The flat is in need of modernisation, in order to bring it up to the expected standard for the local market, it will stand you in another £25k for the renovation with the holding costs. Based on this the total value of the investment will be £524,000, the rental that you can achieve will be £1600 per calender month , that will give you a net yield of 3.67%.
Although the figures are a little on the lower side, the market is rising and theses prices are being achieved. Bear in mind that in the second year, some of the costs will be out of the equation, such as stamp duty and solicitors fees, so that will improve the yield by some degree. Having said that, this flat will sell and pretty quickly i suspect, so if you fancy taking on a project, then here it is !
On the market with Martyn Gerrard in Kentish Town at £475,000 with a long lease.
http://www.zoopla.co.uk/for-sale/details/37829848
If you are looking for an agent with experience that can help you find the right tenant for your property, then contact us to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based on Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. The kettle is always on.
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