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.