Investment Spotlight

Welcome to the fifth 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.

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Two Bedroom House On Fen Way

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This two bedroom house is located on Fen Way, which is part of a popular modern development just off of Spring Lane at the bottom of Springfield Road. The property is an end terrace property, tucked away in an excellent location. Internally the property looks to be in a good condition with some updates having been carried out. Whilst there is scope for further updates to really maximise its rental potential, it would also rent well in its current condition.

Hazells already lets and manages the property at the other end of this terrace, therefore we have a good knowledge of the area and current rental value. The area is popular with both local market renters and visiting airmen from the USAF, and should rent for between £1000 – £1080.00 per calendar month. Based on the asking price of £260,000 this gives a gross yield of between 4.6% and 4.98%.

The EPC Rating is favourable too, being a “C” rating, avoiding any potential issues in future.

https://www.markewin.co.uk/properties-for-sale/property/11700598-fen-way-bury-st-edmunds

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Three Bedroom Period Property on Southgate Street

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This stunning three bedroom period home located on Southgate Street is full of character and would be a desirable rental property for those looking for a larger period property close to the town centre. This would very much be something which would appeal to the USAF market, especially those looking to spend their time in the UK living in a property of this nature. Whilst being of an age, the property has clearly been looked after well, and therefore represents a “turn key” investment.

The property should attract a rent of between £1700 – £1800 PCM, which based on a purchase price of £400,000 would give a gross yield of between 5.1% and 5.4%, which is not a bad return.

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. One note of caution is that the EPC rating is (as can be expected with older construction) a “D” rating, a prospective investor would need to factor in some possible expenditure to improve this prior to the anticipated changes to the minimum standard to rental, which is likely to happen in 2025.

https://www.markewin.co.uk/properties-for-sale/property/11677058-southgate-street-bury-st-edmunds

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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 Hazells 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).

https://www.markewin.co.uk/properties-for-sale/property/11716538-forum-court-bury-st-edmunds

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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