#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!

Comments

Popular posts from this blog

79% More Bexleyheath Home Owners Wanting to Move Than 12 Months Ago

Bexley’s 826 Mortgage Time-Bombs?

Is Bexley Borough still a Great Place to Invest?