Crawley development delivers investors an annual return of 9.6%

Ever since the banking crisis began and interest rates for savers hit rock bottom, many people have been looking for alternative investments outside the banking sector and new build property is becoming an increasingly popular option.

Buying a newly built home and then making it available to rent, provides a stable home for capital whilst offering attractive annual returns. The best developers now offer specific packages to investors and the rental market, particularly in the South East, continues to go from strength to strength with rents in the private sector now at record highs.

Not all developments are the same and not all developers offer the same incentives for investors, but if an investor can find the right development in the right location the returns can be substantial.

One of the most popular developments for investors in the South East is Pembroke Park in Crawley. Built by Fairview New Homes, one of the UK’s leading residential developers, the development, in the centre of the town, has proved a very attractive location particularly for first time buyers, young couples and young professionals working both locally and in central London. As a result of this universal appeal, there is a very healthy rental demand at Pembroke Park. Close to the train station, and the direct line into central London, it has a local supermarket on the doorstep and yet the beautiful Sussex countryside is only minutes away.

One investor, who as he now lives at Pembroke Park wishes to remain anonymous, is just in the process of buying his fifth apartment at the development.

Now retired after spending his working life in the City of London he has lived in Crawley for over 25 years and knows the town very well: “The flats have proved an excellent investment for me. I paid between £147,000 and £165,000 for the apartments and I get monthly rents of between £900 and £975. The demand for the flats is such is that they have never stood empty for more than a month between tenancies. My tenants all work locally either in Crawley itself or as cabin crew from Gatwick.

“The flats are so well situated. You can walk to both Crawley and Three Bridges stations easily and the town centre is just round the corner. That said, it is such a benefit having a local Tesco as part of the development. Some of the flats have stunning views and indeed I now live in one of the apartments simply because it took my breath away when I first walked in. I decided there and then to rent out my existing flat in the town centre and move to Pembroke Park.

“The process of renting the flats has never been a problem. I always use an agent to handle the tenancies and that smoothes everything over for me. No hassles and a 7% yield. Pembroke Park has been very good to me.”

For investors looking to buy at Pembroke Park, Fairview New Homes is presently offering a to guarantee investors an additional annual return of 2.5% - on top of the market rent. The rental guarantee runs for two full years and should allow investors to generate a yield on investment at Pembroke Park of approximately 9.6% based on the following example.

A two bedroom apartment is available for a purchase price of £165,000 and similar properties are renting in Pembroke Park for £975pcm giving a market rental yield of 7.1%. For the first two years Fairview will guarantee a further 2.5% return delivering an aggregate yield of 9.6%.

One bedroom apartments are available at Pembroke Park from just £132,950 and two bedroom apartments are available from £154,995. Further details about Pembroke Park can be found at fairview.co.uk.