Get in quick for this cracking Falkirk buy to let opportunity for the disciplined investor!

Speed and discipline, that’s what you need for this Falkirk buy to let property.

The property is a first floor, 2 bed flat in a fairly modern block in Middlemass Court which is off Graham’s Road.  It will sell quickly so if you are interested then get in quick.

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Firstly, the good points.  The property is on the market with Allan & Harris and it is priced to sell at offers over £40,000.  The property will rent easily and you could expect to get £450 per month in rent.

Now onto the not so good points. 

The property looks like a re-possession.  The photos have been cleverly taken to avoid showing the tell tale signs of a re-possession (eg tape over the toilet) but the property is being advertised as being ‘old as seen’ so it is fairly clear that it is a re-possession.  Now I am not against re-possessions in principle, and have bought some myself, but there carry greater risk as you have virtually no comeback on the seller so if you are buying a re-possession make sure you do enough diligence and take the requisite legal advice.

The property needs work to it.  This looks like mainly decorating and flooring but there are no photos of the bathroom so worth checking this out in particular. 

However, the biggest issue is the combination of a property that is priced to sell with ‘complications’ eg re-possession, needing works done to it.  The good price will attract lots of interest which is likely to include inexperienced buyers who may not correctly price in the risks/costs of these complications and therefore may offer silly money for the property.  This is why you need to be disciplined, otherwise may get ‘deal fever’ and over pay for what should be a good deal on paper.

As an illustration, if I was buying this property, I would base my price on getting a 10% yield which would take account of the re-possession risk (although I would do more diligence than normal on the property as well) and a conservative estimate of rent of £425.  This would get me to a total price of £51,000 off which I would take the re-furb costs of say £5,000 leaving £46,000.  In this example, this is the maximum price I would offer and if this is a lower price I may offer got me the flat then all well and good but if it didn’t then there are plenty more fish in the sea!

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 want to have a chat about another property you have seen, get in touch as well and I will give you my impartial advice about the property.