TATE Residential - Estate Agents Battersea
London Estate Agents . Battersea . Nine Elms . Vauxhall . Chelsea . Pimlico . Clapham . Kennington

Investing

This is Just a fantastic time to invest?. But where?

Battersea – Nine Elms Lane SW8 and the surrounding area

From Battersea Park to Vauxhall Cross. This may be outside Gold Plated Central London but the Properties for Sale are surprisingly near.

Quoted by top flight Estate Agents as ‘The Area in London for Investment’. There have been generous forecasts of Residential Property doubling in value over the next 4 years. Hard to believe – not really when you look at what is going on.

Large Scale Development and Key Infrastructure Projects.

  • The Riverlight will launch this Spring (2013)
  • St Georges Development at Vauxhall Cross is nearly completed
  • The American Embassy will soon to be your neighbour
  • The 450 acre site of Battersea Power Station on the cusp of being developed

…And if that is not enough the proposed extension to the Northern Line giving two New Tube Stations for direct access to the City right on your doorstep.

If you want to invest in Property and you want to be in the forefront of breaking a new Area; look no more; you have found your place. Contact Tate Residential and we will help you do the rest.

The great thing about finding properties for sale Battersea is you have a great selection of properties to choose from…. ex-local flats through to multi-million pound penthouse suites for you to choose from – the choice is yours.

For those of you looking for High Income Yields and Significant Capital Appreciation there are Ex-local Authority Properties generating High Net Yields through strong rental demand at the Lower end of the market. These will generally be prefabricated properties of which the Council are still the Freeholder. Usually this is Wandsworth Council who make Great Freeholders and have been delivering value for Money for the Residents. Wandsworth Council have been investing in their stock so we believe there is a good Long Term future for these.

For those of you looking for Good capital Growth with the safety of a Medium Income Yield there are Red Brick Ex-local Authority Properties generating Solid Returns through strong rental demand at the middle of the market. Again often the Freeholder is Wandsworth Council. These range from 1950s build through to 1990s and offer a Middle of the Road Investment for the Conservative Investor.

For those of you looking for High Capital Growth over Income Yield the current Period Properties and New Build Apartments in the Area Such as Viridian will be the obvious winner from all of this development. Viridian is overlooking Battersea Power Station on Nine Elms Lane and likely to be around the corner from the proposed new Tube Stations.

What are our investors looking for?

An investment opportunity for the medium to long term that will service the overheads safely and produce good capital growth. Tate Residential provides you with the opportunity to do all this whilst removing the hassle and burden of management in an astute, knowledgeable and friendly manner.

Why?

  • To provide a good income or a capital sum for the future after sale.
  • To provide a tangible asset for sale when required

Contact Tate Residential, we are only a phone call away. We make a sale or let as simple as ABC… Tate Residential can manage everything for you from sourcing a ‘for sale’ property, to letting, managing and handling your exit sale for you.

The sale value of investment property, the rent achieved and mortgage repayments can go up as well as down. Investors must seek professional advice from an Independent Financial Advisor before entering into any contractual arrangement either for purchase or sale.

Notes on our worked example

A Stamp duty, Solicitors and surveyors fee on the sale purchase.
B Basic furniture has not been allowed for in the sale but if the property is let furnished this will be an extra cost.
C Fee for sourcing arranging and negotiating the purchase of the property (may not be applicable).
D Estimated cost of the works, if required, will be extra
E Fee for arranging and supervising the renovation, if required, will be extra.
F Building and contents insurance if applicable. Leasehold building insurance is part of the service charge.
G 1/2 the Tenancy Agreement Cost. The other 1/2 is paid for by the Tenant.
H This can be completely variable. This is therefore a provisional sum.
I Gross rental income less total running expenses
J Net Rental Income expressed as a percentage of the Total Purchase Cost
K Increase in capital value of the property as a percentage of the Total Purchase Cost
L Net income and capital appreciation as a percentage of the total cost of purchase
M 75% of the total purchase cost assumed borrowed.
N Repayment of interest only on the mortgage borrowed. Variable depending on lenders terms.
O Net Rental Income with Borrowings
P Net Rental Income expressed as a percentage of the Investor’s capital invested
Q Increase in Capital value of the property as a percentage of the Investor’s capital invested.
R Total net rental income and capital appreciation expressed as a percentage of the Investor’s capital invested.

All figures are for illustrative purposes only and exclude any allowance for void periods and repayment of capital. They are however based on a real property on rental yields and predicted capital growth over 2013/14.

The value of investment property for sale, the rent achieved and mortgage repayments can go up as well as down. Investors must seek professional advice from an Independent Financial Advisor before entering into any contractual arrangements for purchase or sale.

Worked Example

Purchase £330,000
A Duties and fees £12,000
B Furniture £0
C Acquisition fee £0
D Renovation cost £0
E Renovation fee £0
Total purchase cost £342,000
Investment return 2012/13
Weekly Rent £490
Annual rent £25,480
Gross return 7.45%
Expenses
F Insurance £0
Gas and electric tests £50
G Documentary costs £180
Letting fee@ 10% + VAT £3.058
Managing fee@ 5% + VAT £1,529
H Repairs say 4.0% £1,019
Service charges £700
Total running Expenses £6,536
I Net Rental Income £18,944
J Net Rental income Yield before tax 5.54%
K Capital appreciation 15.50%
L Total return before tax 21.04%
With borrowing 75%
M Mortgage borrowing £256,500
Net rental income before interest £18,944
N interest @ 3.49% £8,952
O Net rental income £9,992
P Net rental income yield before tax 11.69%
Q Capital appreciation 61.99%
R Total return before tax 73.67%