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
No comments:
Post a Comment