Friday's Deal of the Day - 2 Bed of Terrace, Hadley, Telford - Potential Redevelopment - Gross Yield from 8 -14%!

 

Good Morning Landlords...

 

 

On with Butters John Bee for a guide price of £65k this property will be sold at auction on Mon 19th Oct 2015. Check the catalogue for viewing details and more information if you haven't purchased at auction before goo.gl/TWTKyd

Looking at the configuration of this property it looks like there is the potential to improve the back of the downstairs and merge the kitchen and the dining room to create one open space. There's increase demand from tenants for open living space, and tenants perceive added value if you have a downstairs toilet and utility room.

Rental for a family dwelling should be around £575 pcm. So, and this is a bit on an assumption, if you purchased the property for £80k and the refurbishments costs were 15k the gross return could be around 8%. My experience tells me that properties which are refurbished to a high standard attract good tenants, which makes life so much easier!

However, there's demand in the Hadley / Trench area of Telford for room only options. Conversion of this property to create 4 rooms can be done but the refurbishment costs will also be higher. There are more pitfalls to be aware of, but the returns increase with rooms renting from £350-400 per room per month or £1400 - £1,600 pcm for full occupancy per month.

As always there are advantages and disadvantages to the above options, but if you would like any help or support with your next investment please drop me a line on 01952 306 444