I’ve noticed this new to the market two bedroom mid terrace in need of modernisation in Southgate Road.
The property is on the market with Entwistle Green on Broadgreen Road in Old Swan for £55,000 and needs modernisation. I feel a developer/builder could get this property in top condition for around £10,000 and this would make it very appealing to tenants in the area.
This type of property would tend to achieve around between £450 to £475 per month so for working out the yield, lets go with £460 per month. This would give us an annual income of £5,520 divided by the purchase price and refurbish costs of £65,000 equalling a gross yield of 8.5%. As always, I would like to negotiate on the purchase price but this does seem a low price in this street as average properties have been sold in recent times for around £70,000.
Old Swan is one of my favourite places for investing as the quality of tenants are great and the property and area is also very good.