Today buy to let opportunity from The Falkirk Property
Blog 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.
Turning to the financials.
The asking price for this property, which is on the
market with Your Move, is offers over £45,000.
The property has been on the market since June and the price was dropped
from offers over £50,000 to offers over £45,000 at the beginning of September
so it looks like the seller is desperate
to sell. Given this, let’s say it goes
for £48,000. Adding in for now the gut
feel spend needed on the property of £10,000 gets you to total spend of £58,000.
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 16.3%.
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 16.3%, 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.
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