Buy to let Sunderland
This article is about one of our buy to let properties in Sunderland. It’s an important area to us, which has seen some big changes recently with major regeneration in the city center.
Sunderland is a city in North East England, with a population of around 275,000 people. It’s one of the most affordable places to buy a rental property. In the city, about half of the population rents their homes, so there is a high demand for new rental properties.
What is a buy to let?
A buy to let is a fantastic investment. It’s an excellent way of earning passive income and provides good returns on your money over time, with properties appreciating in value too!
The buy to let market is an attractive investment proposition due to the high rental yields and low maintenance costs compared to other forms of buy-to-let. However, it can be a risky business and you need to do your research first and compare buy-to-let mortgages so that you know what your monthly repayments will be.
Also before you buy, always factor in refurbishment costs. This is because buy-to-let properties usually need a little bit of work done to them before they can be let out, and the cost of this work needs to be taken into account when calculating your overall return on investment.
Generally, you can expect a return on investment of around 8-10% on buy-to-let properties. This means that for every £100 you invest, you can expect to receive an average of £8-10 back in rent each month. However, this figure will vary depending on the location and condition of the property, as well as the current state of the buy-to-let market.
Buy To Let Sunderland
- 3 bed cottage
- Purchase price £50k
- Valuation after refurb £75k
After seeing this listing on Rightmove, we made an offer of £50k. The offer ended up being rejected and then sold to someone else for the price of 55 grand! For one reason or another, the sale fell through
The estate agent contacted us and asked if our offer was still on the table. Lucky for us, we had not withdrawn it yet! We were able to purchase this house at £50K.
The property was in average condition. Despite our preference to purchase a run-down home so we can add as much value, this one had potential from what we could tell just by looking at it.
Work Required
- New Kitchen
- New Bathroom
- Replace various sections of floors and joists
- Full decoration and floor coverings
The tenant had been found during the refurb and then a rental of £475 PCM was agreed. After refinancing this property cash flows around £300 PCM with an ROI of 50%.
Professional Snagging
Professional snagging companies are hired at the end of construction projects to check the quality of the work that has been carried out. Their role is to identify any defects or areas that need improvement before the project is completed. This ensures that the final product meets the highest standards of quality and safety. Professional snagging companies are an essential part of any construction project, and their work helps to ensure a successful outcome.
Conclusion
This Buy To Let was a very straightforward process. We were able to buy it in slightly better condition than we would have liked, but still ended up with an excellent final product!
Whether you’re looking for professionally-managed buy to let properties or high-turnover residential investment, Focus Homes has the perfect place for you.