Investors paid 23.13p per share in the New Listing for this property, and it became available on the Resale market May 6th 2015.
We believe that Hornchurch and this property have a compelling investment case underpinned by two factors:
- Gidea Park Crossrail station is due to open in the area in 2018. Crossrail is currently Europe’s largest infrastructure project and JLL, in their report on Crossrail investment opportunities, forecast the area around the station, which includes our property, to see +43% capital growth through to the end of 2020.
- Our Hornchurch property is notably well-located, within a short distance of two shopping centres and just 750m from Gidea Park station. A recent Knight Frank survey concludes that 91% of London tenants want to live within 1km of a transport link: this should be a highly desirable rental property.
Read more detail on the investment case here.
Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice.
The flat was acquired vacant and in good condition. The Chartered Surveyor’s Report recommended decoration (painting) in places previously affected by damp. We made a provision of £1,700 for furnishings, decoration and standard testing prior to letting.
The total rent forecast is £13,200 per annum. After accounting for building service charges payable to the Freeholder for block management, maintenance and insurance of the building, this equates to a Gross Rental Yield of 4.01% and a forecast Dividend Yield of 2.58% (fully accounting for purchase costs, furnishings, remedial cosmetic works, forecast maintenance, annual voids, corporate taxation and all fees). From April 2016 UK taxpayers are entitled to a £5,000 annual dividend allowance. See our FAQs here for more information.
Due to over performance against historic provisions, there is surplus cash within the SPV. This is being returned to investors through the dividend over the remainder of the 5 year term. In the "Financials" section below, under "Rental Income Breakdown", we have shown the impact of returning this cash as a negative number in the "Property Insurance" line (presentation within Property Insurance is a temporary measure whilst our platform is updated to add a new descriptor).
For prudence, we haven’t included any growth in rental values in our forecasts. However, it is worth noting that JLL forecast rental growth of +26.4% through to 2020, for the area around Gidea Park station.
This transaction was approved by our RICS qualified Director of Property.
A two-bedroom flat with a separate living room, master bedroom with ensuite shower, second bedroom and a family bathroom.
The flat has the benefit of off-street parking and direct access to the communal garden.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £9,799
- Latest Valuation
Note: The estimates provided do not constitute valuation advice; it remains your responsibility to determine valuation.
The HPI is an official statistic that captures changes in the value of residential properties across England and Wales. It is published by the Land Registry, which is a UK government organisation.
Note: Past performance is not a reliable indicator of future results.
Residential property investment is a total returns product. This information is the income component only. Increasing capital values have historically driven most of the return.
- Gross Rent per year (E)
- Service Charges
- - £1,560
- Gross Rental Revenue
- = £11,640
- Gross Rental Yield
- - £4,145
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £7,495
- Dividend Yield
Note: UK taxpayers are currently entitled to a £5,000 annual dividend allowance. This means that the total income related tax you pay is no greater than if you were to own the property directly. Gross rent and dividends may be lower than estimated. Tax treatment depends on individual circumstances and may be subject to change in future. See FAQs for more information on taxation. The Dividend Yield assumes an investment at the Latest Valuation.
Flat 9, Woodgate Court, Gidea Park, London, RM11 2EX,