Thursday, 11 June 2015
Fantastic house in Burley with potential for 10% yield
This four bed house on Beechwood Avenue is located in a prime location for professional renters. Its located just a short walk away from Burley train station. A trip to Leeds city centre takes less than 10 minutes and it's also a short walk away from local shops, cinema complex, gym, bars and restaurants.
Whilst in a great location this is a typical example of one too many rooms being squeezed into the space. Whilst it's understandable to want to fit in lots of bedrooms to try to maximise your rental income, in reality it's no big surprise that small bedrooms struggle to let. If you were to utilise the space in the attic better and remove the small bedroom you could create one big bedroom with an en-suite. As the property already has two other bathrooms located next to the other current bedrooms you would be able to create an all en-suite property without spending a great deal.
This would then create a fantastic property and as it's in a great location there would be no problem in getting it fully let and you're likely to achieve an annual rent of £14,040. Now, whilst the advert suggests it's already achieving an annual rent of £16,120 this also includes the tenants bills so in reality you'd be looking at an annual rent of somewhere in the region of £12,376 without bills.
As the rest of the property is already in pretty good condition I'd imagine you'll probably have to spend between £8-10k to do it all up. If you managed to get the property for around £130,000 and then factored in the refurb costs you'd then be looking at a return of around 10%.