Looking for a bargain BTL investment and working with a limited budget ?
This 2 bedroom apartment was built in 1976 and is located close to Dunstable town centre, the theatre, leisure centre and supermarket and is about to go for a bargain offer price of £70,000.
I was asked to look this apartment over when it was repossessed by the mortgage company earlier in the year. We also marketed a similar apartment in the block last November.
This property was first marketed at £94,950 and in June was reduced to £89,950. It is now on the market at £84,950 but as it is repossession it is now showing as having an offer of £70,000.
Is this a real bargain? Let’s look at the history of other apartments in the same block over the past 8 years. In 2005 these 2 bed apartments were exchanging for around £95,000. In 2007 two of these apartments exchanged for around £115,000. Following the house price crash in 2007/2008 these properties had recovered enough in 2010 for one to sell for £105,000. In 2011 one sold for £95,000 but in 2012 the price for one of these had again reached £105,000.
As I mentioned earlier in my article we marketed one of these apartments in November 2012 for £575pcm. Working at a purchase price of £70,000 and a rental figure of £575 the purchaser of this apartment could be seeing a base rental return of close to 10%
The base rental yield does not include Ground rent and service costs which are unique to each development.
If you are thinking of purchasing an investment property and would like some free and impartial advice please call or visit our shop where we are only too happy to help.
