11.1% yield on this specialist 4 bed house in Falkirk

As the week comes to an end, I thought that I would leave you with a high yielding but specialist property in Falkirk to ponder over the weekend.  The property is sound, the yield is very good and it needs a wee bit of work done to it but nothing major so all good there.  However, there is a but ...... let me explain.

The property is an ex Council, 4 bedroom terraced house in Torridon Aveniue in Falkirk.  Torridon Avenue is off Carron Road in Carron.

This house is a large house.  It has a good sized lounge, a fitted dining kitchen, four bedrooms and a bathroom with a bath and shower over it.  There is double glazing, gas central heating and on street parking.  There are gardens at the front and rear.  The property needs a wee bit of modernising – re-decorating, some new carpets and possible new doors to the kitchen units – but not a total re-furb.

Double click here to get more details about this property

The asking price for this property, which is on the market with Your Move, is offers over £73,000.  The property is recently on the market so let’s say it sells for £80,000.  I would reckon that the works required might cost £5,000 which gets you to a total spend of £85,000.  This property is likely to rent to housing benefit tenants and the housing benefit rate for a four bedroom house is £787.50 pcm. 

So that gets you to a yield of whopping yield of 11.1%.

Now for the ‘but’!  This is a specialist property given its location and size.  The location is likely to mean that it is likely to be rented to a housing benefit tenant.  The size means that the pool of people looking for a property of this type will be less – you need big family to need a four bedroom house.  This means that it is a higher risk property ..... but then again it has a whopping yield of 11.1% to compensate for this higher risk.

I will leave you to ponder this one over the weekend.

If you like the look of this one, get in touch for a chat (6 Vicar Street, Falkirk; 01324 469840; falkirk@thekeyplace.co.uk).  If you don't like the look of this one but have seen another property that you would like some advice on, get in touch for a chat as well.