Investment Spotlight

Welcome to the second edition of our monthly investment spotlight, where we pick three properties which are currently for sale with Mark Ewin, in and around Bury St Edmunds, which we believe would make a good buy-to-let purchase, Then, using our experience and expertise we give you a run down of the pros, cons and likely rental prospects of each.

Two Bedroom Apartment on Rockingham Road with Sitting Tenant

This two bedroom Apartment is a reasonably modern, spacious middle floor apartment located in this popular residential development off of Southgate Street on the Western outskirts of the Town, within easy reach of both the Town Centre and the A14. The apartment is neutrally decorated and is in good order, with modern fixtures and fittings. The property has two double bedrooms, a good sized open plan kitchen and lounge area and a bathroom with shower above bath. The development has on site parking within the communal grounds. The apartment is fully double glazed with electric heating.  The service charge is currently £1456.00 per annum and the ground rent is £145.00 per annum. The property is leasehold, with the benefit of a 999 year lease, which started in 1993 meaning there are 970 years remaining on the lease. 

The property has the advantage of coming with an established tenant who has occupied the property since 2019 on an Assured Shorthold Tenancy, and is currently paying £725.00 per calendar month. Additionally as an existing managed property it is fully compliant with all relevant legislation. So at £160,000 per calendar month this could be a straightforward investment, giving a gross yield of 5.44% or a net yield once ground rent and service charge are taken into account of 4.44% (not including purchase costs).

Please contact Hazells directly if you are interested in more information on this one, as it is being sold by one of our existing landlord clients.

Three Bedroom Bungalow On Mandeville Road

Bungalows are always a popular choice, and this detached bungalow is ideally located on the popular Western side of the town. With three bedrooms and a large garden, it would make a lovely home. The property has been well kept and updated, meaning there would be little to do for any investor, and it would be attractive to a variety of tenants. Although the EPC is a “D” rating, being only two points off of a “C” its shouldn’t be too difficult to upgrade this if necessary in the future.

We would expect a rent of between £1500 and £1600 per calendar month to be achievable in the current market which based on a purchase price of £350,000 would give a gross yield of over 5%.

With a broad appeal, and very little if anything to be done to prepare the property for rental, this could well be a smart choice.

Two Bed Family Home in Elmswell

This two bedroom family home on Eastern Way in the well served village of Elmswell, could well be a good investment for those with around £200,000 to spend. The property has been improved with addition of a conservatory making the kitchen into a much larger kitchen diner, meaning the lounge can be fully utilised without compromise. There is a fully enclosed rear garden and garage en-bloc, The EPC rating of “C” makes this all the more attractive as a buy to let investment.

We anticipate a rent of between £800 and £850 could be achieved, giving a gross yield of 4.8% at the lower end or 5.1% at the higher.

If you would like further information on any of the properties above, or would like to arrange a viewing, please contact Mark Ewin Estate Agents on 01284 217 530

As always, if you would like specific advice on any aspect of lettings please do contact either Chris or Andrew on 01284 702 626