14.5% yielding Falkirk BTL property that is definitely worth a look!

The last buy to let opportunity I posted on The Falkirk Property Blog was a KISS one .... it was a really simple buy to let opportunity.  Today’s one is the complete opposite as it is risky and will not be for everybody .... but the rewards all the greater as a result of this!

The property is a 4 bed upper villa in Hayfield in Falkirk.  Hayfield is just the other side of the canal off Bankside.

The property has a large lounge/dining room, an old style fitted kitchen, 4 good sized bedrooms and a bathroom with a shower over the bath.  It has double glazing and gas central heating.  There is an enclosed rear garden and on street parking.

Based on the pictures, the property needed a bit of sprucing up but, gut feel, no more than £10,000 worth of work.

Double click here to get more details about this property

Turning to the financials.

The asking price for this property, which is on the market with Your Move, is offers over £50,000 so let’s say it goes for £55,000.  Adding in for now the gut feel spend needed on the property of £10,000 gets you to total spend of £65,000.

This property is likely to be rented to Housing Benefit tenants – the 4 bed rate is £787.50 pcm.

So that gets you to a whopping yield of 14.5%.

That looks too good to be true I hear you say.  Well, probably not too good to be true for the right buyer but certainly you need to go into this one with your eyes open as:

• The property is being ‘Sold as seen’ which means any issues with property are for the buyer to deal with.  Given this, you need to do more due diligence, and you need to take more serious legal advice, before you buy. 
• The property is effectively a ‘double upper’ (ie first and second floors) with 2 of the bedrooms being in the attic.  This will reduce the number of tenants wanting the property given that it is the sort of property that would suit a large family.
• The property does need work doing to it.  If you are up for this then you would need to access this carefully to work out what needs doing and how much it would cost.  My £10,000 gut feel is just that a gut feel!
• To get this level of rent you are likely to need to take Housing Benefit tenants and you need to be comfortable with this as a landlord.

However, at a yield of 14.5%, it is worth a look!

We hope you find our posts useful.  If you would like some advice with your potential investment, pop into my office at 6 Vicar Street, Falkirk for a chat – the kettle is always – or call me on 01323 469840 or email me on news@thekeyplace.co.uk.

www.thekeyplace.co.uk