This property presents a distinct opportunity for investors looking to capitalize on immediate rental returns and significant developmental possibilities in a thriving area of East London. Situated on the bustling Romford Road, known for its high foot traffic, this asset comprises a ground floor retail unit formerly occupied by a hairdresser, which comes with A1 licensing and is poised for quick occupancy or leasing. Potential annual rental income from this space is estimated at £24,000. The unit features a compact kitchen and bathroom, making it suitable for various business ventures with minimal refurbishment needed.
Additionally, the property includes a spacious two-bedroom flat that is currently rented below market value at £1,200 per month. With adjustments based on current demand, there’s an opportunity to increase this to £1,800 per month, translating into a potential annual income of £21,600—a significant uplift that enhances overall yield.
The first-floor three-bedroom flat sits on a long-term lease and offers future value but currently generates no rental income.
Further enhancing the investment appeal is the extensive development potential. Discussions with local architects suggest that constructing two additional flats in the back garden could very likely receive approval. Moreover, vertical expansion appears feasible given the surrounding properties' height.
With strategic positioning in Newham (E12) and projections indicating an increase in Central London's expansion into this area, this property is ideally placed for long-term appreciation. The historical growth seen in adjacent areas reinforces the promising outlook for property value enhancement.
Overall, with secured rental incomes currently projected at £40,000 annually and strong possibilities for further increases through strategic development initiatives, this property not only serves as an immediate investment but also as a vehicle for substantial financial growth.
