Thursday, 4 April 2013

7% yield, cheap asking price. Loughborough.

 
I was chatting with a colleague today about investment properties that some landlords just seem to miss and I saw this one so had a closer look. At first glance it's cheap and on an ex council house estate (Shelthorpe) so you may skip past it - however ....
One of my investment landlords has properties on the Shelthorpe estate and has had them for many years. When he got into it, purchase prices were typically £40K. So, no such bargains to be had like that - or is there?
This one on Beaumont Road Shelthorpe is on the market with what looks like an internet selling agency and a quick sale is wanted offers over £85K. The back garden needs work and it appears the central heating is partial, not full. However, the glazing is UPVC, the street and area are nice, there are three bedrooms, there's off road parking and being ex local authority it's pretty spacious and probably solidly built! The kitchen is modern and most of the interior decor appears to be good.
Plenty of local services and shops plus schools. I reckon tenants on a budget and in need of competitively priced rental accommodation they can fit a family in would jump at this, and probably stay in it for years.
So it's on the market with asking offers over £85K. Indicators: There are currently two other three bed properties on similar roads close by up for rent at £500pcm and £550pcm respectively. I have one close by I've rented for years currently at £505pcm and we've done others at rents higher than that. So let's say a safe average of £515pcm rent then this house will give you a gross yield of 7% if you get it for £85K.
I would go and look at this one!

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