If you’ve ever been to a property auction you may be aware that newbies sometimes get over excited and pay a premium for a property. The savvy landlords out there may be interested in the little number I’ve just found, its’ being advertised by Auction House and is being auctioned on 11th June at Bank’s Stadium, Walsall.
The non standard construction (Wates) house has a guide price of £77,500 and that’s not a bad price if you can purchase at this. Looking at recent sold prices in this road, I noticed that a 3 bed mid terrace was sold July 2014 for £118,500, yes it had been faced up, but even so this 2 bed is still a good price.
This mid terrace property is located in a popular residential area, is close to local amenities and favoured schools. The house which is in need of a kitchen and possibly a bathroom though there are no pictures of the bathroom to confirm either way. The house also needs some TLC.
It should rent out pretty quickly. I would expect to achieve rent of £595pcm giving an annual yield of 9.12% much better than what the banks are offering! I have not calculated the refurbisment costs so this needs to be taken in consideration before signing on the dotted line. This sounds like a win-win situation for an investor.
Also , don’t forget you can always put in an offer to secure a property prior to the auction if you are happy to pay the book price and the deal figures work for you [LTV, Yield , refurb. costs etc.] if you believe that at the auction date the book price is going to escalate.
But always remember to get the best advice and expert opinions you can. Speak to me, speak to others and most importantly do your homework. As long as landlords buy the right sort of property, that allow for a reasonable yield and/or decent capital growth, everyone will be a happy winner.
For any more advice, feel free to give me a call. 07531484956