News Crawley vs Horsham what makes a better investment
Published by Ben on 5th June, 2017
When it comes to making the best decision for property investment, there is a need to review different locations. One area or location may have a lot more to offer than other areas, so if you are looking to make the best investment and set yourself up for achieving the best return on your investment, you need to look at comparable areas. If you are looking to invest in West Sussex, you will find that comparing Crawley and Horsham is a sensible move.
A leading property market specialist states the current average value of property in Crawley stands at £330,559 with the average price paid for property standing at £308,468; both as of May 2017. In the 12 month period between May 2016 and May 2017, property prices in Crawley rose 5.23%. The average value for terraced properties was listed as £275,171 as of May 2017 and semi-detached properties were listed with an average value of £342,449.
By comparison, the same source states that the average value of property in Horsham, as of May 2017, stands at £450,420 while the average price paid for property stands at £386,630. This is a figure which has risen by 2.23% in the past 12 months. This means that Crawley property is classed as, according to this source, around £80,000 cheaper, on average, than property in Horsham. The price of property in Crawley has also risen by a greater amount in the past 12 months when compared to property in Horsham.
Lowest cost may not be the best investment option for your needs
If cost is the only factor that is important to you, Crawley is likely to be the more attractive option for your needs. Of course, a cheaper price doesn’t necessarily translate to better value for money, so investors need to think about what they are looking for before they buy property in either of these two areas.
There is also a need to consider the rental yield when it comes to determining what the best area to invest in is.
In Crawley, the RH10 and RH11 postcode areas are relevant.The RH10 postcode area covers areas like Tilgate, Three Bridges, Southgate, Rowfant, Pound Hill, Maidenbower, Northgate, Furnace Green, Domewood, Crawley Down and Copthorne.
Find the expected rental yield that meets your ambitions
The RH10 postcode area provides a strong level of consistency across the different property types. A one bedroom property is expected to provide a rental yield of 5.98% while a two bedroom property offers a 5.49% rental yield. There is an expected rental yield of 5.25% with a three bedroom property in RH10 and a four bedroom property offers an expected rental yield of 4.52%. The expected rental yield in the RH10 postcode area is 5.63%.
The RH11 postcode area also covers Crawley and includes areas like Bewbush, Broadfield, Gossops Green, Ifield, Langley Green, Lowfield Heath, Pease Pottage, Southgate West and West Green. There is a greater levelof diversity in the expected rental yields in the RH11 postcode area of Crawley, but there is a higher return on offer. The highest return on offer in Crawley comes with one bedroom properties, offering an expected rental yield of 6.35%. A two bedroom property in RH11 offers a 5,96% expected return while there is an expected rental yield of 5.34% from a three bedroom property. There is anexpected return of 4.91% from a four bedroom property and a five bedroom property provides an expected return of 3.91%.
There are also some areas of Horsham that offer anattractive expected yield with the RH12 postcode region worth checking out. This includes areas like Horsham, Warnham, Rudgwick, Broadbridge Heath and Rusper. A one bedroom property in RH12 provides an expected yield of 5.67% and there is an expected yield of 4.81% for a two bedroom property. A three bedroom property provides an expected yield of 2.9%, a four bedroom property provides an expected rental yield of 3.43% and a five bedroom property provides an expected rental yield of 3.01%.
In RH13, covering areas such as Barns Green, Partridge Green, West Grinstead, Slinfold, Cowfold, Southwater and Mannings Heath, there are some attractive options. The expected yield of a one bedroom property is 4.16% and the expected yield of a two bedroom property is 5.75%. A three bedroom property provides an expected yield of 3.35%, a four bedroom property provides a yield of 3.81% and you can expect a rental yield of 3% from a five bedroom property in RH13.
The lower cost of Crawley property plays a role in the expected rental yields being bigger in that postcode area but cost and yield are just two factors to consider when looking to buy property as investment.The facilities on offer in each local area and the demand for property in the two areas should also be considered. After all, an area with a high expected yield but no demand isn’t attractive and you would be far better off with a lower rate of expected yield but a greater degree of confidence that the property will be let to the sort of tenant you wish to work with.
Both Crawley and Horsham have their benefits when it comes to property investment so make sure you know what you are looking for when it comes to finding the property investment that works best for your needs.