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Examples | Golden Roof Property Consultancy

Examples


 

INTRODUCTION

 

Here we list some sample properties from London and other parts of the UK, to show their investment performance since their last sale date. Nearly all the properties listed here have shown good or excellent growth and these results are typical of what can be achieved in London and other prestigious UK locations. However, we have deliberately chosen a few properties with less attractive investment performance, in order to demonstrate to readers that in the UK property market, like any in the world, strong growth is not guaranteed. At Golden Roof, it is our mission to ensure that your investment performs at or near the top end of the examples given here and definately to avoid the bottom end! Good growth is never guaranteed with any investment, but with careful selection and good advice, the chances of achieving it are far greater

 

 

 

Sample Property 1: 42 Egerton Crescent, Chelsea SW3

 

Location: Prime central London – Chelsea. Fashionable area of central London with world class shopping and dining facilities. Close to some of London’s most famous parks and open spaces. High quality private primary schools nearby. Strong international popularity.

 

 

Description: This is an estimated 250 square meter 4 bedroom, 3 bathroom house with substantial entertaining space spread over 4 different reception rooms. Unusually for such central London 18th century houses, it has an attractive and reasonably sized garden.

 

Last sale: £4,900,000 Last sale date: October 2002

 

 

Estimated current value: A property of similar size and on the same street is currently being marketed today at £12.5 million. The most recently sold house on this street of approximately similar size was 39 Egerton Crescent, SW3 for £10.5 million 1 April 2011. Our estimate of the current value of this property is therefore £11-12 millon

 

 

Estimated rental value and yield at purchase value: £350,000 per year; 7.1% yield

 

 

Capital appreciation: 145% over 9 years; 16.1% average annual appreciation

 

 

Combined annual yield: 23.24%

 

 

 

Investment Observations: This house will have provided a substantial profit for its owners over an approximately 9 year period, having more than doubled in value despite the economically difficult times between 2007-11. It shows the strength of Prime Central London for those who are wealthy enough to invest in houses in the area. The combined overall yield of 23.24% is excellent when one considers the rock-solid safety of this part of London as a property investment area

 

 

 

 

Sample Property 2: 66 Clonmore Street, Wandsworth SW18

 

 

Location: Southfields SW18. 1st tier/2nd tier London location popular with families and middle income professional London workers. Good transport links, some good local schools. Parks and open places nearby. Southfields village and Wimbledon town centres both close by with good quality shops and restaurants.

 

Description: This is a 135 square meter 5 bedroom, 2 bathroom, 2 reception property. Like most properties in the street, extra space has been created by converting the attic to provide an additional double bedroom and bathroom. The kitchen has also been extended at the back of the house. This is another popular type of extension as rear dining space overlooking the garden significantly boosts the value of the property despite reducing the available garden space.

 

 

 

Last sale date: October 2006 for £575000

 

 

 

 

Estimated current value: A 4 bedroom, 2 bathroom property in the same street is currently for sale at £750,000. There are several recorded sales of similar houses with attic and kitchen extensions on the same street in 2011 for between £740,000 and £770,000. For example, 114 Clonmore street sold for £740,000 in March 2011. Based on this information, the current likely value of 66 Clonmore street is £760,000 - £770,000.

 

 

Estimated rental value and yield at original purchase value: £30-33,000 per year; 5.7% yield.

 

 

capital appreciation: 33% over 5 years; 6.6% average annual appreciation

 

 

Combined annual yield: 12.3%

 

 

Investment Observations: Although the combined growth on this investment may look less impressive, this property has grown steadily despite the global economic downturn, returning £200,000 capital appreciation for its owners and an easily achievable 5.7% rental yield based on the initial purchase price. Over a 10 year period it would have done much better still. The property shows that less expensive London suburbs continue to grow even during more challenging times. As better economic times are now on the horizon for the world economy, there are good prospects for more accelerated growth to be achieved by properties such as this. Meanwhile the property is in a very safe investment location with strong and steady demand from renters. Number 81 Clonmore street, which does not have an attic conversion and kitchen extension, recently sold for £627,000. This suggests that adding these two types of extension can add an additional £130,000 to value, whereas the estimated building costs could be around £75,000, making an additional profit in excess of £50,000.