Tuesday, 17 March 2015

Bargain Hunting in Sunderland (Part 2)

Following on from the recent "Bargain Hunting" post I've just spotted this 4 bedroom property in Hastings Street which provides further evidence of what can be done if you can buy well in Sunderland and are prepared to invest further funds to refurbish a property to a good, lettable standard

This property was bought in April 2013 for £22,000 - unfortunately I can't find any 'before' pictures to compare with the 'after' pictures below but I'm sure you can work out for yourselves the likely condition given the price paid!

The buyer will have spent a decent amount to improve the property and as you'll see below is now 'Ready to Let' 

Based on a total investment of £52,000 (which is based on the £22,000 paid plus an estimated £30k for renovations) the current buyer will be looking to get back much more than the 2.73% average increase in Hastings Street properties over a similar 2 year timeframe

The property is being advertised at OIRO £69,950 and even if it was sold for £65,000 that would deliver a £13,000 return on the investment in 2 years (representing a 25% increase on the total amount spent)

But the story doesn't end there...someone buying it now at £65,000 will now be able to achieve 9.1% Gross Yield, based on an achievable £495pcm rent

Previously letting properties in the Hendon area would have come with added cost & complexity as a result of the Selective Licensing Scheme applied to the area but the scheme is not being renewed at the end of the initial 5 year period which runs out at the end of June this year

Click here for details http://www.zoopla.co.uk/for-sale/details/36213128 

Call us on 0191 567 8577 or email neil.whitfield@belvoirlettings.com if you'd like more information  

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