This weekend I’m straying a little bit out of my usual area to look at a property in nearby Tottenham.
I still really like Tottenham, it has a definite buzz about it so it’s a great place for young professionals and of course has the benefit of the underground.
This property is advertised online by IC Property as a three bedroom maisonette with an asking price of £204,995. It’s arguably just a two bedroom property but the kitchen/ diner is large enough to be the main living space, it just needs less bulky furniture!
If let to a single family this property would achieve somewhere in the region of £1,400 pcm which would lead to a gross yield of 8.2%, which is great.
The flat seems to be in good condition, although there’s only 4 pictures and none of the bathroom which I find a little suspicious.
If I was to buy this flat I would probably spend a little money to make it a top-notch property including a new modern kitchen and bathroom, neutral décor, blinds and good quality furniture. I would then advertise for professional sharers. Individual rooms in Tottenham tend to cost around £500 – £650pcm. By spending say £5,000 smartening the flat up, and letting the rooms individually, it could achieve let’s say £1700pcm which would bring a gross yield in the region of 9.7%.
There may also be changes necessary to adhere to Haringeys HMO fire safety requirements and it’s worth remembering that HMO’s do generally have higher management and maintenance costs. However, either way, for yields over 8% this flat looks quite interesting,,,,,,,,,,, if of course you have £204,995 in cash available!
It’s important to understand why the seller is looking for a cash buyer, do they just want a quick, secure deal or is there something about the property that makes it difficult to finance? And if there is a problem would it affect the flats letability?
Definitely need to be careful here but the need for a cash buyer will also mean the numbers of interested parties is greatly reduced and it’s more likely that there’s a deal to be done on the asking price!!
At Belvoir Lettings Enfield we don’t sell property. We are lettings specialists, so we are perfectly placed to provide independent help and advice to investors and londlords in London Borough of Enfield and surrounding areas.
While we do not specifically recommend properties to purchase we will happily share our opinions based on our experience.
