Investment Opportunity in Northgate

Everyone knows location is key & I saw this come on to the market with my neighbouring agent, Zoom995.

http://www.rightmove.co.uk/property-for-sale/property-31061076.html 

This two bedroom house is located within a short walk of the Manor Royal Industrial Estate and has the added benefit of being close to a Fastway bus stop for a quick commute to Gatwick Airport.  We always have a strong demand for property for workers coming in to the area to work at Gatwick or one of the companies based at Manor Royal.  The rental valuation of £900per month would give a yield of a smidgeon over 5% but that doesn’t reflect the demand I would expect it to get because of its location.  However, no need to worry if it attracts a tenant who drives to work – they’ll benefit from the garage included in the sale.

Are ex-council flats a good investment - we think so

I remember the initial meeting with a landlord who was nervous about his first buy to let purchase.  A 2 bedroom top floor flat in a council built & council run block in Sunnymead, close to Crawley town centre.  It was one of the original 1950’s blocks built by the new town commission and the flat had good sized rooms and a balcony.  It had been well looked after and the previous owner had installed a new kitchen.  As one prospective tenant put it – “I was a bit unsure from the outside but once through the door it was lovely and really handy for town”.

The purchase price was £137,000 in 2006 and the value climbed, a similar flat sold for £145,000 in 2007 but then the crash came.  However with a rental income of £800 per month the yield was 7.01%.  The market crashed, bank base rate plummeted to 0.5%, money in the bank earned almost nothing but this landlord was getting 7.01% on his investment, 2 years ago that increased to 7.33% when the rent increased to £825 per month.

My landlord still has his flat, it is still tenanted, he is still getting a great yield.  There haven’t been any recent sales in the road but as property prices have been increasing across Crawley I’m sure my landlords flat is back to its 2006 purchase price and may have even risen beyond the ceiling price the flats achieved in 2007.

Investing in Ifield

How about an investment in the Ifield area of Crawley this Monday morning?  Andrew Hunt is listing this 2 bedroom flat in Ifield, close to the neighbourhood centre.

http://www.rightmove.co.uk/property-for-sale/property-30971829.html 

Construction of the estate by the new town development corporation started in 1954 to expand Ifield village into a Crawley neighbourhood.  The location is popular because it retained its own railway station that links directly to Gatwick & London Victoria to the north and Horsham to the south.  We would market this property at £825 per month which if achieved, would give a yield of 6.1%.  The capital growth in this part of town has not been too bad either – 19.53% over the last five years to be precise.

If you have a seen a property that you are considering investing in – get in touch, I will happily give my opinion on the property.   

Maidenbower - Are the properties a good investment?

We always get asked by new landlords and investors for our opinions on which is the best area in Crawley for property investment.  Many of them already know that Maidenbower is one of the most sought after neighbourhoods but are put off by the high price of the property.

This 2 bedroom house in Stirling Close, Maidenbower was sold this week at £230,000.  It is tenanted at £950pcm which gives a gross yield of 4.9%, just short of the magic 5% that some landlords consider their minimum.  There are higher yields to be had in Crawley but yield is not the only consideration. 

For a little bit of Friday fun I checked the rental history of this property and discovered that in the last 11 years there have been 4 changes of tenant but the total of all the void periods came to only 19 days.  A property in a highly sought after area like Maidenbower will have a higher purchase price but it is likely there will also be an increased tenant demand.  There aren’t many landlords who can say they only lost 19 days rent in the last eleven years.     

Broadfield Investment Opportunity

On my routine search of Zoopla I came across this great property in Seaford Road, Broadfield

http://www.zoopla.co.uk/for-sale/details/33541256

With gardens, garages and good sized rooms the houses in Seaford Road are popular with families.  We already rent a number of these houses, the last one let at £975.00 per month which would give a 6% yield which is outstanding for a larger property.

Property Focus West Green

I have built up an extensive database of every property sale in Crawley since the early 2000’s so are able to give an objective and unbiased opinion on what (and what doesn’t) make a good property deal/investment.  Knowing what is and what has happened to the property market in Crawley, compared to say Horsham or Horley, enables me to spot any trends or opportunities for landlords.

I lived in the West Green area of Crawley for over 10 years and I take a keen interest in the property market in my old neighbourhood.  The mixture of new town housing and Victorian terraces close to the town centre make it a desirable area of Crawley.  Here are some bargains that I spotted at the time, and now they have completed, I wanted to share with you. 

A 3 bedroom house in St Johns Road, West Green sold in May 2011 for £182,500 but less than 3 years later in January 2014 sold for £235,000.  That’s a 28.77% increase in total value but if you break it down that’s 9.69% per year, more than any interest rate paid by the banks.  Would it have made a good rental property I hear you ask, the answer is yes.  In 2012 we rented a similar 3 bedroom house in Albany Road, West Green for £950 per month, assuming the same rent that would give a yield of over 6%.

I saw a similar property in Town Barn Road, near to Crawley Hospital that sold in October 2011 for £204,000 but went on to sell for £247,000 in April of this year, 2014.  That’s an increase in value of 21.08% in just 2 and a half years.

Property is my business, whether I lived in the neighbourhood or not we will guide you on what you should be looking for in your next investment purchase.  We do not charge for advice and you are welcome to call in to our offices or email us for our opinion.