Hello there, Hounslow Property buyers
I don’t normally post properties that we have on, but if I saw this with another agent and not with us then I would write about it so here we go…
So we have been successful in taking on this property in the Heart of Hounslow.
Why do I think this is a good buy?
Well have a look at the location! then have a look at the regeneration plan for the surrounding area of this flat. CLICK HERE TO SEE
At £325,000 (for which the flat we are selling is on for) your getting a flat bang in the middle of town which will soon be surrounded by a brand new shopping complex.
This will only enhance to the future value of this flat & properties in general in the surrounding areas.
Its within a secured building, service charge are not that high compared to some other the other flats – and whether your buying as a first time buy or a Buy to Let this flat in our opinion is a good buy.
As a buy to let investor
Yes it may mean you have to put down a bigger deposit to satisfy the the Price to rent ratio criteria – but with the average rent for a 2 bed being £1400 + pcm that give you a rental yield of 5.1 + % gross rental yield.
but don’t forget the potential capital uplift.
According to the Rightmove SOLD prices data
You can see that in the year 2014 – 2 bed flats were being SOLD at the market value back then of around £230,000 – £240,000
In 2016/17 similar flats are being sold for £340,000 to £350,000
According to my calculation that’s a circa 40%+ uplift of the capital value. Which is an approximate 3.6% per annum increase of capital value over the last 12 years.
So if we anticipate a similar increase over the next 10 years and then add that to your rental yield, you will get an overall annualised rate of 8.7%.
Even if we think the growth rate is going to be lower than 3% – lets say 1.5% that’s still an annualised return of 6.6% – which is still good in today’s market.
As a first time buyer
Your best buy will be a property with positive future uplift on the capital value, WHY? well that means in a few years when you feel you need a bigger place you can either remortgage or sell your first property to help you fund your next purchase.
Happy house hunting – until the next time.