Tuesday, 1 March 2016

Penicuik flat that needs refurbishment but a 10.7% yield is the carrot!

The Penicuik Property Blog’s buy to let opportunity today needs a refurbishment but, if you are up for the challenge, then I recken that you can get a yield of up to 10.7% on the property after refurbishment.

This property is a 3 bed, upper villa in a block of 4 on Carlops Avenue.  Carlops Avenue is off John Street at the Angle Park garage junction.  The flat has a lounge, an unfitted kitchen, three bedrooms (2 double and 1 single) and a bathroom without a shower.  The property needs to be refurnished.  It needs a new kitchen, a new bathroom and re-decorated and re-carpeted throughout.  Let’s say this costs £12,000.

This flat is on the market with Glasgow Property Agenda at a guide price of £78,000 which is £12,000 less than the Home Report value.  Given the condition of the property (ie needing refurbishment) and as the selling agent is not a ‘known commodity’ in Penicuik, it is hard to get a read on the sellers views on price so let’s say it is in the range of £78,000 (the guide price) and £90,000 (the Home Report valuation).  Adding the estimated refurbishment costs of £12,000 would get you to a total spend of between £90,000 and £102,000.
Housing benefit tenants should pay £800 pcm for a flat like this which gets you to a yield of between 10.7% and 9.4%.

If you would like to pick my brains about this property or buying any other properties for investment purposes, pop into our office at 6 Bank Street, Penicuik for a coffee and we can have a chat.

1 comment:

  1. For sale at auction (end of March). I seem to remember that buying at auction is an instant commitment. 10% paid on the day and the balance within a month. (I could be making this up). However as you are committing to buy all legal check need to be completed before you buy. There also seems to be an auction fee for the buyer. Budgeting to putting is GCH should be considered. That said, it is a lot of flat for the price.