Buy to Let - 1 Bed Flat - Peddie Street, West End, Dundee - Gross Yield 6.87%
Now this is an interesting one with some potential.
Its a small one bed flat with combined lounge kitchen, its in a great location for the Universities, Ninewells, City Center etc and is on the second floor of a block with secure entry, http://www.tspc.co.uk/1-Bed-Flat-For-Sale-Flat-22-91F-Peddie-Street-Dundee-DD1-5LX. Its being offered by Thorntons.
Now looking at the photos and the description I feel this would be a good one for a landlord who wants to add value both in capital and rental terms. It would rent pretty much as is but I am sure you will agree it would benefit from some basic TLC particularly in the bathroom, kitchen and possibly heating/insulation departments.
However none of these are massively difficult but if done and assuming the block is in reasonable condition it would be a significant upgrade to this flat.
For the rental assessment I have deliberately been conservative with an estimate say £375 per month with an asking price of £60,000 that’s a yield of 6.87%. Capital appreciation in the area is running about just over 12.5% over the last 5 years.
Now I’m not sure how long this one has been on the market but given the upgrade that I feel it needs I would be going for the ‘cheeky offer’, after all what have you got to lose?