Monday, 11 January 2016

'Needs Work' 2 Bedroom High Barnes Terrace That Might Suit A Flip?

This 2 bedroom terrace is new to the market but has the potential to be a profitable Buy to Sell or "Flip" property in addition to a long term rental, if you can get it at the right price 

It has all the signs of being a property where an elderly owner has passed away or has been taken into residential care, the carpets & decoration all suggest this, as does the 'No Onward Chain'


It's on the market for OIRO £94,950 which in itself is pretty cheap, given the 3 properties sold on this street last year sold for an average of £122,000 and the highest went for £127,000 (although it was a 3 bed)

Dowen are selling it so click here for details http://www.rightmove.co.uk/property-for-sale/property-38934252.html  and contact Dowen to arrange a viewing

It could work as a rental property, following refurbishment you would get around £495pcm as a 2 bedroom property as it's a sought after street, however the yield would be just-about-OK at around 6%

When Buying to Sell you'd be appealing to a different market (usually the First Time Buyer market) so I'd suggest you'd need to spend a little more on refurbishment to bring it to a higher standard

With this in mind to be worthwhile exercise I'd suggest you would need to negotiate pretty hard on the price and you should be aiming to pay no more than £85k, with an exit in mind of selling at close to the £125,000 stamp duty threshold - this might sound a tall order but it may be that the vendors circumstances or those dealing with the estate) may wish for a quick sale and are prepared to sacrifice a little on price to achieve this 

If you'd like to discuss this, the Buy to Sell strategy or any aspect of property investment in Sunderland call me on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

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