So here in Croydon, you will be lucky to get over 5% yield on a property investment in today’s market. Although I must have posted over 25+ deals now that are OVER 6% yield, there occasionally comes the 1 deal that is just 7% Yield’er.
Please note, I can only suggest and give advice on what I see from these listings. I do not visit the properties or call the agents for further information. It is the initial outlay that I am looking at!
Saying that… I can bet you any money that this flat will sell like a hot cake. But before it does that, it will REDUCE IN VALUE because it HAS A VERY SHORT LEASE and is CASH buyers only. THESE ARE THE ONES YOU WANT TO BUY. Please note that you must do some homework (or I can do some homework for you if you call). You need to find how much it is for a new lease (roughly around £20,000 but will change depending on many factors), and a lot of information about the additional charges that are associated with flats.
My guess is it will go for around £178,000, but for now, lets say it goes at the asking price.
Property Price: £194,920
Rent: £1150 pm