8 Flat project – develop – sell – invest?Make Text Bigger
We have a commercial building which we retail from and after 2.5 years we have finally received full planning to build 6 new flats and convert 2 above our commercial building. It’s basically an extension on the current commercial building with parking at the rear.
Retail is a business we no longer want to be in. We have a complete build cost of 250k which includes all finishing and fittings. These are all 1 beds and our 2 small will achieve 500pcm and the rest 550pcm, commercial building 20k pa.We have an existing mortgage of 93k.
Do we continue to develop (financing is not a problem) or do we sell everything and then re-invest obviously as a cash buyer. My friend is snapping up 80k properties 25% deposit and achieving £550/645 pcm rent. The gross rental is 71,600 pa we would need to achieve somewhere north of 600k to sell, which would give a yield of over 8% to a investor.
What would you do?
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