Perfect Pound Hill Pad

Every town has its favoured neighbourhoods and Pound Hill is a contender for Crawley's most sought after.  Easy access to the M23 junction 10 and the mainline railway station at Three Bridges make it ideal for commuters.  The highly rated schools in Pound Hill and neighbouring Three Bridges ensure property is in high demand and prices are high.    

Chepstow Close, Pound Hill

Shillan, the Pound Hill based agent have just listed this one bedroom maisonette in Chepstow Close, Pound Hill.

http://www.rightmove.co.uk/property-for-sale/property-40107930.html

Having its own outside space and allocated parking will tick the boxes of many prospective tenants and help achieve the higher end of the rental price guide of £825 per calendar month.  The property looks to be in "move in" condition that will appeal to property investors looking to achieve a quick let.  Over the last ten years the property value and the rent have both increased at the same pace, both are showing a 30% increase compared to the 2006 levels.

Property prices have certainly moved upwards over the past 24 months but investing in good quality properties in sought after areas will ensure they remain tenanted with good quality tenants whatever happens to the housing market.  One bedroom properties with gardens have a wide appeal to young singles or couples but would also appeal to older tenants looking for a long term rental.

If you have any questions on this or any other residential property investment in the Crawley area you are welcome to contact me for advice.

5,386 Crawley Homes bought by private landlords in the last 20 years – Is this the end for first time buyers?

5,386 Crawley Homes bought by private landlords in the last 20 years – Is this the end for first time buyers?

 

It’s been a while since my last blog post, rents have rocketed, house prices have rocketed, the government has increased taxes to landlords and landlords are now doing the job of immigration officers.

We’ve been mulling over the changes in the office and I thought I’d I would share with you that conversation, my Crawley property Blog reading friends. People are always going to need a roof over their heads and somewhere to live will never go out of fashion – it’s a necessity for every single person. The 22 to 30 year olds of the town have a choice to what type of roof they have ... they rent from the Council, they can rent from a private landlord or finally they can get a mortgage and buy one. In the 1970’s/80’s and 90’s, the expected thing was to save like mad for two years for the deposit (going without luxuries) whilst living at home or renting a cheap two up two down, then buy your first house. However, more recently fewer Crawley youngsters have been buying, choosing to rent instead – mainly from private landlords (as Councils have been selling off council housing on the Right to Buy Schemes). The numbers are truly staggering ... and I want to share them with you.

Roll the clock back 20 years and Crawley was a different place. There were 35,201 households in Crawley and 20,631 of those were owner occupied. Move to the present, and with all the building in the town, the total number of households has increased by 21.9% to 42,925 and quite surprising (to me at least), the number of owner-occupiers has increased to 25,303 (although as a proportion, it is only 58.9% compared to 58.6% twenty years ago).

However, it’s rented sector that is truly fascinating … twenty years ago, only 1,535 properties were privately rented in Crawley ... and now its 6,921, a rise of 5,386.

The twentysomethings of Crawley housing difficulties haven’t been helped by the local authority selling off council housing, with the number of council houses dropping from 10,320 to 7,950 over the same twenty-year period. Demand for decent rented property remains high, as Cameron’s much vaunted house building program is years away and has decades of under investment to catch up on before it starts to affect demand. Even with the Buy to Let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing the people of Crawley and those who educate themselves and treat it as a business will survive and prosper.

 

Maidenbower, Crawley - Popular with landlords, sought after by Tenants

The best way Crawley landlords can protect their income from property (and mitigate the affects of the tax rises) is to keep the homes they let out in Grade A condition. I have found, especially over the last three or four years, Crawley tenants have ever growing demands from their rental property, but many are prepared to pay ‘top dollar‘ for houses and apartments that meet their high expectations. You must not forget, letting property in Crawley (in fact anywhere) is a business, so all private landlords should also seek the advice, opinion and commentary of property professionals.

What of the news of Stamp Duty changes for Landlords coming in April?  My thoughts are with such low supply (i.e. numbers of property for sale), and high demand it is hard to imagine Crawley property values will see much impact – but I predict, ever so slightly, the proportion of owner occupiers should increase slightly compared to buy to let landlords in the coming decade as the the housing market should return to balance. For any help or advice you can reach me and my team at the Martin & Co office in Crawley.

6% Yield in Wonderful West Green

Cheviot Close, West Green, Crawley

With rental prices shooting ever upwards but sales prices seeming to stall how about this one bedroom maisonette in the West Green area of Crawley.  Currently marketed by new agent Blakemore & Sons it would make the ideal first investment purchase with a possible 6% yield.

http://www.rightmove.co.uk/property-for-sale/property-50483752.html?premiumA=true

Summer is traditionally a quieter time for the sales market.  However it does make it a good time to buy before the prices start increasing again when the market heats up after the holidays.

This property in Cheviot Close is not the biggest one bedroom property in Crawley but would make the perfect home for an individual or young couple because the maisonette is located reasonably close to the town centre and very close to Crawley Hospital.  The rents on one bedroom properties currently are nudging up to £795 per month and if achieved would result in a yield of 6%.  Looking back ten years these properties were selling at £128,000 and therefore have enjoyed a capital increase of 30%. 

