So based on the guide price, we can easily calculate the best and worst case rental yields. These come out at around 5.2% to 5.6%. So pretty healthy all round.

If you’re considering property investment in or around Crawley, it is crucial to identify the different target markets that your property will appeal to. If you’d like any advice on which type of property suits which type of tenants, why not give us a call on 01293 515588. We’d be more than happy to give you some free advice. Alternatively, you can drop us an e-mail to crawley@northwooduk.com.

 

 

 

 

5th February 2016

2 Bedroom House, Cottesmore Green, Broadfield, Crawley

Here’s a presentable 2 bedroom terraced house that has just come on to the market with estate agents Connect UK at £215000. From a quick scan of the marketing photos we would say that the property may well be empty – not much on the kitchen worktop & the fridge/freezer plug looks as though it’s been pulled out. Take a closer look and decide for yourself –  here’s the Rightmove link http://www.rightmove.co.uk/property-for-sale/property-39735858.html

Cottesmore Grn 5-2-16

If the property is empty and there is a mortgage to pay, the seller may well be flexible with the asking price. So if you’re in a strong position with your finances arranged, don’t be frightened to use your bargaining position to negotiate a favourable deal.

There are two other pieces of useful information to consider about this property.

Firstly, the details say there is no onward chain. This could help you by potentially speeding up the sales process. If you can complete on the purchase before the start of April you won’t be liable for the additional 3% stamp duty charge the chancellor is bringing in for the purchase of second properties.

The second piece of information is that this property is not a leasehold flat ! We know that’s obvious just from the picture, but the buying process for flats tends to be more protracted than for freehold houses. The reason for this is that as part of the sales process, management information from the freeholder’s agents will have to be obtained. This can add weeks on to the length of time between an offer being accepted and completion taking place. So if you’re in a hurry (to beat the April deadline), buying a house rather than a flat would seem a sensible option, given the choice.

So what about the rental yield ?

Two bedroom properties like this rent from around £900 pcm upwards. In fact a similar property just around the corner in Jersey Rd was advertised at £1000pcm and has recently been let. Of course, as with property sales, the advertised & agreed rental prices may differ.

However, based on rents ranging from £900pcm to £1000pcm, together with the advertised sale price of £215000, the gross rental yield would range from 5.0% to 5.6%. So quite a good yield for the Crawley market. As always, if you can negotiate a price reduction, your yield will increase. Over to you if you’re interested.

If you’re a potential investor or just curious about property investment in and around Crawley, why not give us a call on 01293 515588. We’d love to hear from you. Alternatively, why not drop us an e-mail to crawley@northwooduk.com.

 

 

3rd February 2016

1 Bedroom Maisonette, Pound Hill, Crawley

Two properties for you today !

Both are 1 bedroom maisonettes in Wakeham Greens Drive, Pound Hill. The properties are being marketed by estate agents Mansell McTaggert and Park & Bailey. Coincidently,  both are priced at £150000.

It is quite possible, of course, that these properties are one and the same but being marketed by different agents – we had thought of that ! However, from a close inspection of the fixtures & fittings in the kitchen, it would appear that they are actually two different properties. If you’re not convinced, here are the Rightmove links for a closer look  http://www.rightmove.co.uk/property-for-sale/property-52875145.html  &  http://www.rightmove.co.uk/property-for-sale/property-39646083.html .

Wakeham Greens Dr #3

From the internal pictures the properties look in pretty good decorative order. In the current rental market you would expect to achieve £700pcm  to £750pcm in rent.  Based on an asking price of £150000, this would give you a potential gross yield of 5.6% to 6%. So, not too bad at all. We actually featured a similar property back in October 2015 – this time a 2 bedroom maisonette. The yield calculations gave virtually identical results. If you’re interested, here’s the link https://wordpress.com/post/thecrawleypropertyblog.com/222

Pound Hill is one of the more favoured locations in Crawley. In addition, from our experience, your potential tenant(s) should not have any issues finding places to park their car. These properties are further from Three Bridges mainline station than the likes of flats at Trafalgar Gardens, Maunsell Park, Jacobs Court etc…. However, the distance is definitely “walkable” in our opinion and should not put people off.

Both properties are being offered with no onward chain, so if you want to beat the April stamp duty deadline, you’d better give the agents a call !

If you’ve seen an investment property that catches your eye and would like an independent opinion on its merits for the rental market, give us call before you part with any cash on surveys etc… We’ll give you an honest opinion on what we think the property will let for. We’ll also be able to advise on whether you need to do any improvements, such as decorating, to achieve the maximum from your investment. Don’t hesitate to give us a call on 01293 515588 or send 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 you should seek 
appropriate professional advice.

 

 

 

 

 

 

 

1st February 2016

Crawley v’s Redhill: Investment Property – Not Football !

