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.