Investment decision: Lindfield Gardens v Tormead Road

A landlord came to our office for advice recently asking whether he should invest by buying a five bedroom house in a more affluent area within a short distance of the town centre to let to a large family or to sharers. They were considering the residential area bordered by London Road, Epsom Road, Cross Lanes and Boxgrove Road.

We did some research and found a spacious sized five bedroom townhouse in Lindfield Gardens, with views over Stoke Park and on the bus route into the town centre and then onwards to the Surrey Research Park and Royal Surrey County Hospital.

This property was available for £575,000 and could be let out for £2,750 per month as a family single let to achieve an annual gross yield of 5.7%; or to young professionals (subject to receiving an HMO licence) for £3,850 per month, to achieve an annual gross yield of 8%.

Lindfield Gardens - townhouses

Properties in this area are very popular with families because there are a number of private schools located close by. These include Tormead, Lanesborough, Guildford High School plus George Abbot School so there is great demand from investors and tenants alike, making it a relatively good investment area within a desirable part of town.

Tormead Road is located within a 10-15 minutes walk of the town centre. London Road railway station is nearby, to provide links to both Guildford mainline and all stations to London Waterloo. Spectrum Sports Centre is located on the edge of Stoke Park and Merrow Downs are not far away, so active families are able to enjoy both town and country life here.

A place on which to reflect in Tormead Road

We then compared the property in Lindfield Gardens with a more spacious and therefore bigger five bedroomed detached house on Tormead Road to determine if the landlord would gain more financially, by buying there. The two streets are just five minutes walk apart so provide a useful comparison within the same area of Guildford.

A 5 bedroom detached house in Tormead Road was sold recently for £892,450 with a rental value of £3,350. While a more desirable road and mainly owner occupied it is unlikely to attract sharers as the nearest transport links may be considered too far away.

This means it is likely to be a family single let so while the rental will be £600 per month greater than the single let rental value for Lindfield Gardens it will not attract the premium rental for a shared property. The annual gross yield will be lower than the property in Lindfield Gardens, at 4.5% but the potential capital gain greater having invested more for the property in Tormead Road, will be greater.

Tormead Road

This shows that while properties can achieve a higher rent than others in the same geographical location it does not always suggest there will be higher returns for the investor.

More importantly an investor could purchase an investment property in this desirable area, where there is high demand for rental property, for a lot less than they might have thought possible all because they have done their due diligence on the type of properties available, and at what price, on various roads within a specific area.

In this instance our landlord will have the advantage of being able to offer his tenants the benefit of being located across the road from Stoke Park and on a major bus route, so both parties will be happy.

If you would like any advice on doing your due diligence when choosing properties in a particular area of Guildford or a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207.

Are local amenities important to house buyers?

Local amenities can be a big pull for property buyers, so it helps to know which essentials they would struggle to do without. As a seller, the local area – and, more specifically, the local amenities in your area – are likely to form a key part of a prospective purchaser’s buying decision, which means it pays to be clued-up.

Research carried out recently has sought to shed some light on this very topic. Revealingly, house-hunters still like the reassurance of key local amenities being within walking distance of their homes, despite the increase in online alternatives in recent years.

The survey, which polled 2,088 people, asked respondents the following question: “When looking for a new home… Which, if any, of the following would you need to be within walking distance of your new home (i.e. within a 15-minute walk)?”

Unsurprisingly, a supermarket within walking distance was the most in-demand local essential, with 49% of those surveyed saying they would need a major retailer nearby to consider moving to an area.

Homebuyers were also keen on a local Post Office branch (26%), a train or underground station (25%) and a local pub (23%) being in close proximity.

Despite the rise of online shopping and banking in recent years, many people still like local essentials to be physically available. So much so, only a quarter (25%) of those surveyed said they were not too fussed if no local amenities were situated within a 15 minute walk.

The research also showed a number of differences by gender and age. Women, for example, were more likely than men to need a Post Office and a supermarket close at hand. By contrast, men were more likely to require a pub within a 15-minute walk.

A pub was, in fact, more important for those surveyed than banks, schools and places of worship, but this might have something to do with the demographics involved – including people without young children and those who bank online – and the increasingly secular society we see in the UK.

One of the best pubs in Guildford 

Furthermore, the findings highlighted, as expected, the different priorities of millennials (those aged 18-34 years old) and the baby boomers (those aged 55 and above). The over-55s were the most likely demographic to demand a physical bank and Post Office within a 15-minute walk of their new abode.

On the other hand, only 16% of those aged 25-34 years old required a bank nearby. What’s more, only 20% would demand a local Post Office nearby – with millennials less likely to have much call for stamps or the sending of letters and parcels.

The generational divide was also highlighted when it came to the demands for a train or underground station. While only 20% of over-55s saw this as a necessity, 38% of millennials – more likely to be commuting to jobs in town and city centres – said it was a key local amenity, second only to a local supermarket.

Local schools also caused a generational divide. Only 7% of over-55s, a demographic much more unlikely to have young children, required a school close by, in comparison to 28% of 25-34 year olds, an age when many people look to start a family.

While good local amenities are highly desirable, sellers who don’t have all the local essentials outlined above should not despair too much. There will be many other factors that will influence whether a buyer decides to purchase a home – the home itself, the street, and the immediate local area.

And, as the research showed, different people require different things. Some will want a local pub or a high-street branch of a bank; others will want to be close to a Post Office, an outstanding local school, good restaurants/nightlife or excellent transport links.

It’s impossible to be all things to all people, but luckily Guildford has many good local amenities, to shout out about including local supermarkets, several train stations and pubs within the town and out in the local countryside. If buyers know they can shop fairly locally and get to and from work with relative ease, your home is likely to become much more appealing.

It’s very far from a one-size fits all situation when it comes to property, but if you have good local amenities it would be a wise choice to make this a key part of your sales strategy.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 320207 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Anyone for tennis?

I love this house as it is tucked away on a small development of just three properties in a driveway off one of the most desirable roads in this area, situated off Epsom Road.

It is therefore just a short distance away from London Road station and the town centre. The house is ideally suited to families whose children have been accepted entrance to Tormead and Lanesborough private schools, which are on the door step; and for tennis players wanting to play at the popular Pit Farm tennis club located around the corner.

This is a substantial 5 bed executive modern home comprising a master bedroom with 2 dressing rooms, shower room and bathroom; plus 4 additional bedrooms; an open plan kitchen, breakfast area, dining area and sitting room; and sauna, all located over three floors. There is a self-contained annexe with bedroom, kitchenette and shower room too.

The house is being marketed by our friends House, based in Cranleigh. Further details are available at:- https://www.rightmove.co.uk/property-for-sale/property-63817464.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email
richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Family living at a reasonable price close to town centre

This property provides a reasonably sized home for the advertised price so would make an ideal home for a young family. There are three bedrooms with two reception rooms and is located within a stone's throw of London Road railway station and the town centre yet has the luxury of a car parking space.

It would make an ideal investment property as well, returning around 4% gross yield if the rent charged for a single let was pitched at around £1,500 pcm. This is why I like this particular property.

Family house close to Guildford town centre

This 3 bed house is being marketed by our friends at Bourne Estate Agents so why not contact them to arrange a viewing now - https://www.rightmove.co.uk/property-for-sale/property-65673382.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email
richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.