3-Bedroom House in South London
The Numbers:
Purchased: 2020 for long-term rental
Purchase price: £725,000
Total acquisition cost:* £755,000
Total cash invested: £230,000
LTV: 70%
Net annual yield:** 5.2% pa
Return on Investment:*** 6.9%
Forecast predicted compound growth over next 5 years:**** 22.1%
* 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
*** amount the original cash investment has increased over investment term, assuming sold today
**** as per Savills data
In Brief:
A fabulous opportunity to acquire a larger than average, 3 double bedroom property in a very desirable area for professional sharers. We acquired it at 20% lower than comparable properties in the area due to timing of purchase as well as it being a new build property instead of the more popular Victorian conversion so prevalent in this area.
Services provided: Consultancy, Search and Find, Property Enhancement, Property Staging, Tenant Search and Letting and Property Management
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This is an excellent buy to let investment offering over 1100 sq.ft in balanced accommodation including 3 double bedrooms plus a study, all less than 7 minutes walk to Clapham Junction. This entire area has been identified in the Local Plan as an area eligible for public funds for regeneration. Formerly in a tertiary location the property will benefit from any local enhancement as the surrounding area is gradually gentrified. The property is well presented and of a sensible layout. It provides excellent rental accommodation and will outperform other comparable properties in the area in terms of return on investment due to having been such a strategic purchase in the first place.
