Investors paid 25.74p per share in the New Listing for this property, and it became available on the Resale market July 28th 2015.
We believe that this flat and the area of Romford have a compelling investment case, which is underpinned by two factors:
- A Crossrail station is due to open in Romford in 2018. Crossrail is currently Europe’s largest infrastructure project, and JLL have forecast +43% capital growth within a 750m radius of Romford station through to 2020. Our property is within this area only 560m from the station.
- This property is right in the centre of town, within easy walking distance of two shopping centres and the railway station. A recent Knight Frank survey concludes that 91% of London tenants want to live within 1km of a transport link, so this should be an attractive rental property.
You can read more 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.
This property was acquired via ‘private treaty’ (normal sales process). Contracts were exchanged on July 7th and purchase completed on July 28th 2015.
The flat was acquired in good condition. The Chartered Surveyor’s report identifies no issues. We have made a precautionary provision of £1,000 for tests that are required and any remedial works that the testing reveals. There is also a provision of £1,200 for furnishings.
The total rent forecast is £14,100 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8%. After accounting for building service charges payable to the Freeholder for block management, maintenance and insurance of the building, the current level of rent implies a Gross Rental Yield of 4.34% and a forecast Dividend Yield of 2.60% (the latter accounts 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.
We haven’t included any growth in rental values in our forecasts, which is simply a precaution. However, it is worth noting that JLL forecast rental growth of +34% from the end of 2014 through to the end of 2020, for the area around Romford station.
This transaction was approved by our RICS qualified Director of Property.
A two-bedroom flat on the 6th floor, with an open-plan kitchen and living room. One of the bedrooms has an en-suite shower room, and there is a separate family bathroom. There is also a balcony from the kitchen/living room area.
The property benefits from allocated off-street parking in a semi-underground carpark.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £3,768
- 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
- - £1,950
- Gross Rental Revenue
- = £12,150
- Gross Rental Yield
- - £4,670
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £7,480
- 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 22, Rubicon Court, Romford, London, RM1 1BJ,