Tag: family home

6th June 2016

3 Bedroom Terraced House, Southgate West, Crawley

Isn’t it amazing how much better & more inviting properties look when the sun comes out !

Take a look at this property, a 3 bedroom terraced house in Downland Drive, Southgate West, Crawley which is being marketed by Williams Harlow of Banstead, Surrey at £275000. Here’s the Rightmove link for a closer look http://www.rightmove.co.uk/property-for-sale/property-54035092.html

6-6-16 Downland Dr

From the marketing photos the property looks to be in good condition and, in addition, also has a garage.

So what about the rental yield ?

Market rents for 3 bedroom houses in the Southgate West area of Crawley are in the region of £1200pcm to £1300 pcm and possibly even higher. Based on these rents and a For Sale price of £275000, the potential gross rental yield would range from 5.2% to just under 5.7%. We think you’ll agree, these rental yields are really quite impressive.

Do remember that one of the key markets for a property like this are families. Families often come with children & children often come with pets ! So if you have an aversion (in the lettings sense) to either children or pets, it’s probably best not to consider a property like the one here. On the plus side, however, families do tend to stay longer as they put down roots in an area & children get established in the local schools. Void periods i.e. empty periods between tenancies, should therefore be lower.

If you’re looking to invest in property in or around Crawley, why not give us a call on 01293 515588 for a chat. We have a wealth of experience & knowledge in the lettings business and can provide you with free advice to make sure you get the most from your property investments. Alternatively , just 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.

 

13th November 2015

3 bedroom house, Bewbush, Crawley

Connect-UK are marketing this 3 bedroom house in Bewbush, Crawley at £259950. The property is being marketed to “investors Only”, which often means that a tenant is in-situ. A call to Connect, however, should clear that up. Here’s the Rightmove link for further details https://www.rightmove.co.uk/rmplus/property/showPropertyMcr.action?propertyId=37700691

Colwyn Cl 13-11-15

If you’re interested in the property and it is being sold tenanted, do check that they are up to date with the rent and are looking after it well. After all, you want to buy an investment property, not a nightmare (and it is Friday 13th !) – scary thought.

Properties like this in Bewbush, in good condition, can rent for around the £1200pcm mark. We know that for sure because we recently rented one in the same location !

For investment purposes this house would primarily suit a family. As we’ve mentioned before, all things being equal, families tend to stay in properties for longer, so your turnover of tenants & void periods should be shorter in the long run.

Based on the purchase price of £259950 and a rent of £1200pcm, the gross yield for this property would be around 5.5%. So not bad at all.

If you’re looking for investment properties in and around Crawley, why not call us up for a chat on 01293 515588. Alternatively, do drop us a line to crawley@northwooduk.com.

21st October 2015

3 bedroom terrace house, Tilgate, Crawley

This 3 bedroom house in Tilgate, Crawley, popped on to the market yesterday with estate agents Moore & Partners. The Guide Prices starts at   £260000. From the pictures the property looks to be in very good order and should make an ideal family home whether renting or buying. For more details have a look on Rightmove. Here’s the link: http://www.rightmove.co.uk/property-for-sale/property-49700830.html?premiumA=true.

Apparently there’s an open day on the 24th October, so if you’re interested give the agent a call and have a look round.

Johnson WalkIn the present market, houses like this one will usually rent for between £1150 pcm to £1250 pcm. If you could secure the house at the lower end of the guide price range, these rental figures translate into a gross yield of between 5.3% to to 5.8%. Pretty good !

Two things to bear in mind. If you’re an investor with nothing to sell and are willing to progress the sale quickly, this can be attractive to a vendor. The vendor could therefore consider an offer from you more favourably than someone else who is, for example, in a sales chain. The other point is that the lettings market usually goes fairly quiet over Christmas, not picking up again until late January /early February. As such, if you purchase the house and complete during the festive period, you may have a longer than usual void period i.e. when the property is without a tenant. Don’t panic (Captain Mainwaring !), however, as the lettings market normally picks up again at the end of January / beginning of February.

