- Annual ROCE of 41%
- 20% Below market value
- £27,500 income pa
- 17% yield
- Initial investment returned within just 3 years
- Opportunity to add further value
Sourced present this beautiful 4 bed semi-detached stone property with a large garden, priced 20% below market value. The property is in an excellent condition and only in need of a light cosmetic update to make it suitable for a holiday let. We are dealing directly with the vendor and they are looking for offers in excess of £155,000. A similar but slightly smaller property sold on the same street in 2018 for £175,000 and the highest price for a 3 bed on the street was achieved in 2019 at a price of £290,000. The property has been recently valued at £195,000, making this a fantastic opportunity to purchase at below market value.
The plan for this property is to turn it into a holiday let by providing a light cosmetic update and furnishings. The property is priced below market value and we believe the property will be able to be refinanced at a valuation of around £195,000, leaving around £33,000 in the property. The yearly ROCE is 41%, meaning that the £33,000 left in the deal will be recouped in just 2 and a half years!
There is also opportunity to add further value by extending the property as there is ample space to the side of the home. This would allow for a higher revaluation and potentially, allowing more money to be pulled out initially.
Purchase Price: £155,000
Stamp Duty: £5,500
Additional Costs: £2,000
Sourcing Fee: £4,000
Rental Income: £27,504 pa
ROCE: 41% pa
The property comprises of a living room, kitchen, dining room/4th bedroom, utility room, family bathroom and 3 bedrooms. The property benefits from beautiful views of the countryside and conveniently located close to the village shop, pub and restaurant.