Investors paid 35.37p per share in the New Listing for this property, and it became available on the Resale market December 23rd 2015.
Our first purchase in Acton, a two-bedroom top floor flat in an attractive red brick block. The area already benefits from an exceptional array of transport links and is only set to improve with the addition of Crossrail and potentially HS2.
We believe that Acton and this property have a compelling investment case, underpinned by three factors:
- Crossrail will start running from Acton Main Line station in 2019. JLL forecasts property price growth of +48% between the end of 2014 and 2020 for properties within 750m of Acton Main Line station. Our property is just 530m from the station.
- Acton is extremely well connected being on the Central, Piccadilly and District Underground lines, as well as London Overground and National Rail. It is also close to the A40, which gives access to central London, Oxford and the Midlands. This is in addition to the fact that the area will soon be a Crossrail location and, potentially, home to an HS2 terminal if plans are agreed.
- Acton benefits from its proximity to local amenities, including Westfield London (one of Europe’s largest shopping centres), Imperial College and a Hammersmith Hospital, which is a major employment hub in the area.
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 recently refurbished. The Chartered Surveyor’s report identifies no material issues. We have made a precautionary provision of £3,000 for tests that are required and any remedial works that the testing reveals, as well as a £5,000 contingency for window replacement. There is also a provision of £1,200 for furnishings.
The total rent forecast is £16,200 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.
At the current level of rent, Gross Rental Yield would be 4.13% and the Forecast Dividend Yield 2.48% (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 JLL forecasts rental growth of +35% through to 2020, for the area around Acton Main Line station.
This transaction was approved by our RICS qualified Director of Property.
This two-bedroom flat has a separate kitchen and reception room, master bedroom with its own bathroom and another spacious double bedroom with a walk-in wardrobe.
The flat has the benefit of off-street parking.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £3,059
- 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
- - £1,080
- Gross Rental Revenue
- = £15,120
- Gross Rental Yield
- - £5,585
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £9,535
- 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 27, Cotton Avenue, Acton, London, W3 6YE,