If you’re considering buying an investment property in Crawley or the surrounding towns, why not give us a call on 01293 515588. If you see a potential investment property through another agent, we’re more than happy to take a look ourselves on your behalf. We can then give you an unbiased opinion on whether the property represents a good investment or not. There’s no charge for this either ! Alternatively, drop us an e-mail to crawley@northwooduk.com.

19th October 2015

Renovation Project  – Does it Stack Up?

3 bed semi, Three Bridges, Crawley

Here’s a three bed semi-detached house in Crabbett Road, Three Bridges, Crawley, in need of complete modernisation. The property is being marketed by Fox & Sons with a guide price of £260000 to £280000. If you can buy the property at the right price and take care not to overspend on the renovation costs, the property could be a good investment. Here’s the Rightmove link for more details: https://www.rightmove.co.uk/rmplus/property/showPropertyMcr.action?propertyId=37026873

Crabbett Rd 3 BridgesSo I can hear you asking, is it a good buy or not?

Well, there are clearly two aspects to this property from an investment point of view. Doing it up and then either selling or letting it out.  Let’s consider the property from the point of view of renting.

Assuming that you’re not a “slum landlord”, the property clearly needs a top to bottom revamp. You’ll also notice from the picture above that the house next door has off-road parking to the front and what looks a garage at the end of the shared driveway. In our opinion, both off-road parking and a garage would be highly desirable and would need to be factored in to any cost analysis. Remember that when these properties were built, families did not usually own more than one car, if that. Nowadays, however, many have 2 or even 3 cars. So providing additional parking/garaging space is, in our opinion, a priority to seriously consider.

One way of seeing whether an investment deal stacks up is to consider how much it would rent for. If we assume that the property is in “tip-top” condition, with additional parking etc…., we would expect it to rent for around £1200pcm (and may be a bit more) in the current market.

Now assume that the property achieves a sensible gross yield of say 4.5% to 5%. Based on the achievable rent and yield figures, we can now calculate how much the property should be worth. If you like, this is a “reverse yield” calculation, where we know the likely achievable rent and a sensible range of yields for the property type.

So, based on a 4.5% to 5% gross rental yield and a rent of £1200pcm, the value of this property in “tip-top” condition would be expected to be somewhere in the region of £288000 to £320000.

Does this range of calculated values for the property look sensible, or is it wide of the mark?

Well, looking at the Rightmove comparables there is in fact another property in Crabbet Road which was marketed at “Offers in Excess of £330000” by agents Mansell McTaggart. This property is now under offer – here’s the link https://www.rightmove.co.uk/rmplus/property/showPropertyMcr.action?propertyId=50464786. The Mansell McTaggart property, however, has a large garden & has been extended to give additional downstairs space and 3/4 bedrooms. However, like the property we’re considering, it also needs modernisation.  In our opinion, our calculated price range does seem to fit reasonably well with that of the slightly larger property advertised by Mansells.

Now for the final bit…. at last!

Let’s assume that the property we’re considering is now in tip-top condition and worth about £290000 i.e. towards the lower end of our calculated value range. If we bought the property for £260000, we would have in theory £30000 to play with in order to do the renovation work. If we spent any more than this, we may well be overspending and putting more money in to the property than it is worth. Of course, if the property once renovated were worth £300000, we would effectively have £40000 to invest in the renovation works, before we started to overspend.

Having completed our calculations and looked at the comparables for both sale and rent, the property appears to stack-up as a potential investment…. at least on paper.  If we were interested in going further with this property, we would now need to view it and see just how much money was needed to be spent, in order to bring it up to “tip-top” order.  For this we may also need to take trades people along to provide quotes for the work required.

If you’re looking for a renovation project, or want a second opinion on one that you have your eye on already, why not give us a call on 01293 515588 for a chat. Our advice is free. Alternatively, just drop us an e-mail to crawley@northwooduk.com.

10th October 2015

2 Bedroom, Split Level Maisonette, Ifield, Crawley

Take at look at this 2 bed, split level maisonette in Ifield, Crawley, that has just come on to the market. The property is a “Commission property” i.e. built as part of the Crawley New Town development, post 2nd World War. As such, although it is not new, it has the advantage of much larger all round accommodation, compared with its contemporary counterparts. Add to that a large private garden and we think it would make a good long-term investment.

