

If your family home has a reasonable size garden then an abode can be added to provide you with an income and increase the value of your home.
With very low interest rates available on savings, wise investors are choosing to develop abodes in the garden to achieve additional rental income and boost the value of their properties, seeing long term growth on the equity value of the asset, an immediate equity jump on development of the abode and of course the rental income.
The following table shows a comparison of investments either in a fixed deposit account or in an abode for development in the investors’ garden.
| Investment | Fixed Deposit Account | 1 bed abode |
| £40,000 | £40,000 | |
| Yearly Return | £1,200* | £7,200** |
| % Yield | 3%* | 18% |
*Based on a search of rates Dec ‘09
**Based on an average £600 rent from property advertised Dec ‘09
This comparison does not factor in the increase in value in property, in recent times property values have fallen but on average over the last 40 years property values have steadily increased.
Contact our team today for a free no obligation assessment of your site.
Property portfolio owners may be missing out on an income-earning potential in the gardens of the properties they rent out.
Landlords can improve returns on their investment by adding income-earning abodes to gardens. Abode4 works with landlords to assess housing stock and recommend where an abode can be added and will make economic sense.
We will undertake a free assessment of the properties to find which may be suitable for the development of abodes and then, if required, secure planning permission for the sites and then on to the construction of the abodes. Our construction methods cause the minimum of disruption for existing tenants and in most cases abodes are built within 10 days.
The study below outlines potential returns.
| Cost of 1 Bed Standard abode | £39,500 |
| Expected rental in this area * | £1,000 |
| Gross annual return ** | 30% |
*Estimated rental rate based on 1-bedroom flats listed for rent in the same location at time of study.
**Gross return excludes soft costs such as insurance and management that may vary.
A further consideration would be the drop in rent achievable from the main house by the reduction of the garden size available to the tenant, and potential privacy issues. Our market research shows that in the majority of cases the size of garden available to a rental property has little bearing on the rent achievable. Our designers use fencing or landscaping to screen the abode where privacy is a potential issue.
Contact our team today for a free no obligation discussion on whether an abode4 investment is right for you. We will carry out a preliminary study of your property for you free of charge.