Whilst Sunderland is primarily known as a place to get decent Yields, there are certainly opportu...
Whilst Sunderland is primarily known as a place to get decent Yields, there are certainly opportunities for impressive Capital Growth if you know how to spot a bargain and are prepared to put the work in...
Take this pretty unremarkable two bedroom terrace in Hartington Street, Roker (SR6). It was bought in November 2012 for £60,000 and in fairness it did need renovation throughout
Fast forward to October 2014 and it sold last year for £105,000 - an impressive 75% increase in a little under 2 years!
It's even more impressive when you consider average prices in Hartington Street have only increased 4.76% over the same time frame!
Whilst it certainly will have required a decent renovation budget it won't have cost anywhere near the £45,000 increase in 23 months, I'd suggest it can't have cost more than £25,000 all-in, meaning that the owner will have made £17,000 more in 2 years than if the property value had just increased in line with the market!
In this case the owner decided to sell and cash in but had they rented it out instead, based on a very achievable £495pcm and our estimated total investment of £85k (£60k purchase price + £25k for renovations) it would have returned a healthy 7.0% Gross Yield