The property is being marketed by Martin & Co with a Guide Price of £210 000. Here’s the Rightmove link for further details: http://www.rightmove.co.uk/property-for-sale/property-51870907.html

Ifield - Warren DrProperty like this one in Ifield, Crawley, will appeal particularly to couples with young children because of the private garden. Based on the guide price, to get a 5% gross annual return, you would need to achieve a rent of £875pcm. We would estimate that a property like this should achieve £875pcm to £950pcm.

If you’re looking for property investment in and around Crawley, or know someone who is, give us a call on 01293 515588 to discuss what options are available in the area. Alternatively, e-mail us on crawley@northwooduk.com.

8th October 2015

3 Bed Semi, Three Bridges, Crawley 

This property has just popped up today in St Richard’s Mews, Broomdashers Road, Three Bridges, Crawley. On the market with King & Chasemore for offers in the region of £290 000, the property was previously marketed for £299 950 from April this year. The drop in price is probably an indication that the vendors are motivated and would really like to sell in the current “selling season”. For more details here’s the Rightmove link: http://www.rightmove.co.uk/property-for-sale/property-54703412.html

Broomdashers 8-10-15As an investment, this property would appeal to a family with children. In our opinion it is has a number of things going for it. These include: 2 allocated parking spaces and proximity to local schools, the town centre & Three Bridges station for fast trains to London – good for commuters. Decoratively, at least from the pictures, it also appears to be in good condition.

The other feature we like about this property is that it is Halls Adjoining with next door. So, if the next door neighbours are overly sensitive to noise from TV’s etc….. the doors to the lounge/diner can be closed providing a sound barrier. Less hassle for tenants, neighbours & landlords alike !

Looking at houses in the area from a rental perspective, this type of property should achieve between £1200pcm & £1250pcm (and may be more). Based on these rental figures and assuming you could secure the property for £290 000, you would expect to get a gross yield of between around 4.9% to 5.2%. Of course, as an investor with (presumably) no dependent sale, you might be in a strong position to negotiate the price even lower, particularly if you are willing to do the deal quickly !

If you’re an experienced landlord looking for new property investments, or perhaps you’re new to “Buy-to-Let” and would like some advice, why not call us on 01293 515588 for a chat about  the different options Crawley has to offer. You can also e-mail us on crawley@northwooduk.com

25th September 2015

3 bedroom house, Southgate, Crawley

Here’s another “doer upper” for you to consider. A 3 bedroom terraced house, in Southgate, Crawley.  On at £250000 with local Crawley agent, Taylor Robinson, the Rigtmove link for further details is http://www.rightmove.co.uk/property-for-sale/property-51725176.html.

We’ve recently let a 3 bedroom house in the same area for £1150pcm. Based on this and the purchase price quoted above, you’d get a maximum gross annual yield of  5.5%.

SG25-9-15

However, realistically speaking if you buy this property you’ll have to spend money getting it into a lettable condition. From the picture above the curb appeal could certainly do with improving! Remember one of our lettings Mantras: Good / excellent condition gives higher rents and lower void periods.

In our opinion, the property would need a complete makeover with new bathroom and kitchen. Walls, ceilings, woodwork etc…should be repainted and then new flooring & kitchen appliances installed. If you spent £10k to £15k on the works required and then let the property for £1150pcm, your maximum gross annual yield would still be above 5%, ranging from 5.2% to 5.3%. Not too bad at all.

If you can negotiate the purchase price down, then so much the better. Don’t be frightened to ask for a price reduction and be prepared to walk away if your figures don’t add up. Another word of warning – keep a tight rein on the renovations costs !

If you’re looking for property investments in Crawley or would like a second opinion on a “doer upper” project, we’d be more than happy to have a chat. Give us a call on 01293 51558 or send an e-mail to crawley@northooduk.com.

24th September 2014

3 bedroom house, Gossops Green, Crawley

If you’re looking for a project with great rental potential, here’s a 3 bedroom house, just on today at £250000 with Blakemore & Sons. You’ll notice from the internal photos that the property could do with a makeover. Here’s the Rightmove link for a closer look http://www.rightmove.co.uk/property-for-sale/property-51687262.html.

