Barnsley Project

When searching for a property deal there are various criteria that an investor will look for to ensure that the investment meets their specific needs. Each investor and each investment will have their own key performance indicators, and accordingly have a list of boxes that they will need to have ticked before they decide to purchase a property.

Therefore what we are looking for is subjective, but we think this particular deal will appeal to almost anyone as it achieves a fantastic 37% return on investment making it a unique opportunity given the current volatility in the stock market and such poor interest rates from banks.

So, what makes this deal so attractive? Lets look at the figures:

We purchased the property as a three bed house, refurbished it with a new kitchen and bathroom, turned the living room into a bedroom, added an ensuite bathroom to one of the bedrooms and now rent out the property as four individual bedrooms. This obviously enables us to achieve more rent than if we let is as a single unit - (£1,520pcm instead of £425pcm). However the running costs are higher and management more niche than with a standard BTL.

Before

After

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Doncaster Project

2016 has been a tumultuous year for Property Investors. Our previous Chancellor, George Osborne, dropped a bombshell when he announced that no longer could you offset your mortgage repayments against your rental income, then even more salt was added to the wound with an increase in SDLT and future mortgage restrictions and then of course we had Brexit. It hasn't been easy, or in fact sensible, to stick to one set strategy with all of these changes happening and we have been waiting patiently before rushing into any purchases, doing our due diligence and keeping across everything with thanks to all the fantastic resources out there (Progressive Property, YPN MagazineProperty Hub Podcast, etc).

A strategy that almost any Poperty Investor will jump on however, regardless of changes in the market, is the infamous Money In, Money Out deal. These deals, which enable someone to cleverly  pull out their investment by either purchasing below market value or by adding value, aren't always easy to find so when we found this baby Buy To Let we were really pleased.

Here are the figures:

So, essentially we have bought a three bed house for £5,500 which makes us £220 a month. That is a whopping 48% Return on Investment (ROI)***

Now on to the next project..

* These figures are based on today's mortgage interest rates. As property is a long term investment it is important to stress test with interest rate rises. i. e. @ 5% interest, cash flow: £130 pcm & ROI: 28%

**Figures rounded up

*** Annual rental profit divided by private finance invested

PHOTOS: BEFORE & AFTER