Recent Property Deal
We sourced and refurbished this property before managing it for our client who was looking for a greater return on their savings than what they were getting from their bank.
Project Summary
The property was bought directly through an estate agent with who we have a really great relationship.
This property is all about its location - it's based on one of our target streets which is close to a hospital, has great transport links and proximity to the motorway.
The street is extremely popular as it is set in a private cul de sac, so ideal for residential lettings. The property included good sized gardens to the front and rear which increases its rental demand.
Financials
Cash Invested
£28,945
Purchase price: £105,000
Mortgage: £78,750
Deposit: £26,250
Stamp duty: £3,150
Legal fees: £750
Refurb costs: £7,800
Tenant finding cost: £250
Additional costs: £7,995
Initial cash invested: £46,195
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Post refurbishment value
Re-valuation: £128,000
Mortgage: £96,000
Cash left in the deal: £28,945
Annual Net Annual Profit
£3,450
Gross monthly rental income: £675
Letting management fee @10%: £67.50pm
Mortgage @4%: £320
Monthly net income: £287.50
Annual Return on Investment
12%
Gross rental yield: 6.33%
Net rental yield 5.70%
Before
After
The refurbishment needed was a new kitchen and bathroom with general decorating throughout. It already had great features in place with a sunroom/conservatory, garden shed and wood-burning stove.
The refurbishment was turned around in 4 weeks, and the first couple to view the property took it on a long term rental. A working mature couple where the wife worked at the hospital and the husband looking for his garden and shed.
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