Investment Opportunity in Broadfield - 5.2% yield

I had discounted this property when it was first listed in June with neighbouring agent Taylor Robinson.  The original price was too high for investors however the recent price reduction of £15,000 makes it much more attractive. 

http://www.rightmove.co.uk/property-for-sale/property-30647433.html

A conservative rental figure of £850 per month will give a 5.2% yield and looking at the photo’s it is almost in a “move in” condition and it has a relatively new boiler fitted.

Admittedly it is not the prettiest house in the village but tenants will be attracted to the large garden and it is in the perfect position to catch either the No.10 or No.20 FastWay routes direct to Gatwick.  And who knows, its already had one price reduction – with a bit of haggling the price may come down even more.

Take advantage of a 6% yield in Tilgate

I have previously highlighted a Tilgate property & if you missed it here is another.

Offering both rental yield and capital appreciation it would make a solid purchase. This great little maisonette in the Tilgate area of Crawley is on to the market with local agent Choices.

http://www.rightmove.co.uk/property-for-sale/property-47256398.html

Having checked through the data these properties were being sold for £130,000 in 2006, today’s marketing price represents a 30% increase in capital value.  I have let a number of these properties, the last one rented at £850 per month which at the current marketing price is a 6% yield.

Famed for its park, nature centre and lake, the Tilgate area of Crawley is favoured by young families because of the access to schools and the extensive leisure facilities and is also home to the well-equipped K2 centre with pools, gym and sports facilities.

Is The Crawley Market Booming?

The Crawley property market appears to be booming so we took a look through the results of the recently published census and housing survey to see what it could tell us.  The data was compiled a couple of years ago and it is true to say that since then the house prices have risen substantially but prices do not tell us about the type of housing stock & demand.

The statistics show that Crawley & the surrounding villages are a landlords paradise with a good proportion of privately rented property.  Within this area 48,334 households, just over 6 out of 10 properties are owner occupied.  A further 22% are social rented properties which is a definite nod to the new town roots of Crawley in the 1950’s.  That leaves the remainder, just about 18% or to put a number on it, 8000 households as rented properties.  This puts Crawley firmly in the centre of the national average, the latest English Household Survey reports that the national average for England to be 18% but there is a wide variation around the regions.  For example our colleages in the Chelmsford office have a private rented sector that accounts for just 11% of their local property market.

So if there is a high proportion of rented property in Crawley does that mean it is harder to find a tenant or not enough tenants to fill the thousands of rental houses and flats.   In the lettings industry we have traditionally worked on the basis that 5% of the private rental portfolio will be “on the market” at any one time.  5% of the rental property around Crawley would be the equivalent of 406 properties.  I have just checked the Rightmove website & it is listing just over half that amount at 225.  From experience I know that a good proportion of those properties will already be let to subject to contract whilst the new tenants are being referenced.  In reality the figure could be 50% lower than the 225 properties listed on the portal.

Is the Crawley rental market booming?  If only 100 of the eight thousand rental properties are available to let it would suggest demand is incredibly high and could explain why Crawley is a firm favourite for investment landlords.

House values in Holder Road, Maidenbower rose by £355 a week

I was discussing the property market with one of my landlords who had purchased a property in Holder Road, Maidenbower in 2006 before the big crash.  It came up because a neighbouring house has come on the market this week at a price 34% higher than her investment.  In actual pounds - £64,000 higher, not bad considering the value dropped substantially in the years following the purchase.  The recovery has been long and the headline increase is only recent, figures from the internet tools show the value of property in Holder Road has risen by an average of £355 a week but only in the last 12 months. 

As a rental agent I’m interested in the investment potential & whether the property will pay its way.  I checked the records since 2006, 4 tenancies, a rent increase on each and a total void period of 21 days in 8 years.  The rental yield started at 5.4% in 2006 and the current marketed price has dropped the yield to just less than 5% but with a 34% capital appreciation & negligible voids the house is still to be considered as a solid investment.  I am pleased for my landlord, she bought a great house that has always had great tenants and proved to be a great investment.     

Central Crawley Apartment with 6.2% Yield

When the old Crawley swimming pool and sports centre was demolished who knew the area would be transformed into one of Crawley’s most sought after developments for rental property.  I have seen this 2 bedroom apartment come on to the market with Mansell McTaggart at a price that would make it a great investment.

 http://www.rightmove.co.uk/property-for-sale/property-44765996.html#

I believe it is the location of the development that fuels the great demand for these apartments, they are within walking distance of Crawley town centre, Crawley train station and Three Bridges train station with its direct trains to London Victoria & London Bridge.  Not forgetting that underground parking and ensuite bathrooms also score highly on tenants wish lists.

Finding a tenant at the rental value of just under £1000 per month is the easy part, perhaps more difficult is actually purchasing the property at the advertised price of £190,000 to achieve the rental yield of 6.2%.

Will it get harder to find a property deal in Crawley?

Landlords, investors & anyone looking for their next home are always on the lookout for property bargains but will they be harder to find in Crawley.  The recent announcement that £443million is to invested in the Gatwick Diamond area with Crawley at its heart should surely increase the pressure on the housing in the local area. 

Popular investment properties are the 1 bedroom maisonettes in Southbrook, Tollgate Hill, last year they were selling at £125,000 but ten years ago they were being sold at £89,500, that’s a 39% increase in value.  Despite the recession and housing “crash” anyone who had invested in one of these great little properties has seen the value increase by 39% through it all.  Popular with airport staff because of the direct FastWay routes to both terminals the rents have risen by 30% during the same period.

Gatwick currently employs 23,500 staff actually on the airport, who knows what this will climb to if Gatwick gets its wish for the 2nd runway in 2019.  The 3 bedroom family houses in Southgate Drive, Crawley could be bought for £165,000 in 2004 – the latest sale this year was at £227,500 – an increase of 37%.  Based on the past ten years data and looking at the possibilities for the investment in the Crawley area and what could happen with the 2^nd runway at Gatwick it could be that any property deal in the area will turn out to be a good deal.

Investment Opportunity - Tilgate

Yield or capital appreciation – which is better?  Why not go for both.  I have seen this great little maisonette come on to the market with local agent Homes Partnership in the Tilgate area of Crawley.

http://www.rightmove.co.uk/property-for-sale/property-44746693.html

Having checked through the data these properties were being sold for £130,000 in 2006, today’s marketing price represents a 30% increase in capital value.  When they come up for let they have always proved popular, the last one rented at £850 per month which at today’s price is a 6% yield.

Famed for its park, nature centre and lake, the Tilgate area of Crawley is favoured by young families because of the access to schools and the extensive leisure facilities.