Investors paid 23.75p per share in the New Listing for this property, and it became available on the Resale market November 12th 2015.
Sitting at the heart of Romford’s up-and-coming town centre - this is a particularly attractive modern flat, with a stream running through the gardens.
We believe that this flat and the area of Romford have a compelling investment case, which is underpinned by three 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 the end of 2020. This property is 1km away, but should still derive significant benefit.
- Romford is at the border between London & East Anglia. Knight Frank forecast capital growth, over the next five years, of +25.8% for London and +22.2% for East Anglia. These two regions are selected by their highly-regarded research team as two of the four fastest-growing.
- This property is notably well-located, being a short distance from two shopping centres and Romford's town centre.
You can read more on the investment case, here.
Property Partner does not provide advice and nothing in this Overview should be construed as investment or tax advice. The information which appears in this Overview is for general information purposes only and does not constitute specific advice.
The flat was acquired vacant and in good condition. The Chartered Surveyor’s report identifies no issues. We have made a precautionary provision of £1,500 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 £13,800 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8% and have not included any growth in rental values.
This level of rent equates to a Gross Rental Yield of 4.47%, and a forecast Dividend Yield of 2.72% (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.
We haven’t included any growth in rental values in our forecasts, which is simply a precaution. However, it is worth noting that Savills forecast rental growth for London (excluding ‘prime’ central London markets) of 29.5% over the five years from January 2015.
This transaction was approved by our RICS qualified Director of Property.
A two bedroom flat with an open-plan living room and kitchen. The master bedroom has an ensuite bathroom and there is a separate family bathroom as well.
The property benefits from use of off-street parking, and communal gardens with a small river through them at the rear of the property.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £6,395
- 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
- - £1,521
- Gross Rental Revenue
- = £12,279
- Gross Rental Yield
- - £4,644
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £7,635
- 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 4, Graveney Court, Romford, London, RM1 1EZ,