1-Bedroom Flat in Central Edinburgh
The Numbers:
Long-term rental investment owned and managed for 15 yrs+
Net annual return*: 21.5% pa
Return on Investment**: 234%
Forecast predicted compound growth over next 5 years***: 23.4%
*from rental income after deductions for agency fees, boiler maintenance, safety certificates, insurance and a sink fund
**amount the cash investment has increased over investment term, assuming sold today before tax and legals
***as per Savills data
In Brief:
Location, location, location! An outstanding rental investment; city centre, generously size, but a third floor walk up on a busy road. It was purchased below market value for the area and generates a strong rental yield due to prospective tenants attracted to its desirable city centre location and generous accommodation.
Services provided: Consultancy, Search and Find, Property Enhancement, Property Staging, Tenant Search and Letting and Property Management.
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The flat is 10 minutes’ walk from some of the best amenities Edinburgh has to offer, located on an artery road leading to the city centre. At the time of purchase this was a tertiary location which, in recent years, has benefited from significant investment in amenities and transport links.
I completely redecorated, adding new flooring, new bathroom and a newly designed kitchen, and invested in high quality double glazing to minimise road noise. High quality furnishings along with professional photography for online marketing attracted plenty of viewings. A balanced configuration and high quality presentation has secured good quality long-term tenants and back-to-back tenancies over the last 15 years. Furthermore, gentrification of this area has resulted in it becoming more desirable to both owner occupiers and tenants and, as a consequence, there has been a significant increase in capital values.
