#TBT - You won't believe this deal!
As you all know I keep a lookout for deals that I believe make an interesting investment opportunity. Part of my whole research process is looking at past sales and performances.
Just over 12 months ago I posted the below property on my blog as a good potential for investment.
http://bexleyproperty.blogspot.co.uk/2016/02/reasonably-priced-investment-with-624.html
What happened back then?
Well lets take a look at the stats. In February 2016 the property, a 2 bedroom first floor flat, was on the market with Able Estates for £165,000 and at that time you would have been looking at £950 pcm in rent. Take into account the annual Service Charge of £1,100 that would have net the Landlord a yield of 6.24%.
Someone actually snapped this deal up for £160,000, thus giving them a yield of 6.43%.
What about in today's market?
Well let's start with the rental income. Presently a 2 bedroom flat in the area achieves £1,000 pcm quite comfortably. This improves the yield to 6.8%.
But what's impressive is the actual value.
In December 2016, Robinson Jackson placed a similar 2 bedroom property in Chandlers Drive on the market at an asking price of £200,000. Wondering why? well a few months earlier a similar property sold for £185,000. Robinson Jackson have secured the sale, but for how much, we won't know until Land Registry update their records.
What we do know is that right now there is a 1 bedroom apartment in the same block currently being marketed by Reeds Rains of Dartford for £180,000 being £20,000 more than what the 2 bedroom sold for a year ago!
Looking at the above figures, I would be confident in saying that a 2 bedroom flat, similar to the one sold last year, in Chandlers Drive would be worth around £200,000, quite comfortably. This means the savvy investor has seen an incredible increase in capital of 25%!
Now that is impressive!
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