Investors paid 46.61p per share in the New Listing for this property, and it became available on the Resale market November 25th 2015.
This group of properties represents a first. Never before has crowdfunded property been offered with gearing in Europe. The potential for amplified returns through gearing, combined with the fact that the price of these properties are located in a Crossrail area, makes this an exceptional investment opportunity.
- The investment comprises three new-build properties and is geared at 50% loan-to-value (LTV) of the purchase price. Gearing gives enhanced exposure to property price movements, and the potential for amplified returns; though investors must note amplified negative returns if prices fall.
- We note that West Drayton’s average property values are below those of surrounding areas – such as Iver, Langley and Uxbridge. This provides an opportunity for capital growth as residents in nearby areas seek better value.
- This property is just 511m from West Drayton Crossrail station, which is due to open in 2019. JLL forecast that the properties located 750m from West Drayton station will experience +48% capital growth from the end of 2014 to the end of 2020.
- Our exit strategy is to sell the units individually rather than as a single investment, thereby realising the discount that we have secured from buying in bulk.
You can read more on the investment case for West Drayton here, and can download the developer's brochure for this Drayton Heights development 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 mortgage is being provided by a major high street bank and has a five-year fixed interest rate of 3.99%. Please refer to our blog post on geared property for further detail.
The investment comprises three new-build properties. We secured one unit off-plan directly from the developer and the other two from individuals that secured properties in the first phase release but later needed to pull out.
The total rent forecast for the 3 properties is £48,600 per annum. For prudence, we have factored into our forecasts an annual void rate of 3.8% for prudence.
At this level of rent, the forecast Dividend Yield is 2.08% (fully accounting for and after mortgage interest payments, purchase costs, furnishings, 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% through to 2020, for the area around West Drayton station.
This transaction was approved by our RICS qualified Director of Property.
Flat 2 is a two bedroom flat on the ground floor, with an open-plan kitchen and living room. There is also a family bathroom.
Flat 17 and 19 are both two bedroom flats on the first floor, with an open-plan kitchen and living room. The family bedrooms have an en-suite shower room, in addition to a separate family bathroom.
Each flat benefits from the right to park. In addition, there is a communal roof terrace.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- - £446,925
- Deferred Tax
- - £13,931
- 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
- - £5,250
- Gross Rental Revenue
- = £43,350
- Gross Rental Yield
- - £31,462
- Annual Interest Payment
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £11,888
- 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.
2, 17, 19 Garden Court, West Drayton, London, UB7 7JS,