Monday 13 April 2015

Ready made investment in Chelmer Village, Chelmsford...

Good morning property hunters. Had my eyes and ears to the ground to see what tasty little property treats are about and have got a few that I will be posting out this week. This one particularly caught my eye as it is being sold with a tenant in situ. Now, the only thing missing from the agents details, is the rent that the tenants are currently paying, so a call would need to be made to them to check that out. However, this property has the potential to gross you a 6% annual return. 

The asking price is £135,000 and similar properties are renting in the area for £675 - £695 pcm, even basing it on the lower figure, it's still 6%. If the current tenants are paying less than that at the moment, then of course the yield will reflect, however I would expect it to be fairly close to my estimates. When the renewal comes up, you can agree a renewal at a market rent or re-advertise for new tenants, and then bang, hello 6% returns! Much better than any bank.

It's fairly straight forward when buying a property with a tenant in situ, the tenancy that they have running, will continue until it's expiry regardless of the owner and if you have a good agent managing it for you, they will be able to advise the best course of action at that point.

I'm always available for a chat if you fancy it, so come on down for a cuppa.

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