Monday, 5 October 2020

BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Tangmere, £150,000, 6.0% yield

1 bed flat in Tangmere
Listed for sale on 10/03/20 @ £180,000
Now = £150,000
Rent = £750pcm
Yield = 6.0%
Last sold for £124,950 in 2016 (+20% in 4 years)

This one-bed flat in Tangmere could be a sound entry-level buy-to-let property (yes, £150,000 is 'entry-level' for the local area).

It's been modernised by the current owner, so there is nothing that appears in need of upgrading prior to letting it to tenants. It has a good-sized open-plan living area with a modern kitchen and neutral decor. There's then a double bedroom and a family bathroom. Bonuses include an upgraded heating system (albeit it's all electric rather than gas), double glazing throughout and a garage in a nearby block.

Although it's a flat, it has a long (155 year) lease and minimal ground rent and maintenance obligations. That means nearly all of the £750pcm rent I'd expect to achieve for the well-presented apartment isn't lost to the freeholder.

That's a very decent 6% rental return based on the current £150,000 asking price; an asking price that has been reduced by £30,000 since it was first listed in March. The current owner bought it for £124,950 in 2016, but it seems the bulk of that 20% increase in four years has been spent on the flat itself, rather than acting as profit for the current owner.

The property is on the market with Purplebricks and full details can be found on Rightmove via the following link: 

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