It needs a complete refurb (cha-ching!), which, as long as you don't mind managing the work, will immediately add value to your investment. It's on at £350k (well, it says 'offers in excess of', which I always think is an agent being a bit cheeky, and hopefull!) but don't pay any more than this if you want to make the numbers work. Do it to a top spec and spend £20k on it with a swanky kitchen and bathroom and it will be worth easily over £400k. If I were doing it I'd also try and rejig the layout a bit to squeeze more space in to the second bedroom. This will help to expand the target market for renting it out.
http://www.rightmove.co.uk/property-for-sale/property-33508167.html
So, how does it stack up in terms of cashflow as a rental? Well, if you get it for the £350k and spend £20k that puts your total investment (minus fees) at £370k. Once done to a top spec you should get in the region of £1650pcm for it given its size and location. That would give you a gross yield of 5.4% on an invesment that is now worth at least £30k more and will go up with capital appreciation each year. Nice!
If you are a regular reader of my blog and are tempted to take the plunge into property investment then please do give me a call or email me (0208 398 9333 or rebecca@rebeccasmithpropertywservices.co.uk). I'd be happy to chat through your options and give you some advice on how the local area can work for you.
Rebecca Smith
http://www.rebeccasmithpropertyservices.co.uk/
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