You know those properties that you wish you had… The ones that have a good rental return and have good capital appreciation? The best of both? Like Hovis, Medium Size. Or those properties which just have a layout good enough to restructure into a juicy HMO? Well… here it is!!!
Marketed by Savills (Auction) it has a relatively low guide price at £230,000. It needs work done internally (“modernisation”), according to their description, and is based in an absolutely fantastic location inbetween South End and Southbridge Road. Its quite a prime location, being so close to the stations and local amenities, while only a few minutes away from Croydon High Street and the restaurant parades… And don’t forget in 3 – 4 years there will be a Westfields almost on the doorstep!
So Lets get to it:
Property Price: £230,000 (lets assume it finally sells for £250,000), although if you were on the ball, you would find the owner prior to the auction (don’t know how? – Call me).
Rental Amount: £1250pm (I would expect this to increase by £50-£100 every year leading up to the completion of Westfields).
Turn the thing into a HMO. Now obviously, Savills couldn’t be bothered to put up any floor-plans, or pictures… or even a decent description so this option is only really viable if you are willing to call them and get a time slot to see the property. From the description they have given however, I can see there are 2 reception rooms downstairs. And from my experience, I pretty much can visualize the exact layout. The only thing I won’t know is the size of the upstairs bedrooms. So, put very simply,
– Turn both reception rooms into bedrooms,
– Eat into the largest bedroom upstairs, and extend the bathroom to accommodate a 4 bedroom property.
– Acquire a HMO licence.
Property Price: £230,000 (let’s say £250,000)
Rental amount: 4x £550 pm = £2200
Happy Days! If you want more advice, or to know more about my thoughts on this, or any other property, please feel free to call on 07957336999.