Rede House, Corporation Road, Middlesbrough

Property investment comes down to one thing: does the property stack up? Successful investors don’t overpay when the market is booming or expect unrealistic bargains when the market slows. They buy opportunities where the numbers make sense. That’s why experienced investors target HMOs, serviced accommodation and properties bought well below market value—not because they’re fashionable, but because they can produce strong returns.

So, what does “stack up” actually mean? It means buying a property that pays for itself and leaves a profit after costs. If you’re using finance, the rental income should comfortably cover the mortgage and other outgoings while still generating positive cash flow. If you’re buying with cash, it should provide a return that compares favourably with leaving your money in the bank. Ideally, it should also have the potential for long-term capital growth because you have bought well or because the location has good future prospects.

Consider two examples. Buy a property worth £50,000 for £35,000 and receive a healthy rental return over the years, and you’ve created two opportunities for profit—income from rent and capital growth. Buy that same £50,000 property for £65,000 with a weak rental return, recurring maintenance costs and void periods, and your long-term return may be significantly reduced despite future price growth. In property, the price you pay on day one is the biggest factor determining your eventual return.

The principles are simple: buy below market value, focus on investments that generate a strong 10%+ net return after all costs, and think long term. Flats are currently out of favour with many buyers, and that is exactly why some investors are taking a closer look. Markets move in cycles, and opportunities often appear when sentiment is at its weakest.

This property is being offered with No Reserve, meaning the market will determine the sale price. Whether it sells for £100, £12,000 or £20,000, the opportunity is there for the successful bidder. If you’ve been waiting for an investment where the numbers make sense, this could be one worth serious consideration.

NO RESERVE AUCTION – Previously sold for £48,000. Owner has emigrated. Make your offer today. Extended completion available. A rare opportunity to acquire a fully managed modern student studio at around 80% below its previous sale price, producing £7,140 per annum with a net income of approximately £4,900 per year after the £1,997 service charge and £230 ground rent. All service charges, ground rent and rental income are fully up to date. Located in the popular Rede House development, just a short walk from Teesside University, the apartment benefits from an on-site gym, cinema, entertainment rooms and all the facilities that continue to attract student tenants. With no external maintenance concerns such as roof or building repairs, ownership is simple and hassle-free, making this an excellent hands-off investment.

Service charge £1997 per year
Ground rent £230 per year
Rental £7,140 per year
Net profit circa £4,900 per year
Yield 40% at £12,000 valuation

N.B service charge, ground rent , and rental income is all paid upto date