Tuesday, 28 October 2014

A potential deal to be made in Warrington, 8.5% Yield

#property #investments #warrington #tenants #rent #buy

This property caught my eye as I thought it had quite a bit of potential, not only to increase the value of it, but also to generate you a good return as an investment for buy to let.

It needs a little bit of TLC, but to me it's only cosmetic and you don't need to go overboard if you are going to be renting it out. Some new flooring, redecoration and potentially updating the bathroom as there doesn't seem to be an image for that. It already has central heating and double glazed windows which is a bonus.

I imagine you could do this for a max of £3k. So, if you add this to the purchase price of £59,950, making a total spend of £62,950. Comparing this to the potential rent you could expect, which would be in the region of £450 pcm, you are looking at a gross yield of 8.5%!

Negotiate the purchase price to increase the yield, i would advice you to offer £5k less than the asking price then slowly working to £3k less which shows the vendor your flexible and they will walk away happy and you walk away with the refurb cost covered into the purchase.

I'm sure I'm not the only one that's spotted the potential, so get in touch with the agents and book yourself an appointment quick!

As usual, if you have seen a deal and would like a second opinion, give me a call or drop me an email with a link to the property.

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