One of our landlords called up the other day looking to invest in another flat. Flats are his thing rather than houses and he already has investment properties in both Redhill & Crawley. He’d seen a few flats for sale in both towns and was asking our advice as to which location we thought would be better.

This got us thinking about both capital growth & rental yields in both towns. So we decided to take a closer look by comparing roughly similar types of properties in both locations, to see which one was the “best”.

Crawley people will be familiar with the Maidenbower flats at Fenchurch Road, Lyon Close and Dakin Close, while those from Redhill will be familiar with the “St Anne’s” development. Both locations are fairly convenient for their respective town centres and mainline stations to & from London. As such, the flats were and remain very popular with both tenants & landlords alike.

In order to compare the two locations we have used price paid information from HM Land Registry. Historic rental prices, as advertised on Rightmove & Zoopla, were used to calculate rental yields. In Table 1 we show the average prices and capital growth percentages for the flats in Redhill & Crawley over the last 15 years.

Table1: Average prices & capital growth

Table1 1-2-16

* Calculated from Land Registry price paid data

Prices in 2000 were roughly the same for both locations, give or take just under £6k. However, average prices for the Redhill flats have increased by 130% over the last 15 years, giving a year on year average compound rate of increase of around 5.74%. This can be compared with Crawley where there has been a corresponding overall increase of 107%, or an average compound rate of increase of 4.97%, year on year. In monetary terms the average Redhill flats have increased by about £129300 over the last 15 years, whereas an average Crawley flat has “only” managed an increase of £99650 i.e. a difference of nearly £30k !

However, as we’ve previously mentioned before in these blog articles, there are two sides to every story and property investment is no exception. For property investment, the flip side to capital growth is rental yield i.e. how many pounds we get back in rent for each pound we invest. Areas with higher rental yields tend to come with lower capital growth and vice-versa. However, combine both and you get a much fuller picture of how well a particular investment is performing.

The investment strategy of the landlord who prompted this article is fairly well balanced between capital growth on the one hand & rental income on the other. In a perfect world he’s happy to sacrifice some capital growth for rental income, so that his investments cover running costs and provide some additional income on top. His running costs include a float for the inevitable breakdowns & repairs, as well as money for refurbishing his properties every 4 to 6 years to keep them fresh & up to date.

So on the face of it, investing in the Redhill flats is a better option in terms of Capital Growth than Crawley. However, what about Rental Yield ?

In Table 2 we show average gross rental yields over the last 10 years for the Crawley & Redhill flats in question.

Table 2: Average Gross Rental Yields

Table2 1-2-16

The figures in Table 2 show that on average the Redhill flats have a lower average gross rental yield compared with those in Crawley. Over the last 10 years, the difference in yields, shown in the middle column, vary from 9.8% to 16.0%. Another way to interpret this difference is that for every pound you invested in the Crawley flats, you get between 9.8% & 16% more back in rent.

So although the Redhill flats outperform Crawley in terms of Capital Growth, Crawley is clearly the winner when it comes to Rental Yield. Deciding on whether Crawley or Redhill are “best” for you will depend on your investment strategy….. is it driven by income or long term capital growth ?

As far as our landlord is concerned, he’s gone away to think over his investment strategy. His considerations are now whether to change the balance of his portfolio to give higher rental income (i.e. higher yield), sacrifice some of the income for longer term capital growth or stay as he is. We’ll keep you posted on what he decides to do !

If you’re thinking of investing in property in Crawley or surrounding towns, it’s well worth speaking to a property professional who can help point you in the right direction. What & where to buy will depend on your investment strategy, which may be balanced or more skewed towards either capital growth or rental income. We’re more than happy to provide you with free independent advice on any investment purchase you might be contemplating. Just pick up the phone and give us a call on 01293 515588. Alternatively, you can also drop us an e-mail to crawley@northwooduk.com. We look forward to hearing from you.

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

 

 

29th January 2016

2 Bedroom Flat, Broadfield, Crawley

Here’s a 2 bedroom flat that has just come on to the market with Inspire Estate Agents at £185000. Although Broadfield may not be the most popular location in Crawley, remember that property correctly priced will always sell or rent. This flat also comes with the added bonus of a garage – definitely a selling point. Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-57580043.html

Hayling Ct 29-1-16

The location of this flat in Broadfield is very convenient for the Fastway bus service with access to Crawley Town Centre & Gatwick airport. So for airport or town centre workers it’s ideal. We’ve had a similar property on our books for a number of years now and have not had any issues letting it out.

Bearing in mind that there are two double bedrooms and a garage, rents for these types of flats are between £875pcm and £925pcm – depending on condition and when the property is marketed. These rents compare favourably with those for more modern flats close to Three Bridges station, which now let for up to £1100 pcm !

