BTL Deals of the Week #4 - featuring a 5-bedroom house in Walthamstow!
Scouring the market for quality investments can be daunting and, at times, overwhelming. In this week's Buy To Let Deals video, Kristjan reviews three listings, one for each of the price brackets set out: up to £500k, £500-750k, and £750-1m. The first property is a 3-bed flat just a stone’s throw from West Ham Park, followed by another 3-bed by the canal in the highly desirable area of London Fields. The last featured property this week is 5 bedroom freehold house available in Walthamstow.
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Up to £500k
Located a stone’s throw from the green space of West Ham Park is this 3-bed. The local market should see rents achieved on this of £1750-2k per month which means a gross yield in the region of 7%. Admittedly you might need to invest a little to improve the cosmetic standard of the flat and upgrade its furnishings but this would be money well spent. The agent hasn’t disclosed any tenure information (I would expect a flat to be leasehold) as such, you need to ensure there is enough years on the lease (if applicable) and that the Ground Rent & Service Charges are at a reasonable level. However, this otherwise looks like a good rental investment.
Another 3 bed- this time an ExLA property located on the Regents Canal with both Broadway Market & London Fields a very short walk away. This highly desirable area means that a property like this should be highly desirable to tenants, particularly as it also benefits from outside space. In the current market I wouldn’t be surprised to see this property achieve £3k or possibly a little more, presenting a gross yield of around 5.5%. As tenure is not available on the listing you do need to ensure there are suitable years left in the lease. However, being ExLA the ground rent is usually very low (£10-50) and Service Charges are also usually below average. The main matter for caution on ExLA property is any pending major works- which can prove costly. Do make sure there are no proposed works in the pipeline- if there are, then ensure there is a clear mandate from the offset as to what these are expected to cost and who (seller or buyer) will be expected to meet these.
On the basis you could secure the applicable licensing (HMO or Short Let- of course you could target families only to negate this need) then this looks like a great instant return property. I would expect a 5 bed in this area to achieve at least £3500 per month, but this could easily be closer to £4k if marketed right. That would result in a gross yield of around 6%. As a Freehold property you have no concerns over lease length and no Ground Rent or Service Charge costs to meet. A desirable location, with the Lea Valley Park & Walthamstow Wetlands Centre nearby as well as plenty of green space this is a great spot for families or sharers alike. Apart from a lick of fresh paint this property looks ready to go!