18:21 PM, 6th September 2012, About 12 years ago 2
I’ve been having a twitter conversation with a chap called Yemi Edun who specializes in buying tired, prime location, London apartments at auction and then refurbishing and letting them on behalf of buy to let investors.
Yemi tweeted me links to a couple of You Tube video’s where he’s appeared on BBC TV’s “Under The Hammer” and they were so good I felt compelled to add one of the video’s I watched to Property118 along with my own commentary and blog.
In the video Yemi purchases a property just three minutes from The Angel Tube Station in London’s Islington N1 at auction for £278,000.
The refurbishment, which one of his colleagues (Adeola) arranged, ends up costing £13,500 which is remarkable when you see what his team managed to achieve for that amount and within such a short timescale.
Two estate agents valued the property post refurbishment at an average value of £345,000.
The associated fees were not disclosed, however, the profit on capital invested (net of fees) was in the region of £53,500
The flat was subsequently let for £470 a week (£24,440 per annum).
Based on costs (net of fees) that equates to a yield of over 8% – in a prime London location! Now that’s good going!!!
If you are interested in doing projects like this yourself you may also want to check out this page which explains a variety of different funding options.
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