So, if you considered purchasing this flat, based on the asking price and anticipated rent, you would expect to see a gross rental yield of between 5.7% & 6%. These are fairly high yields for the Crawley market. Do remember, however, that high yields are often accompanied by lower capital growth. Still worth a look though, depending on your investment strategy.

If you’re looking to invest in the Crawley property market we’d love to from hear, even if your plans are only tentative at the moment. Just give us call on 01293 515588. What’s more any advice we give is free ! Alternatively, you can drop us an e-mail to crawley@northwooduk.com. Look forward to hearing from you.

 

 

 

23rd January 2016

2 Bedroom Flat, Milton Mount, Pound Hill, Crawley

Presumably this is the view from this 2 bedroom flat, marketed by King & Chasemore at offers over £190000. The property is offered chain free, which will be all important if you are an investor looking to beat the April hike in stamp duty. Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-39010425.html

18-1-16 Milton Mount

The flats at Milton Mount are built in picturesque grounds of a former country house estate. The flats themselves are fairly spacious compared with their more modern counterparts.

In good condition these flats will rent for £950pcm upwards. For example, we recently let a two bedroom flat here for £995pcm. The rental yield, based on an asking price of £190000, should therefore be between between 6.0% and 6.3%. So not too bad at all !

If you’re looking to invest in Crawley and have your eye on a potential property, why not give us a call on 01293 515588. We’d be more than happy to take a look at the property for you and advise on how you could potentially maximise your investment. Alternatively, drop us an e-mail to crawley@northwooduk.com.

 

21st January 2016

2 Bedroom Apartment, Three Bridges, Crawley

The Pembroke Park development in Three Bridges, Crawley is ever popular with both tenants and investors alike. Here’s a 2 bedroom apartment on the development being marketed by estate agents Moore & Partners with a guide price of £210000. The property details indicate a price range of £210000 to £230000. For a closer look here is Rightmove link :  http://www.rightmove.co.uk/property-for-sale/property-39221817.html

Commonealth Dr 18-1-16

The property looks to be in good condition from the marketing photos and the apartment block itself benefits from lift access – always useful for carrying the weekly shopping ! In addition, there is a an underground parking space, a balcony and the property is offered with no chain. Other similar apartments are being offered mostly at slightly higher prices, although the vendors here would presumably like to get as close to £230 000 as they could.

As we’ve said before, flats at Pembroke Park are in an excellent location for access to Three Bridges mainline station (fast trains to London & the South Coast), Manor Royal and Gatwick Airport.

Properties like the apartment featured here attract couples as well as professional sharers. It is therefore good to know that the main family bathroom has a shower over the bath, with tiling up to the ceiling in the “bath area”.

In terms of rent, these apartments are now commanding between £1000 and £1100 pcm. Taking the best and worse case scenarios in terms of purchase price paid and rent achieved, you get a potential range of gross rental yields between 5.2% & 6.3%. Pretty healthy indeed.

If you’re considering investing in property in and around the Crawley area, either now or some time in the future, you can always give us a call for a chat. Our advice is free and if we don’t know the answer to your question, we  almost certainly “know a man who does” ! So, give us a call on 01293 515588 or alternatively drop us an e-mail to crawley@northwooduk.com.

 

 

 

 

18th January 2016

Studio Apartment, Broadfield, Crawley

Here’s a studio apartment that has just come on to the market with Astons estate agents priced at £119950. Considering it’s January, the picture is not exactly seasonal and there are no internal photos. However, here’s the Rightmove link in case you want to take a further look. http://www.rightmove.co.uk/property-for-sale/property-52649125.html

17-1-16 Broadfield Barton Studio

Depending on internal condition, properties like this studio can achieve rents of between £625pcm & £675pcm. The location is very good for Broadfield as it is close to the local shops, healthcare centre and the Fastway bus service – with excellent access to Crawley town centre, Manor Royal and Gatwick Airport.

Based on the advertised purchase price of £119950 and an average rent of £650pcm, the gross yield comes out at a very respectable 6.5%.

Do remember, however, that properties with higher rental yields tend to “suffer” from lower long term capital growth. Having said that, the Zoopla price paid information (http://www.zoopla.co.uk/house-prices/west-sussex/crawley/broadfield-barton/?search_source=top_nav) indicates that this property sold for £23250 way back in March 1995. If the property sells at its asking price some 21 years later, it would have increased in value by just over 415% ! Still, 21 years is a long time to wait !

If you’re looking to make an investment in rental property in Crawley or surrounding towns, why not give us a call on 01293 515588. Our advice is free and we’ll be able to give you an unbiased opinion of the pros & cons of the property market in the area. Alternatively, you can e-mail us at crawley@northwooduk.com.