LETTING & ESTATE AGENT

Crawley Studio Flats - Are They Worthwhile Investments

Crawley Studio Flats - Are They Worthwhile Investments

During the 80’s & 90’s the builders of the private estates on the outskirts of Crawley built the whole range of property types including studio apartments.

Prices have increased now but earlier this year a client of ours sold the studio flat he purchased in 2009.  After five years the capital growth had not been outstanding, only 4%.  If he had purchased the flat when it was previously sold in 2003 the capital growth would have been a much higher 50%.  What struck us was the yield, based on the 2009 purchase price the yield was a phenomenal 8%.

Studio apartments tend to be the first rung on the property ladder for tenants or a temporary place to stay for visiting workers and experience a higher turnover of tenants than the larger properties.  But with a constant stream of workers coming to Crawley to work at Gatwick Airport the studios are always in demand and this has continuously pushed up the monthly rent.  At the price the flat sold at this year the yield is still just under 8% (7.93% if you want the exact figure).

So are studio flats worth investing in?  If the right location & the right price can achieve an 8% yield – yes they are.