Investors paid 16.77p per share in the New Listing for this property, and it became available on the Resale market June 5th 2015.
We believe that Romford and this property have a compelling investment case 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, in their report on Crossrail investment opportunities, forecast Romford to see +43% capital growth through to the end of 2020.
- This property is notably well-located. It is in the centre of town, within easy walking distance of two shopping centres and 400m from the 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.
Contracts were exchanged on May 15th and purchase completed on June 12th 2015.
The flat was acquired in good condition. The Chartered Surveyor’s Report did not highlight any issues that require structural work or maintenance expenditure. However, from our own inspection, we noted minor points that we would like to address over the coming years. In addition, the property has a low energy efficiency rating. Accordingly, we will take prudent measures, over the next few years, to improve the energy efficiency rating. We have made a provision of £3,200 for these measures and for the minor works that we noted.
The total rent forecast is £10,200 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 4.77% and a forecast Dividend Yield of 2.92% (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.
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 +34% from the end of 2014 through to 2020, for the area around Romford station.
This transaction was approved by our RICS qualified Director of Property.
A one-bedroom first-floor flat with a separate living room, kitchen and bathroom.
The flat has the benefit of an allocated off-street parking bay and communal gardens to 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
- - £4,877
- 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
- - £900
- Gross Rental Revenue
- = £9,300
- Gross Rental Yield
- - £3,474
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £5,826
- 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, Richmond Court, Romford, London, RM1 2DX,