Rent, rent-to-let, buy, or buy-to-rent: all options are open in Orpington
With property prices in London seemingly at a plateau, house buyers and property investors are looking elsewhere for opportunity. We think that opportunity is Orpington property.
It’s a place that is within easy reach of work and play and saves homeowners (and renters) a small fortune in housing costs. That fortune translates into big savings even when travel costs are included. Even better, Orpington is benefitting from an unprecedented level of regeneration.
How the numbers for renters add up
Let’s say you are a young professional, with a penchant for apartment living. You may work in the heart of the city, where you rent an Islington apartment. That’s going to set you back around £2,441 per month, according to the median rent as analysed by website home.co.uk. Rent a similar Orpington property and you’ll pay an average of £1,156 per month in rent: that’s a cool saving of £1,285 per month (or £15,420 per year). Living in Orpington, you won’t even need to balk at the price of a season ticket: just £1,912 per year. And the journey into Cannon Street is less than 25 minutes.
With around £13,500 extra cash you could afford to buy an apartment on the same development as an investment (in fact, let-to-rent investment is gaining in popularity as an investment strategy). If you did, how would your investment pan out?
How the numbers add up for property investors
Having looked at the rental values and seen the savings possible, let’s look at how the numbers stack up for property investors. The average asking price for an apartment in Islington is £947,275. As a property investor, that’s a pretty big risk position on a single property. But you do benefit from rental income of £2,441 per month, or a gross yield of 3.1% − that’s better than what you’d get in a bank. But wait until you see what yield you could get on an apartment in Orpington.
Orpington property values are far more affordable than central London. In Orpington, the average asking price for an apartment is £305,850. You could buy three Orpington properties for the price of one in Islington – and save on stamp duty, too! It gets even better when you consider cash flow and yield. Based on the median rent, you’ll gross 4.5% on your Orpington property investment. That’s 50% better than the property investor who had to pay more than three times the amount for an investment property in Islington.
But of course, investment is only as good as the fundamentals enable it to be. Here, again, Orpington is a winner.
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Orpington property prices benefitting from unprecedented regeneration
Orpington has undergone something of a revolution over the past few years, and one that is gathering pace. There is everything the family and young professional desires. While London is on the doorstep, closer to home you’ll find a go-ahead town with a seven-screen cinema, gyms, and a plethora of restaurants to suit all tastes. Retail facilities are excellent, as are schools. And, of course, the fresh air of the countryside is on the doorstep, too. It’s the best of London living without London prices.
Developers have been quick to respond to the attraction of Orpington property, and new developments are enhancing the area further. All the major developments are within walking distance of the link into London. These include:
- Brunswick Square from Berkeley: a stunning development of modern one and two-bedroom apartments;
- A small but chic development of family homes from Asprey Homes at Bayfield Place;
- London Square is currently working on plans for a mixed house and apartment development set around landscaped gardens.
All of these Orpington property developments will benefit the property investor in the same way that all new properties do: lower maintenance costs, higher rental income, and if buying off-plan, a great entry-level price.
To discover more about the opportunities and fundamentals underpinning Orpington property investment opportunities, call YPC team today on +44 207 923 6100.
Download the free guide – https://www.gladfish.com/property-investment-research/orpington-property-a-home-run-for-investors-buyers-renters