Tag: Southgate-Crawley

18th November 2015

1 bedroom flat, Southgate, Crawley

Here’s a nice looking 1 bedroom flat in Southgate, Crawley that has just come on to the market with Homes Partnership, for £169950. The flat is marketed for investors only, as there’s a tenant in-situ. So potentially, a ready-made investment for you. Here’s the Rightmove link for further details http://www.rightmove.co.uk/property-for-sale/property-56041028.html

Southgate 1 bed flat 18-11-15

A couple of points to consider before we get to the rental yield. The property details do not mention a shower over the bath. If the current tenant moves on we would advise putting one in, if there isn’t one already – just check with the agent in the first instance. The second point to note is that the property details mention the flat is freehold. Usually flats are sold leasehold. However, sometimes a share of the freehold is available as well. Again, just check this with the agent.

Ok, so what about the rental yield ?

Although the advertised details do not mention the rent currently being paid by the tenant, a property like this should fetch around £800pcm. So, based on this and the asking price of £169950, your rental yield would be about 5.6%. Which, in our opinion, is not too bad at all.

If you’re interested in purchasing the flat with the tenant in-situ, do make sure that you check the rent payment history. As we’ve said before, you want to buy an investment, not a nightmare !

If you’re looking to invest in property in and around Crawley, why not give us a call on 01293 515588. We’d be more than happy to have a chat with you about our favourite topic ! Alternatively, you can reach us by e-mail 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.

23rd September 2015

1 & 2 bedroom flats, Southgate Crawley

You don’t see this very often. Two flats in the same development at Godolphin Court, Southgate, Crawley, both being marketed at the same price of £180 000.

One of the flats is on with Connells (http://www.rightmove.co.uk/property-for-sale/property-36567399.html?premiumA=true) and the other with Homes Partnership (http://www.rightmove.co.uk/property-for-sale/property-54868772.html).

The difference between the two properties is that one of them is a 2 bedroom flat “in need of updating”, while the other is 1 bedroom flat in what looks like pristine condition from the marketing photos.

Godolphin 23-9-15So, which one do you buy ? To answer this question, we have to consider a number of factors.

A one bed flat in tip-top condition at Godolphin Court should achieve £775 to £800 pcm. Based on a purchase price of £180000, this gives a maximum gross annual yield of between 5.2% and 5.3%.

What about the 2 bedroom flat ? Well, firstly we would not recommend letting it out in its current condition ! Let’s say for argument’s sake, however, we spend £10k on renovations & re-decorating, to bring it up to the same standard as the one bedroom flat. Now, 2 bedroom flats at Godolphin Court in excellent condition should let for between £900 & £975 pcm.  Based on these rental figures and a purchase price of £180000 plus £10k renovation costs, we would expect to achieve a maximum gross annual yield of around 5.7% to 6.2%. If you can get some money off the purchase price, however, your yield will increase still further.

So, by adding value to the 2 bedroom flat and bringing it “up to spec”, you can see that a higher potential yield can be achieved in comparison with the “ready-made package” of the one bedroom property. Of course, this is not always the case. You must be very careful when buying a property that “needs updating” that (a) you do not buy it at too high a price and (b) you do not overspend on renovation works. If you’ve ever watched TV programmes like “Property Ladder” you’ll no doubt have witnessed how easy it is to get carried away and overspend on the initial purchase price as well as the subsequent property renovation.

If you’re looking to buy property to let or develop in Crawley, or would like an independent opinion of your current property project, why not give us a call on 01293 515588 or e-mail us on crawley@northwooduk.com.

19th August 2015

3 bedroom house, Southgate, Crawley

A very well presented 3 bedroom terraced house in Southgate, Crawley. The property is just on the market at £280 000 with Move Revolution, Rightmove link: http://www.rightmove.co.uk/property-for-sale/property-51286693.html#Southgate

From an investment point of view this type of property will probably appeal to a family rather than sharers or younger professional couples. Consequently in the long run you may find longer average tenancies. It’s also handy for the No.10 Fastway bus service to Gatwick airport or Manor Royal.

All things being equal, we would expect to achieve between £1150 & £1250 pcm in rent for this type of property, giving a gross yield of between 4.9% & 5.4%

If you’re looking for property investments in and around Crawley and would like some independent advice on something you have your eye on, why not give us call before you part with any money. Feel free to give us a call on 01293 515588 or e-mail crawley@northwooduk.com .