On today’s Rightmove travels, I came across this property. It is a studio apartment, so the living and sleeping room is all one space. One thing you find with studios are that the returns are usually pretty good, at the higher end of the spectrum for this area. This is because generally, they are quite a bit cheaper to buy and the rents, although at the cheaper end of the scale are comparatively quite good.
This one is a pretty good example, on the market for £112,500. The details that the agent has on the website eludes to the fact that it may be sold with a tenant in place if an investor buys it, however this isn’t clear, so you may need to check this with the agents. There is no mention of what rent has been achieved, but I would expect to achieve in the region of £500 pcm.
Based on these figures you are looking at a gross yield of 5.3%. If you can also purchase it at a slightly lower price, this would make the return even better.
For more advise on this example or any others that I have posted to this blog, please drop me a line, I am happy to help where I can. stephen.frost@martinco.com
