Having seen little in the Rugby market that offers value in the last 12 months, I've now come across 2 (maybe 3) good value investments in the last 3 days! All are repossessions - perhaps this is the reason as there has been a scarcity of these in Rugby of late.
Property ONE : 3 Bed House in Frobisher Road, £89,995
Property ONE : 3 Bed House in Frobisher Road, £89,995
- Freehold.
- Repossession - needs someone that can proceed quickly.
- Will rent for £550PCM on a bad day - this will be a private tenant.
- Advertised price of £89,995 - it may be possible to achieve a small discount on this. Other properties on the same road are currently advertised for in excess of £115k.
- It may be possible to 'flip' this property, or re-mortgage out of it.
- Is not in perfect condition, and requires a spend of just less than £10k.
Suggested purchase price
|
£87,000
|
Estimated refurbishment spend
|
£10,000
|
Total spend
|
£97,000
|
Estimated monthly mortgage payment (2yr fixed)*
|
£290.00
|
Estimated monthly mortgage payment (5yr fixed)*
|
£350.00
|
Monthly rental figure**
|
£550.00
|
Annual yield
|
6.8%
|
*assumed borrowing 80% of purchase price on a buy-to-let basis.
**rental figures are conservative.
Property TWO : 2 Bed Apartment in Grenville Close - £48,000 CASH PURCHASE ONLY
- Leasehold - current lease is under 60 years. Hence this property is not mortgageable. You would also need a new lease. I'm not an expert here, but am advised you should budget £5k.
- Repossession - going to auction with a guide price of £48k. You may be able to secure it for less at auction, or maybe prior to auction.
- Will rent for £425PCM on a bad day - this will be a private tenant.
- Requires upgrading - budget £8k + VAT.
Suggested purchase price
|
£48,000
|
Estimated refurbishment spend
|
£8,000
|
Total spend
|
£56,000
|
Estimated monthly mortgage payment (2yr fixed)*
|
n/a
|
Estimated monthly mortgage payment (5yr fixed)*
|
n/a
|
Monthly rental figure**
|
£425.00
|
Annual yield
|
9.1%
|
*assumed borrowing 80% of purchase price on a buy-to-let basis.
**rental figures are conservative.
Property THREE : 3 Bed House in Campbell Street, £75,000
- Freehold.
- Other properties locally seem to be selling for in excess of £100k. As such you may be able to re-mortgage for a higher figure.
- Repossession - going to auction with a guide price of £75k. You may be able to secure it for less at auction, or maybe prior to auction.
- Will rent for £550PCM on a bad day - this will be a private tenant.
- Requires upgrading - budget £11k + VAT.
Suggested purchase price
|
£75,000
|
Estimated refurbishment spend
|
£11,000
|
Total spend
|
£85,000
|
Estimated monthly mortgage payment (2yr fixed)*
|
£250.00
|
Estimated monthly mortgage payment (5yr fixed)*
|
£300.00
|
Monthly rental figure**
|
£550.00
|
Annual yield
|
7.5%
|
*assumed borrowing 80% of purchase price on a buy-to-let basis.
**rental figures are conservative.
please email richard.baker@belvoirlettings.com with any queries.
