Friday, 18 December 2015

Deal of the week - 2 bed flat in Broomhill, over 7% yield

As the nights continue to get darker and Christmas is almost upon us, it is a quieter time in the property market. But good deals are still around. Like this one that has just come on the market with Paccitti Jones for offers over £89,000.
For full details click here

It is a 2 bedroom flat in the popular Broomhill area in the West End. It is an area I like a lot, with good amenities and parks, is close to the University and town centre and is popular with both young professionals and families. It is a strong rental area - around 1/3rd of households are in private rented accomodation - so renting out should not be a problem.

The flat looks like it could benefit from a some modernisation / re-decoration and probably a new kitchen and bathroom. This should cost you around £15,000 and makes it more attractive to the investor market.

This flat, when done up, should rent out quickly. According to the latest Citylets stats, rents in the area are up 4% year on year and the average flat only takes 14 days to rent. In terms of rental return you should expect between £700 and £750 a month.

So looking at the figures, if the property costs you £115,000 (purchase price of say £100,000 and £15,000 spent on updating) and you rent it out at £725 pcm you will achieve a good yield of 7.6%.

And if you act now you can avoid the new 3% stamp duty levy for buy-to-let investors that comes into force in April, saying yourself £3,000.

The key to property investing is buying the right property in the right location. If you would like to have a chat regarding this, or any other property, then why not give me a call on 0141 221 1827 or drop me an email on At Douglas Dickson we are always happy to give you our unbiased opinion. Likewise, if you want to take the hassle from finding the deals yourself, we offer a property sourcing service – click here to find out more.

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