The buy to let opportunity from The Bo’ness Property Blog today is an example of a buy to let property worth buying despite some of the key sales information being exaggerated.
The property is a 1-bed flat at 10 South Philpingstone Lane in Bo’ness that is selling for a guide price of £56,000. The flat, which is in good decorative condition, has a lounge, a separate modern fitted kitchen, a double bedroom and a modern bathroom with a shower over the bath.
Running the numbers on this one. The flat is on the market with Future Property Auctions for a guide price of £56,000; the Home Report valuation is £68,000. I would expect that you could get a rent level of £425/month which, as a purchase price of £56,000, would give you a yield of 9.1%.
Given all of this, the property is an attractive buy to let opportunity. As I said, it is being sold by Future Property Auctions so you would either have to buy it at their auction or it is possible to do a deal prior to the auction so long as you can agree a price with them.
So why do I say that there is ridicules information on the advert? Well, firstly the advert gives values of properties being sold in the neighbourhood for £89,000 and £92,000 but these are not comparable properties to the property at 10 South Philpingstone Lane being sold here and secondly the potential rental level for this property is being given as £600/month which is unrealistic – as I mentioned above you would expect a rent of £425/month.
Why inflate the numbers when ‘sensible’ numbers suggest that it is a worthwhile buy anyway?
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