Auction Week: 3 bed ground floor with garden – Guide £300,000 in SW16
Here’s one that I don’t see very much of – an opportunity to add value.
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Assuming it’s a wreck of a flat and needs £50k spend on it I would have thought a purchase price under £350,000 would see a healthy profit.
There’s two flats on with Foxtons at the moment in the mid 400s (will they get it who knows, and how they’re such a similar price yet 200sqft different is beyond me) so that gives us a rough expectation:
589sqft – £450,000
774sqft – £465,000
However more realistically priced is this one with Barnard Marcus offered for OIEO £400,000:
At 899sqft a real bargain, but goes to show basement flats don’t sell as quick, it’s been available since July last year! Perhaps more of the seller than the property, or perhaps it's fallen through for one reason or another. I would have thought in today's market a good 2bed would sell for £400k, I've certainly spoken to investor buyers very recently paying that much for conversions locally.
So, if you're in the market for a good opportunity to develop something from nothing then have a look at this one. Rents would be about 400pw ish, so once you factor in your costs about 5.2% at £400k all-in. Perhaps sell? If you can get it at the right price either strategy would work. Remember long term gains are good in SW16.
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Happy investing folks.