3 bedroom house, Southgate, Crawley
Here’s another “doer upper” for you to consider. A 3 bedroom terraced house, in Southgate, Crawley. On at £250000 with local Crawley agent, Taylor Robinson, the Rigtmove link for further details is http://www.rightmove.co.uk/property-for-sale/property-51725176.html.
We’ve recently let a 3 bedroom house in the same area for £1150pcm. Based on this and the purchase price quoted above, you’d get a maximum gross annual yield of 5.5%.
However, realistically speaking if you buy this property you’ll have to spend money getting it into a lettable condition. From the picture above the curb appeal could certainly do with improving! Remember one of our lettings Mantras: Good / excellent condition gives higher rents and lower void periods.
In our opinion, the property would need a complete makeover with new bathroom and kitchen. Walls, ceilings, woodwork etc…should be repainted and then new flooring & kitchen appliances installed. If you spent £10k to £15k on the works required and then let the property for £1150pcm, your maximum gross annual yield would still be above 5%, ranging from 5.2% to 5.3%. Not too bad at all.
If you can negotiate the purchase price down, then so much the better. Don’t be frightened to ask for a price reduction and be prepared to walk away if your figures don’t add up. Another word of warning – keep a tight rein on the renovations costs !
If you’re looking for property investments in Crawley or would like a second opinion on a “doer upper” project, we’d be more than happy to have a chat. Give us a call on 01293 51558 or send an e-mail to crawley@northooduk.com.
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