As regular readers will remember that in December I published part one of a two part of an article detailing the actual process and complete costs of buying and then letting a buy to let property in Dundee.
Just to hit the highlights for those who don’t want to read the whole thing again. A landlord of mine purchased a one bedroom flat on Clepington Road at a cost of £60,000. At the time we estimated that the costs of renovation etc would be around £5,000 and that it would rent for somewhere between £360 – £400 per calendar month.
Well I am delighted to announce that the purchase eventually went through and the work started in late December. The property was marketed in mid January and has now been let.
The complete costs of the purchase, renovations etc are outlined below, as are the details of the actual works carried out.
| Item/Work | Total Cost (Inc VAT if applicable) |
| Purchase 3 x wall mounted Programmable Gel Heaters | £970 |
| EICR (Wiring check) & resulting upgrades, replace fuse board, remedial works, install heaters, re wire shower, fan heater in bathroom, replace some lights, fire detection sensors etc. | £1,300 |
| New kitchen cupboard doors, handles, worktop, sink unit. Upper units had to be replaced completely. | £657 |
| Remove old/install new kitchen doors, upper units, worktop, sink. Buy/fit splashback, extractor hood, toilet seat and other minor repairs round flat. | £850 |
| Re decorate throughout all walls, paintwork etc. | £730 |
| Replace lounge and bedroom carpets. | £465 |
| Landlords insurance | £215 |
| Clean flat. | £100 |
| Gas safety inspection | £85 |
| Portable Appliance Test | £45 |
| New EPC | £80 |
| TOTAL | £5,497.00 |
We had a new Energy Performance Certificate (EPC) carried out as the property had very little heating when it was bought and the EPC was an E, after the new electric heating was installed it went up two levels to a D.
So the total costs including the purchase price, solicitors fees, renovation, sundries etc was £66,250, the achieved rent is £375 per month giving a rental yield of (drum role please) 6.79% ….. Not bad I think, certainly a lot more impressive than anything you’re likely to see in interest rates and it doesn’t even include capital appreciation.
So if you’re thinking of getting into buy to let or of letting out your current home whilst working away, then please don’t hesitate to get in contact with me. I’m always happy to discuss the market, any properties your thinking of buying or just chatting about property in general. nick.horan@belvoirlettings.com
