The buy to let opportunity from The Bo’ness Property Blog
is an example of a buy to let property not to buy!
The flat is a studio or possibly a 1 bed flat in Links
Road, Bo’ness that is selling for £33,000.
At that price I hear you say, it must be a bargain. Well, no.
This is an example of price is not necessarily a good guide to a
bargain.
Running the numbers on this one. The flat is on the market with Visum for a guide
price of £33,000. If you could rent it
as a 1 bed flat then you would get £300 pcm for it; if you hard to rent it as a
studio flat then you would get £250 for it
which gets you to a yield of 9.1% to 10.9%.
Whilst the yield looks attractive, this is not a good buy
to let investment for a number of reasons including flats in this block are
hard to let due to the current tenants staying in other flats, most mortgage
companies have minimum property values of around £40,000 so it may be difficult
to get a mortgage on the property and the fixed costs of buy to let (eg safety
checks) will be disproportionately high on this low price, low rent property
and it will be difficult to get the owners to cough up for the communal repairs
that are required on the block
We hope you find our posts useful. If you would like some advice with your
potential investment, please call me on 01506 828096, pop into the office at 19
Main Street to see me or email me on news@thekeyplace.co.uk.
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