The shock of last weeks Brexit poll hasn’t stopped properties coming to market and trawling the listings this morning I came upon this little one bedroom house in Southgate being marketed with Connells.
Quite clearly it needs work, there is no denying that a new kitchen, bathroom and redecoration are all urgently required. I would also suggest changing the single glazed windows to double glazed and installing a shower are necessary. But being a one bedroom back-to-back house means there isn’t a great deal of house to refurbish and it has already been priced to take the works into account. There is currently a one bedroom house in Langley Green on the market for £30,000 more at £200,000. With this house being located in Southgate and within walking distance of the town centre and station it would achieve a rent of £800 once the refurbishment is complete – that’s a 6% yield. I would imagine that most first time buyers would be put off by the scale of the works required and if the current owner wants a quick sale they may have to sell to an investor/landlord and be prepared to bargain on the price. Don’t forget that an investor must be prepared to pay a stamp duty bill of £5998 to purchase the house whereas the first time buyer will only be paying £899.