By renovating / re-decorating a property like this you’ll have a much better chance of reducing void periods and also attracting the best quality tenants. Not rocket science if you think about it.

GG 24-9-15

Assuming that the renovation did not set you back any more than say £5000, you would expect to achieve rent of between £1100 & £1200 pcm. Based on a purchase price of £250000 plus £5000 to renovate, you should expect to get a maximum gross annual yield of between 5.2% and 5.6%. Not bad at all. Of course if you can negotiate the price down a bit, so much the better !

If you’re a property investor looking for your next buy-to-let deal, or perhaps new to this business and making your first tentative enquiries about investing in property, why not give us a call to discuss the different options in the Crawley area. You can also e-mail us on crawley@northwooduk.com.

19th September 2015

Three Bedroom House, Ifield, Crawley

Some property investors are concerned about buying leasehold properties. They’re worried, for example, about the maintenance charges levied by the freeholder, what happens to the communal areas in the case of flats etc.. etc….

Investing in leasehold properties is fine in our opinion. However, freehold properties are equally as good. So, if you feel happier owning the freehold, why make life more difficult for yourself by buying leasehold ! ?

So, here’s a potential freehold investment property. It is a 3 bed terraced house in Ifield, Crawley, close to Ifield train station. In good condition, these types of properties will normally rent for upwards of £1200pcm. This property is marketed by King & Chasemore, Crawley, with a guide price of £270 000. For more details, here’s the Rigtmove link: http://www.rightmove.co.uk/property-for-sale/property-54774053.html

Treyford 19-9-15From the marketing photos the property looks in good condition (but do please check !) and has a garage en bloc. There are also local schools close by, which brings us nicely on to the subject of the type of potential tenants properties like this will tend to attract. Any guesses ?

If marketed in the right way a property like this 3 bedroom house will, of course, attract families. Proximity to schools is very often a major consideration for these types of tenants and this property has both primary & secondary schools close by.  If you’d like to know more about letting these types of properties – both pros & cons – we have a free guide to help you. Just send us an e-mail and we’ll forward it on.

Back to the figures…what about the yield ?

Well, based on the guide price and a rental figure of around £1200 pcm, you would expect a maximum gross annual yield of 5.3 %. With a bit of tough negotiation, however, you might be able to get a price reduction & improve the yield figures. As estate agents ourselves we can give a bit of “inside information” – strictly legal of course ! – about presenting any offer you care to make in the best possible light. Just let us know and we’ll forward the information to you.

If you’re looking for property investments in and around Crawley, or would like a an independent opinion on a property you have your eye on or are buying through another agent, why not give us a call. We’re on 01293 515588. You can also e-mail us on crawley@northwooduk.com.

16th September 2015

2 bed maisonette, Langley Green, Crawley

Take a look at this very well presented 2 bedroom, ground floor maisonette in Langley Green, Crawley. It’s marketed by Moore & Partners with a guide price of £220 000. For a closer look, here’s the Rightmove link http://www.rightmove.co.uk/property-for-sale/property-54712082.html

LG 16-9-15Now, for £220000 you could probably get a more modern 2 bedroom flat over in Pembroke Park, Crawley, close to Three Bridges train station with its fast rail links to London. Langley Green, however, is a little more out of the way in terms of main line rail access, but this property does some have some very good features.

One feature we like is the room sizes. As this type of property is from the Crawley New Town “commission” era, its room sizes are pretty large compared to its more modern counterparts. In addition, you have your own private garden and it is likely to have a much lower annual maintenance charge compared with new build flats. But do please check !

This type of property would appeal more to a couple or young family (because of the size & outside space), rather than “professional sharers”. We’ve just let a similar property for £975pcm and there are other examples around that rent out at a similar price.

Based on the guide price, a rent of £975pcm would translate into a gross annual yield of 5.3%. So not too bad at all. If you’re interested, one word of warning though, do check to see why the EPC rating is only a D. It might even give you some room for negotiation on the price !

If you’re interested in the Crawley buy to let market, whether as an experienced landlord or someone thinking of investing for the first time, why not call us on 01293 515588 for a chat to discuss some of your ideas, or e-mail us on crawley@northwooduk.com.