Investors paid 37.11p per share in the New Listing for this property, and it became available on the Resale market August 27th 2015.
5 Scholars Way is a particularly attractive and well-fitted property. Ideally located within a short distance of Gidea Park and Romford, it also benefits from the transport links and the amenities of both areas.
We believe that this house and the area of Gidea Park have a compelling investment case, which is underpinned by three factors:
- Gidea Park Crossrail station is due to open in the area in 2018. Crossrail is currently Europe’s largest construction project and JLL, in their report on Crossrail investment opportunities, forecast the area around the station to see +43% capital growth over the next 5 years.
- Gidea Park is at the border between London & East Anglia. The highly-regarded research team at Knight Frank forecast that these two regions will be among the fastest-growing in the country over the next 5 years, and Gidea Park is ideally-placed to benefit.
- This property is notably well-located, being a short distance from two shopping centres, within 750m from the station, and just over 1km to Romford’s town centre. A recent Knight Frank survey concludes that 91% of London tenants want to live within 1km of a transport link, so this property should prove highly desirable in the rental market.
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 house was acquired vacant and in good condition. The Chartered Surveyor’s report identifies no issues. We have made a precautionary provision of £2,000 for tests that are required and any remedial works that the testing reveals. There is also a provision of £1,800 for furnishings.
The total rent forecast is £18,000 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8%.
At this level of rent, this equates to a Gross Rental Yield of 4.24% and a forecast Dividend Yield of 2.61% (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, JLL forecast rental growth of +26.4% from the end of 2014 through to the end of 2020 for the area within 750m of Gidea Park Crossrail station.
This transaction was approved by our RICS qualified Director of Property.
A two storey semi-detached house, with a kitchen, living room and WC on the ground floor.
Upstairs, there are three bedrooms and a family shower room.The property includes a rear garden.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £9,124
- 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
- - £0
- Gross Rental Revenue
- = £18,000
- Gross Rental Yield
- - £6,648
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £11,352
- 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.
5 Scholars Way, Romford, London, RM2 5US,