Monday 5 November 2018

Is this Bo’ness buy to let opportunity just ‘too good to be true’?



Today’s buy to let opportunity from The Bo’ness Property Blog could be a real bargain but it needs a bit of thought and further investigation to check that it is not just ‘too good to be true’.

Firstly, let me let you about the property.  It is a 1-bed first floor flat in Liddle Drive in Bo’ness that is selling for offers over £55,000.  The flat has a lounge, a separate fitted kitchen, a double bedroom and a bathroom with a shower over the bath.  There is a shared ‘garden’ area at the rear and on street parking.  The flat needs  a bit of refurbishment – for example, the kitchen and bathroom are a bit ‘tired’.



So why am I saying that this opportunity needs a bit of thought and further investigation to check that it is ok.  Firstly, the property is being advertised as a 2-bed flat when it is actually only a 1-bed flat.  Secondly, the selling agent, Springbok Properties is making a ‘big thing’ about the property having been valued by a surveyor when of course it has been as it is the law in Scotland that this is done.  Thirdly, the asking price – offers over £55,000 compared to a valuation of £65,000 – is suggesting that the price is very cheap but my experience with Springbok Properties is they offer their properties at cheap prices to generate interest but do not sell them at cheap prices.

Looking at the financials ..... based on the above comments, these will need to be re-assessed after the further investigation noted above to ensure that they are still reasonable after this.  The flat is on the market for offers over £55,000 but I would expect that you would need to be paying £65,000 to secure it.  I estimate that refurbishment costs may be £5,000 which would take the property cost to £70,000.  I would expect that you could get a rent level of £425/month based on the flat being refurbished which would give you a yield of 7.3%.

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 6 Vicar Street Falkirk to see me or email me on news@thekeyplace.co.uk.


#bo’ness #boness #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #energyefficiency #privaterentedsector #prs #privaterentedsector

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