Last year I highlighted the 3 bedroom house in Chiltern Close, West Green that was proving slow to sell. The agent had reduced the price from £240,000 to £225,000 to broaden its appeal. I commented about it on the blog and suggested it might make a decent investment purchase. Today I have seen local agent Connells advertise a similar property in the next road along but at a rental price that is £150 per month higher than my original top estimate for the house in Chiltern Close.
Six months ago I estimated that the house in Chiltern Close could achieve a yield of 5.7% but that has turned out to be a very conservative estimate. In the end the house in Chiltern Close sold for £224,000 but would have required a minimum of £6000 for a refurbishment in an attempt to attract the best tenant. Even with allowing for the cost of the refurbishment works the current rental asking price of £1250 pcm reveals a yield much higher than I anticipated at 6.52%. The rising rents have helped to increase the yield but when I spot any other opportunities like this one I’ll make sure to add them to the blog.
|St Peters Church - West Green - Crawley|