Good looking investment opportunity but watch out - it's for sale by tender!
Now I'm generally not the biggest fan of studio flats, yes they do get a lot of interest but they also tend to have quite high turnover rates, which may well lead to more void periods and higher maintenance costs.
However, while I sat stunned looking at the new build studios in Silver Street, Enfield Town which are on the market for just under £230,000 <gulp>, I came across this interesting flat in Linwood Crescent .
On the market for OIRO £135,000 it may well not be in as convenient or popular a location as it's new build neighbours but for an investor the returns are more attractive.
Yes, for the new build you could probably achieve a premium rental income of £1000 pcm leading to a gross yield of 5.2%. But for the Linwood Crescent flat you could still achieve a rent of £800pcm and a gross yield of 7.1%. Plus of course your initial outlay would be much lower.
As an investment this flat does look promising, however it's worth looking at the small print - 'SALE BY TENDER'.
Sale by Tender works by passing the costs of the sale from the vendor to the buyer. The vendor pays an admin fee of around £150 + VAT to register their property and potential buyers submit sealed bids .
The successful buyer is then liable for a fee to the estate agent, often called an 'introduction fee', of around 2% +VAT.
Make sure you factor this fee into your costs before you think about submitting a bid!
Belvoir Enfield don’t sell property, we are lettings specialists, but we do guide people based on our experience as to what might make a good buy to let property investment in the London Borough of Enfield and surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants.