Great investment potential in letting spare room at Lower Eastside

At the Eastside development in Bow, E3 there is great investment potential for singles purchasing a two-bedroom property and letting the spare room to a lodger.

Lower Eastside, the latest phase at Inspace Homes (formerly Widacre Homes) and joint venture partner Your Lifespace comprises of 68 one and two-bedroom with prices that are attractive to both first-time buyers and investors. Prices for a two-bedroom apartment start from just £267,450- a remarkable price given Lower Eastside’s close proximity to the Olympic Village and potential for house price appreciation.

One of the advantages of renting your home is the tax exemption. The government has a rent a room scheme, which provides exemption from tax when an individual lets out part of their home. The exemption covers rental income of up to £4,250 per year. The first £4,250 of your rental income is therefore tax exempt, but anything above this amount must be declared for tax.

More importantly, renting a room gives assistance in paying the mortgage. Over the long term, property is seen as an improving asset and renting a room can help the owner eventually afford the mortgage on their own. Additionally, there are a few mortgage companies that offer a “buy to share” scheme, which allows customers to increase the amount that they can borrow by taking into account income likely to be gained from renting out a spare room.

Apartments at Lower Eastside are accommodated in a five storey contemporary building set around a gated courtyard, with parking and landscaped grounds. The building’s façade is a clever fusion of pale and burnt orange render balanced with glazing, iron balustrades, topped with a wood panelled uppermost level; the overall effect is a dynamic, unashamed, modern landmark in the local area.

Each apartment offers spacious interiors and floor to ceiling windows allowing the maximum amount of light to flood in. Purchasers can pick from seven apartment layouts including open plan or separate kitchens, some with en-suite shower rooms. All of the two-bedroom apartments have two double bedrooms, rather than small second bedrooms, making them ideal for sharers.

Fitted kitchen incorporating integrated appliances, such as fridge/freezer and washer/dryer from Bosch feature in the properties. White sanitaryware with chrome mixer taps, and ceramic wall and floor tiles from Porcelanosa can be found in the bathrooms. Most of the apartments will also benefit from an outside space such as a balcony, Juliet balcony, or terrace, offering stunning views of the beautiful piazza-style garden square also located adjacent to the development.

Ken Barnett, Associate Director of selling agents Strettons Residential, comments: “The Eastside development has great investment potential as it is well-located to both Canary Wharf and the City. It has great transport links, which makes it vital for those interested in looking for a rental. Additionally there is a good demand of renters in Bow, which will be further boosted by demand from up to 40,000 people working on the construction in the Olympic area starting in mid 2007.”

For first-time buyers, Ken recommends buying a two-bedroom apartment in order to maximise the value, and get more from the property. Additionally when a property value increases, the owner receives more profit or actual cash.

Prices at the latest phase, Lower Eastside, start from £217,450 for a one-bedroom apartment and £267,450 for a two-bedroom apartment. For further sales information, visit eastside-e3.com.