If you have seen any properties that interest you & would like a rental agents thoughts you are welcome to contact me at the Martin & Co office on Orchard Street, Crawley Town Centre.

St Peters Church, West Green, Crawley

Burbeach Close, Bewbush outperforms Sissinghurst Close, Pound Hill by 22%

I was talking with a new landlord at depth about her first investment purchase in Crawley and how far her money could stretch.  She had read the Martin & Co Intellligence Report & was interested to find out that over 50% of the total demand was for 2 bedroom properties.  By taking into consideration the rent band of £750 to £1000 being the most popular I wanted to show her what I thought could be the perfect property investment.  

Sissinghurst Close is located in Pound Hill, the most sought after neighbourhood in Crawley.  The road has a mixture of 2,3 & 4 bedroom houses with easy access to good schools, local amenities and the mainline railway station at Three Bridges.  We have just rented a lovely little 2 bedroom mid-terrace  house with a parking space for £975pcm.  Based on the latest sold price of £229,950 (2014) it has achieved a gross yield of 5.08%.  I checked land registry and one of these houses sold in 2004 for £165,000 which means a captal increase of 39.36% over the decade.

2 Bedroom Houses Account for Over 50% of Demand

I wanted to demonstrate that you could achieve the same capital growth and a great yield but put down a smaller deposit.  As a comparison I used another 2 bedroom house we have let recently in Burbeach Close, Bewbush.  Again its a mid-terrace house with a parking space but Bewbush is not so highly sort after.  There is a higher concentration of local authority housing nearby and the area is much further away from the railway station.  The house let for the lower price of £925pcm but the latest sold price for a two bedroom house in Burbeach Close was £180,000 in 2014 meaning that it has achieved a much higher yield of 6.2%.  In effect the gross yield of the house in Bewbush is 22% higher than the gross yield of the house in Pound Hill.  Ten years ago the Bewbush houses were selling for £130,000, their capital growth has been 38.46% over the decade – not that far behind the Pound hill house and comfortably close to the Southern Counties region average of 40.4%.

For investors using a 70% loan to value mortgage the house in Bewbush would need a deposit £14985 lower than the Pound Hill house.

 

If you would like to receive a copy of the Martin & Co Market Intelligence report or have any questions about property investment you can find me at the Martin & Co office on Orchard Street in Crawley.

Gossops Green is Great for long term tenancies

Any landlord looking for a long term investment would be wise to look at the potential of the three bedroom house in the Gossops Green area of Crawley.   It is being marketed with local agent Northwood at a guide price of £240,000.

http://www.rightmove.co.uk/property-for-sale/property-47664386.html

Gossops Green is one of those “middle of the market areas” of the town.  It is close to the railway station at Ifield but has never achieved the commuter status of the neighbourhoods on the east side of Crawley.  However – what it does do well is attract long term tenancies.  The average length of the tenancies in the properties I rent in the surrounding roads is in excess of 5 years.  These are family homes in an area popular with families with school age children.  The schools in Bewbush, Ifield and Gossops Green are easily accesible as well as Ifield Community College and St Wilfrids Catholic Scholl for the older children,   The current rental prices of £1100 per calendar month will result in a gross yield of 5.5% and with the average capital gain of 40% over the last 10 years it could make a solid investment.

Gossops Green Family Home

  

Perfect Pound Hill Investment

Investors need to hurry to add this little gem to their portfolio.  This compact 2 bedroom house is being marketed for sale with Astons Estate Agents this week and I know if I marketed it for tenants I could let it ten times over.

http://www.rightmove.co.uk/property-for-sale/property-47111437.html

We have just let the house opposite at £975pcm per month.  We let the house within 24 hours of being marketed and at the full asking price.   Pound Hill is thought of as the premier neighbourhood and properties there are always in great demand.  Figures from the Martin & Co intelligence report show that 1 and 2 bedroom properties account for 69.4% of the demand.  If purchased at the guide price the yield would be just above the magic 5% and tenancies in this road average 2.5 years.  Long term investors would be interested to know the capital growth has been 30% over the last ten years.

If you are considering a buy to let purchase you are welcome to contact me at the Martin & Co Crawley office for assistance & advice on the local rental market.

LET first viewing

Crawley Landlords Enjoy Capital Growth

I have recently been speaking with a number of Crawley landlords about the importance of a balanced portfolio of rental property.  Mortgage lenders will always concentrate on the monthly returns and aim for high yields but with property prices in Sussex increasing faster than the national average landlords must not forget capital growth as the reason for their investment.   

A 2 bedroom house we recently let in Golding Close, Maidenbower was rented at £1100 per month.  The house is currently valued at £285,000 which would only give a yield of 4.6% if purchased and let out today.  However the current landlords bought the property in 2010 for £221,000 and if the current valuation is correct they have enjoyed a capital growth of 30%, outstripping any return from bank or building society.   

Whether you are a first time investor or experienced landlord and considering your next buy to let purchase contact me in our Crawley office for advice on the local market.