Yes I thought that headline figure would get your attention. This one is a bit of a departure for me in that it’s an auction property, the first I have highlighted.
Now I’m sure most of us have watched Homes Under the Hammer but it’s not an area of investment that I have explored before, so I thought why not have a look.
Now this one http://www.auctionhouse.co.uk/scotland/auction/lot/79515 is a two or three bed maisonette in Lulworth Court. As anyone familiar with this area will know these are non-standard construction properties on the outskirts of Dundee. I’ve let a number of properties there over the years so know it quite well.
The internals look fine but even more so than any other property investment, because its an auction property I cant emphasise enough that you must have a look at it and do your research.
That said, whilst its not a high rental area nor, due to its non standard construction is it an area designed for capital appreciation, it does rent reasonably well and with a guide price of £24,000 and a valuation of £35,000 it doesn’t sound unreasonable. I have rented identical properties in this area and would estimate the rental at say £350 per month which if you get it for the lower figure gives a gross yield of just over 16%, even if you had to go to say £30,000 its still a yield of just under 13%.
I would say that’s strong by anyone’s standards and provided you plan and budget carefully I see nothing wrong with this type of property investment.
