Sell as an investment property?
We have numerous properties that we successfully rent, and have done this for many years, but one of the properties, which was for many years our family home, has a mortgage which has only a few years remaining. It is a beautiful detached chalet bungalow, 4/5 bedrooms, 2 bathrooms, set in a beautiful cobbled village backing onto a linear park. It has a secluded garden, west facing mainly decked.
It is currently let for £1,400 pcm until next year on a long term let, and it is currently valued at around £470,000.
My question is whether we could sell this as an investment property, does anyone have any experience of doing this?
Any help or advice would be welcome, and I thank you all in advance for this.
Regards
Alan
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NLA, RLA or ELA???
Member Since January 2011 - Comments: 12216 - Articles: 1412
11:48 AM, 26th August 2014, About 12 years ago
Hi Alan
From what you have said I suspect your property will appeal to far more owner occupier buyers that it will to investors. This is because your gross rental yield is only 3.57% and a property of this nature will require more than average levels of ongoing maintenance which will eat further into an investors profits.
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Member Since July 2013 - Comments: 264 - Articles: 1
11:54 AM, 26th August 2014, About 12 years ago
thanks, fortunately we do get a good inome from it, even after allowing for 10% r and r, which we have not spent to date, we net 50% of the gross rent.
Member Since January 2011 - Comments: 12216 - Articles: 1412
11:59 AM, 26th August 2014, About 12 years ago
Reply to the comment left by “Alan Loughlin” at “26/08/2014 – 11:54“:
Hi Alan
Is that before or after mortgage?
Either way, £700 net based on a £470,000 investment = 1.79% return before tax.
There will be far more potential owner occupiers than investors looking for a property of this type.
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Member Since July 2013 - Comments: 264 - Articles: 1
12:00 PM, 26th August 2014, About 12 years ago
the 700 is after all costs and 10% put by for r&r
Member Since July 2013 - Comments: 264 - Articles: 1
12:01 PM, 26th August 2014, About 12 years ago
the reason for renting was to wait for a rise in value, in the last 6 months, according to Zoopla, it has risen 25,000
Member Since January 2011 - Comments: 12216 - Articles: 1412
12:06 PM, 26th August 2014, About 12 years ago
Reply to the comment left by “Alan Loughlin” at “26/08/2014 – 12:01“:
Hi Aloan
That makes sense from your perspective but won’t to another investor.
Investors will be looking for capital growth but they are more likely to be searching for properties which provide a better pound for pound into too. This is known as rental yield. Why settle for 3.57% gross yield plus capital appreciation when the same capital appreciate might be available with a higher yield.
If it makes sense as an investment property then ask yourself why you are looking to sell it.
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