1-Bedroom Flat in Central Edinburgh
The Numbers:
Purchased: 2021 for long-term rental
Purchase price: £230,000
Total acquisition cost*: £265,000
Total cash invested: £140,000
LTV: 63%
Net annual yield**: 6.3% pa
Forecast predicted compound growth over next 5 years***: 23.4%
* includes stamp duty, survey, mortgage arrangement fees, searches, conveyancing, cosmetic upgrade and all furnishings for letting out
** from rental income after deductions for agency fees, boiler maintenance, safety certificates, insurance and a sink fund
***as per Savills data
In Brief:
Assisting the client in sourcing, purchasing and renting out a flat in central Edinburgh.
Services provided: Consultancy, Search and Find, Property Enhancement, Property Staging and Tenant Search and Letting.
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The client was a first time buy-to-let investor with a heavy workload and no time, nor the necessary experience or expertise, to shortlist suitable properties for a sound, long term investment. My brief was to source and advise on the viability and potential future financial performance of suitable properties currently for sale and then to provide a financial overview of all costings associated with the purchase. Furthermore, I was tasked with collating market data for analysis to provide realistic current and projected rental values, predicted compound capital growth and details of comparable investments to calculate a realistic return on investment should the property be successfully acquired.
The property was in a semi-prime location with excellent potential for capital appreciation and in an area very desirable to professional renters. The condition was extremely tired and the existing furnishings, light fittings and storage of low quality and poor design. The kitchen and the bathroom required a signifiant upgrade and there was an ‘awkward corner’ in the living room which required attention to become an attractive feature as opposed to redundant space. Please see the rather lovely over-reach reading light and accompanying sumptuous velvet chair and footstools - all inexpensive purchases but successful at creating a clearly defined space in a a formerly unused area. I enjoyed combining a colour pallet of brilliant whites and greys with this vibrant ochre as, as seen in the attached photographs, it really ‘popped’ in the marketing material.
I designed and managed the installation of a new kitchen and employed a glazier for plentiful mirrors throughout to create the feeling of - SoProperty's mantra: cleanliness, space and light. The entire apartment was painted brilliant white and luxurious accessories, designer curtains and high quality light fittings completed the transformation from unappealing student accommodation to a high quality, clean and spacious rental property. Professional photos and a keenly worded advertisement attracted over 30 enquiries in the first 48 hours of marketing and we negotiated a 2 year tenancy on very attractive terms and 3 month’s rent in advance for the landlord.
