5 bedroom town house for saleNash Drive, Redhill, RH1
Under Offer £400,000
- Five Bedroom Investment (HMO)
- 5 Minutes from Redhill Station
- 31.3% Gross Annual Yield (with finance)
- 5 Minutes from Redhill Town Centre
- 1308 Square Feet
- Vacant Possession
Five Bedroom Investment | 31.3% Gross Yield (with finance) | Possible via House of Multiple Occupancy (HMO) | Four Double Bedrooms (one en suite)| One Single Bedroom | 1308 Square Feet | Vacant Possession | Close to Town | Close to Station | Parking | Rear Garden
A great investment for an existing portfolio or an opportunity to hit the ground running with your first. HMO’s (House of Multiple Occupancy) provide greater security against rogue tenants and the ability to evict. They are also at much lower risk of void periods.
With the interest rate cut to their lowest rate again, it reflects the theory of most credible economists that interest rates will be staying low for much longer than originally planned. If you have cash deposited in a bank account it’s likely to be eroded by inflation with such low interest rates on offer.
Buy to let mortgage rates are the lowest they have been for some time, rather than purchasing cash, wouldn’t it be wiser to earn money of somebody else's money too?
Below you’ll find out the rough figures to consider this investment. It’s still an inflation busting yield as a full cash purchase but with finance it has massive potential to make very large gains from a modest investment of just £106,250 @ 75% loan to value.
The property consists of...
1 x Double Bedroom @ £600
3 x Double Bedrooms @ £575
1 x Single Bedroom @ £450
Annual Income = £33,300
With finance @ 75% loan to value, based on purchase price of £425,000
Mortgage term; interest only @ 2% fixed rate.
Deposit required: £106,250
Annual income = £33,300
Gross Yield = 31.3%
Less; Annual Mortgage payments = £6375
Less; Annual Bills = £5100 (Water, Gas, Electric, TV License, Council Tax estimate)
Net Annual Profit Potential = £21,825
NET ANNUAL YIELD = 20.5%
We’re not here to provide the finance, just credible solutions. We can recommend brokers and financial advisers but they are not affiliated with Power Bespoke.
Gross Yield (for comparison) based on a purchase price of £425,000 with cash = 7.8%
Net yields not including purchase costs and fees.
Guide Price £425,000 - £440,000
Parking Arrangements: Driveway
Vendors position: NO CHAIN
Council Tax Band: E
Property Built: Circa 1970’s
Potential to add value/extend (stpp): Self contained flat on ground floor would add value.
Age of Boiler: TBC
Windows Installed: TBC
Garden Fence: To the rear and right (please verify through solicitor)
Garden Shed: Included
Garden Direction: West
Nearest Train Station: Redhill. Services to London in 30 minutes.
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