Investment Spotlight

Welcome to the fourth 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 at Forum Court with Sitting Tenant

This two bedroom apartment is a modern and spacious second floor apartment located in this popular and secure residential development opposite the train station on the outskirts of the Town. The apartment is neutrally decorated and is in good order, with modern fixtures and fittings. The property has two double bedrooms, one of which has an en-suite shower room, a good sized open plan kitchen and lounge area and a family bathroom with shower above bath. The development has on site parking within the communal grounds and is fully gated meaning that only residents have access by foot or by car. The apartment is fully double glazed with electric heating which is centrally controlled by a thermostat.  The service charge is approximately £1800.00 per annum and the ground rent is £270.00 per annum. The property is leasehold, with 184 years left on the lease.  The EPC rating is “C” which means there should be no issues continuing to rent the property in the future.

The property has the advantage of coming with existing tenants who are both employed by the NHS, they recently took occupation of the property on an Assured Shorthold Tenancy, and are currently paying £900.00 per calendar month. Additionally as an existing managed property it is fully compliant with all relevant legislation. So at £180,000 this could be a straightforward investment, giving a gross yield of 6% or a net yield once ground rent and service charge are taken into account of 4.83% (not including purchase costs).

Please contact Hazells directly if you are interested in more information on this one, as it is being offered for sale exclusively by ourselves on behalf of one of our existing landlord clients. Further details are contained in the brochure which can be read by clicking here.

Three Bedroom House On Cranesbill Drive

This is another property which should make for a straightforward investment, as it looks to be in a good condition and ready for tenants to move into. This three bedroom link detached family home on Cranesbill Drive is located in Moreton Hall, which is popular with both local market and USAF renters. With two double bedrooms and one single it would certainly appeal to families and in our opinion would rent very quickly. The EPC is currently a “D” rating, however upon closer inspection it is only one assessment point away from a “C” rating, therefore this should easily be achievable with minimal outlay.

We would expect a rent of between £1350 and £1400 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 between 4.6% and 4.8%.

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

Two Bedroom House on St Peters Court

Something with those who have an appetite for an investment which needs some refurbishment before hitting the rental market is this two bedroom terraced house on St Peters Court, which is a quiet close off of Hospital Road between the Town Centre and the hospital. With some updates, including a new bathroom and ideally a new kitchen, it would be a desirable rental property, especially given its proximity to the hospital for NHS staff. The EPC rating of “D” could also be improved upon, with the replacement of the older style storage heaters to more modern versions, which would be a worthwhile upgrade due to their age anyway.

We anticipate a rent of between £900 and £950 could be achieved, giving a gross yield of 4.91% at the lower end or 5.18% 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