Romford, RM3 0WR | Investment Property for Sale | VES-RM3-001

Opportunity to purchase an apartment in Romford, London generating £10,200 rent pa and a gross yield of 4.5%

£225,000

Apartment

VES-RM3-001

INITIAL INVESTMENT

£102,000

GROSS RENT / YIELD

£10,200 / 4.5%

NET RENT / YIELD

£7,508 / 3.3%

The property

TENANCY

Tenanted

TENURE

Leasehold

GROUND RENT

£25

SERVICE CHARGE

£221

1 bedroom

1 bathroom

1 reception room

420

Unfurnished

Leasehold information

Length of lease: 125 years from 1998

The listings particulars haven't yet been reviewed by the vendor and are therefore not final.

Market Trends

Sales Trends

  • Prices in RM3 have increased 37.28% over the last 5 years (0% over the last 12 months) and are £320k which varies by property type (£202k for a 1-bed flat to £774k for a 5-bed detached property).

  • On average, there have been 52 properties sold per month in the area in the last 12 months.

Rental Trends

  • Rents in RM3 are now at £1,240 per month (-1% over the last 12 month).

  • On average, there have been 23 properties listed for rent per month in the area in the last 12 months.

  • Given prices in the area, gross yield is currently 4.9% which is 0.2% higher than the national average of 4.7%.

  • This property is currently achieving a gross yield of 4.5% which 9% lower than the area.

Source: REalyse - 26/03/2019

Tenancy

RENT

£10,200 p.a. / £850 pcm

TENANCY DEPOSIT

£1,050

TENANCY TYPE

AST

TENANCY AGREEMENT STARTED

19 months ago

TENANCY AGREEMENT ENDS

Periodic

Floorplans

Documents available on request, please contact for viewings or further questions.

The information relating to the property is supplied by the vendor and the latest available at the date of listing.

Certain information may expire or become inaccurate over time and should be verified by the purchaser’s solicitor.

Financials

Rental Income

GROSS RENT PER ANNUM

£10,200

Equivalent of £850 per calendar month (PCM).

GROSS RENTAL YIELD

4.5%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£7,508

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

3.3%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£2,692

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

This information is for illustration purposes only and does not constitute advice. It is correct at the time of writing. For advice specific to your personal circumstances, please speak to a financial adviser.

About Borough of Havering, East London

The borough is within the London Riverside Opportunity Area, which is a regeneration scheme that will transform previous brown belt sites along the Thames; Romford, Gidea Park and Harold Wood will be connected to the Elizabeth line in 2019; green spaces are great for families.

  • Romford is the principal town of the London Borough of Havering in East London and forms part of Outer London. Other communities include Hornchurch, Upminster and Rainham.
  • Considered one of the ‘up and coming’ places to live and raise a family in Outer London.
  • Gaining popularity as a commuter town, just 12 miles east from the City of London, Romford is an attractive option that is only going to continue incentivising buyers and renters once Crossrail is fully functional.
  • Romford is a currently a major retail and leisure destination and is one of London’s Metropolitan Centres.
  • The south the borough extends into the London Riverside redevelopment area of the Thames Gateway.

Property

  • Havering has approximately 108,837 dwellings, and with the Elizabeth line stop in Romford, there are plans for thousands of new homes in the Borough and Romford itself is getting £35 million investment around the riverside.
  • House prices stand at £376k and have grown steadily year on year increasing by 1% in the last 12 months (+40% growth since Jan 2015). On average, there has been 266 sales per month over the last 12 months (98 sales recorded in Jan 2019 versus 269 in Jan 2018).
  • Rents have stayed flat over the last 12 months at £1,230 but have grown +15% since Jan 2015; albeit not at the pace of house prices. On average there have been 139 rental listings each month over the last 12 months (173 in Jan 2019).
  • Buyassocation.co.uk projects that the next 5 years will see a further 22% growth in property prices and rental growth of 16%.
  • Simply Business’ ranked Romford 6th for rental price increase in their buy-to-let index, which is compiled using data from the Land Registry and Zoopla.

Population

  • The population of Havering is estimated at 256,000 which has increased 11% over the last 10 years (versus 229,800 in 2007).
  • 62% of the population is working age (between the ages of 16-64) versus 67% in London.
  • Havering is projected to increase a further 12.8%, higher than the expected Greater London projections (+12%) over the next few years to mid-2024.

Businesses

  • Romford is one of the top 15 retail centres’ in the South East, currently attracting more than 25 million visitors each year.
  • There 9,690 enterprises located in Havering, of which 98.5% are small, employing less than 50 people.
  • Since 2010, the number of local businesses has grown by 44% (+2,945).

Schools

  • Primaries: among many good, St Peter’s Catholic, Ardleigh Green, Broadford, St Ursula’s Catholic and Nelmes “outstanding”.
  • Secondaries: Frances Bardsley Academy for Girls, The Royal Liberty (boys), The Campion (Catholic), Drapers’ Academy and Redden Court are “good”.

Connectivity & Transport

  • Eight trains an hour into London Liverpool Street (17-31 mins)
  • The Elizabeth line will run to Paddington, and eventually Heathrow and Reading
  • The District line skirts south at Hornchurch and Upminster.
  • By road, its 15 minutes to the M25, and 30 minutes to the Dartford Crossing or M11.

The area ticks all of the boxes for renters looking for a home on the outskirts of the capital: it has a thriving nightlife scene, a growing business sector, a famous market, good schools, as well as excellent transport facilities. It is also ideal for those wanting to be in London whilst being closer to the Essex countryside; a short drive along the A12 will take you to the rural town of Brentwood, whilst the A127 will take you directly to the popular Essex beach, Southend-on-Sea.

Jacobs Avenue,

Romford,

Greater London,

England,

RM3 0WR

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