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. 

6.4% Yield in Southgate

Achieving a yield of 6% is exciting news and this 1 bedroom maisonette in Southgate would make a perfect home for any tenant wanting to be close to the town centre and Crawley railway station. On the market with local agent Homes Partnership you can view the details by clicking here..

http://www.rightmove.co.uk/property-for-sale/property-52545422.html

The property is located in the sought after leafy suburb of Southgate that is adjacent to the centre of town but Tilgate Park and the K2 sports centre are also within easy reach.  The established location and stunningly large garden would appeal to an older tenant looking for a long term let.  A conservative rental estimate of £775pcm would give an impressive gross yield of 6.4%.  

If you are considering a buy to let investment you are welcome to call in to my Martin & Co office on Orchard Street or email me for local property advice.

One in Seven Crawley Homes Privately Rented

The UK is still a nation of homeowners but the trend in Crawley is changing.  The roots of the private rental sector appear in the 1980’s & 1990’s when council houses were sold off under the right to buy scheme.

Even though 27,583 households in Crawley were owner occupied in 2001 that number had decreased to 25,228 households by 2011, the percentage of homeowner properties in Crawley dropped drastically from 68.3% to 59%.  Why, because whilst an additional 2,345 properties were built in Crawley between 2001 and 2011, a lot of them were bought as buy to let investments, more than doubling the number of private rental properties in Crawley. In fact, the number of properties in Crawley that were privately rented jumped from 2,491 in 2001 to 6,214 in 2011.

We have noticed more of the younger generation are renting, largely because they can‘t afford to buy - raising a deposit being the sticking point for most.  Adding to the demand for rented property are Gatwick workers needing temporary accommodation.

Crawley private rented homes accounted for 14.5% in the last census, up from only 6.16% at the previous census.  If the trend continues a third of all homes in Crawley could be privately rented in 2021.

With reports stating the rental market will continue to grow with high demand and limited supply in the Crawley area you may be considering buying a property for investment.  I am always happy to give you my considered opinion on which property to buy to give you what you want from your investment. If you are a landlord, new or old, I am happy for you to pick up the phone or visit me at our office on Orchard Street, Crawley.

Horsham Hot Spot

There was a time when Horsham was Number One on Kirstie & Phils best place to buy a property and investors should take a look at the new Horsham Gates development.  With one bedroom flats starting at £142,500 the development will offer an exciting investment potential.

http://www.rightmove.co.uk/new-homes-for-sale/property-48912196.html

The flats are literally just up the road from Horsham mainline station and with some trains to London Victoria taking only 54 minutes the properties will be in high demand from commuters.  Gatwick workers are well served too with a 22 minute commute and up to 7 trains an hour to the Airport railway station.  As with all new builds the properties are “compact” but being brand new and perfectly sited in the town they will attract a good rent.  Being a bit smaller these would probably rent for around the £750 a month, giving a yield of 6.3%.  Larger 1 bedroom flats in the development are being marketed at £185,000 and would rent at the higher figure of £850 but would still achieve a yield of over 5%.

A Little Different

I saw this little one bedroom house come on the market with our friends on Crawley High Street, Mansell McTaggart.  The house is quite quirky in that the bedroom is “gallery” style above the living area.  You can see the pictures & floorplan by clicking below.

http://www.rightmove.co.uk/property-for-sale/property-48522871.html

Quirky is all very well but would it make a good investment.  Another agent in town is currently advertising one of these houses at £875, it has been enlarged by the addition of a conservatory but there would be no harm advertising the house listed above at £800.  The house would score highly with most tenants because of its Pound Hill location, parking and private garden.  If purchased at the asking price & rented at £800 the gross yield is 5.4%.  However I did read somewhere the other day that 75% of sold properties were not achieving their initial asking price so there could be room to improve the yield even further.