4 bedroom bungalow, 109 The Uplands. Possible Yield of 11%! SOLD FOR £55K.
I was surprised to notice that a 4 bedroom bungalow on The Uplands had recently sold in the SDL auction on 22nd February for £55,000. I though those days of the bargain properties with a price tag beginning with a 5 were well and truly over so it certainly put a smile on my face on a wet and windy day. From the pictures in the auction catalogue it looked like it needed a full refurbishment, but even with a £10,000 renovation, it will still have made someone a great little investment property.
So, the property was purchased for £55,000, I am allowing £2,000 for closing costs including auction house commission, £1,650 for stamp duty, £10,000 for the renovation, Total costs of £68,650.00. The property could rent from between £600 and £650 per month depending on demand and the overall finish. I have assumed a rental income of £625 for my calculations, the approximate yield would be around 11%!
Someone has grabbed themselves a bargain. As a property investor, its always worth keeping your eye on upcoming auctions although just because it is in the auction it doesnt mean it is a bargain, do your due diligence.
If you are thinking of adding to your property portfolio or dipping your toe in to the property market for the first time, please feel free to pop in to our office at 60A High Street, Runcorn, WA7 1AW or give us a call on 01928 246 888 or email firstname.lastname@example.org if you would like our opinion on anything you are thinking of buying.