Following the successful sale of two of our investment properties on the open market (you can read more about these below), we are pleased to report that we have now completed the sale of the third investment property.
Heathlands Way, Hounslow, TW4 was sold for £322,500, a 33% increase on the initial purchase price and a 13% premium to its trading price on the Resale Market.
For investors who bought shares when the property first launched on our platform in February 2015, this represents a 31% total return (capital gain, plus dividend income) after fees and costs.
“Of the three properties we have sold, Heathlands Way, Hounslow had the latest tenancy end date. After the tenants vacated on 28 September 2018, the property was made ready for sale and we accepted an offer in December for £322,500.
Market conditions had worsened in the time between making the recommendation to sell and putting the property on the market. As a result we are very pleased to have achieved this sale price, which is in line with the valuation we received in March 2018. As I’ve said before, it is the good properties that can still sell in weaker market conditions, and this sale was down to quality of property selection.”
Robert Weaver, Chief Investment Officer
The below table outlines the key metrics achieved on sale:
|Property capital returns||Initial purchase price – in June 2015||£243,000||33% gain on initial purchase price|
|Latest valuation – as of March 2018||£325,000|
|Final sale price – agreed December 2018||£322,500|
|Returns for clients||Initial purchase price (including costs)||£262,000||19% capital return after all fees and costs|
|Final proceeds of the sale (after tax and professional fees)||£312,654|
|Total return (including dividends paid)||£343,268||31%|
How have the other properties progressed?
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Important notice: Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Forecasts are not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Before investing please read Key Risks. Financial promotion by London House Exchange Limited (8820870); authorised and regulated by the Financial Conduct Authority (No. 613499).