Mon 06 Mar 2017
4 bedroom bungalow, 109 The Uplands. Possible Yield of over 11%! SOLD FOR £55K.
I was surprised to notice that a 4 bedroom bungalow on The Uplands had recently sold in the SDL auction on 22nd February for £55,000. I though those days of the bargain properties with a price tag beginning with a 5 were well and truly over so it certainly put a smile on my face on a wet and windy day. From the pictures in the auction catalogue it looked like it needed a full refurbishment, but even with a £10,000 renovation, it will still have made someone a great little investment property.
So, the property was purchased for £55,000, I am allowing £2,000 for closing costs including auction house commission, £1,650 for stamp duty, £10,000 for the renovation, Total costs of £66,652.00. The property could rent from between £600 and £650 per month depending on demand and the overall finish. I have assumed a rental income of £625 for my calculations, the approximate yield would be over 11%!
Someone has grabbed themselves a bargain. As a property investor, its always worth keeping your eye on upcoming auctions although just because it is in the auction it doesnt mean it is a bargain, do your due diligence.
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