Deal completed - update on refurbishment project

You may remember this post from a little while ago... 

I had purchased two properties to refurbish last year, one to hold and let and the other to sell on to an end user (be it owner occupier or buy to let investor looking for an easy purchase). I had some of my avid readers ask me for an update, which I happily provided and I thought I'd post the updates here as well for you to see. I'll post more over the course of the next few days, but I thought I'd show you a little video to show the before and after for the three bedroom apartment which I planned on holding:

https://www.youtube.com/watch?v=l0S7eAEaqCE&t=3s 

This particular property was slightly out of my normal patch of Clapham, but as you know you sometimes need to trek a little bit further in order to get what you want. This particular project was a straightforward refurbishment of an otherwise solid apartment in Camberwell. The property had been neglected over the years so the programme of works included:

• New bathroom
• New kitchen
• New flooring throughout
• Redecoration throughout
• New front door
• New boiler & heating system

The project was completed within 2 months and allowed me to let out the property and to refinance, recouping half of the investment and hold the property for my long term hold and rent portfolio.

The initial outlay (including deposits, legal fees and refurbishment costs) was £110,000 and the investor was able to refinance £55,000 back out of the property due to the increase in value as well as retain a healthy cash flow of around £1000pcm. A healthy cash flow, and now on to the next one. I will be posting a further update on my other (auction) purchase in due course and will reveal more about my investing plans for 2017, focusing heavily on cash flowing properties and maximising the returns.

If you are interested in learning more about property investment then do get in touch. Don't know where to start? Come and have an evening of socialising with other investors, listening and learning from those that have made mistakes so you don't have to. Click here to join the Clapham Property Meet, a social meeting group for landlords, investors, old and new. You can start investing in property with little to no money if you have time to spend. For those that are time poor - I can walk you through the various options and do the leg work for you. Start the conversation by email on jeroen@claphampropertyblog.com.

Emerging Outer Prime - 3bed SW9 6%yield STILL ON MARKET - BUY NOW!

I've been absolutely inundated with requests for larger properties in readiness for the summer market. The summer market always brings out the students and hopeful graduates in search of accommodation to share with their friends. As my colleagues and I have said in the past, the properties with the lowest voids are generally the “better value” ones as opposed to top or bottom of the range. Nobody wants a Lada, few can afford a Rolls...

I have found something in exceedingly average condition that you could buy and do nothing to. In its current condition it would probably let for £380-400ish per week, which means a 6% yield at asking price. Or perhaps in the order of £425pw when you've spent money. Same yield, so why bother really?

It is very similar to the recent one I posted on Saxby Road, and with a little bit of work could fetch a lot more. To you Mr/Mrs Investor the choice to refurbish or not. New bathroom, mew kitchen and redecoration throughout would set you back in the order of £20k I would have thought. But don’t go too far. You don’t want to present a Rolls Royce to the market, only to end up with would-be tenants after a nicer block for their money, or something closer to the station. Match quality with location and your target audience - 1st jobbers and students aren’t after Villeroy and Boch, they want value for money. Clean, tidy, presentable with half decent furniture goes a long way. And please, no IKEA, it doesn't last the test of time. Wood laminate is passe, even for the early twentysomethingers. Solid wood (not mahogany or oak, let’s not get too excited) looks expensive but isn't and it lasts!

Check out this ideal investment in what my colleagues and I like to refer to as “Emerging Outer Prime Market” territory. Further from the station, better value. Cyclists and bus-goers rejoice in this bargain beauty:

http://www.rightmove.co.uk/property-for-sale/property-50972900.html

Bear in mind this one is still on the market despite us posting it a month ago - surely a bargain is to be had here on price!! Make this vendor an offer they can't refuse and get completed before the August Rush. We're nearly in May so considering 8-10 weeks of conveyancing it will be ready in the nick of time for peak demand. My colleague Brook was on to a winner here. Nobody has picked up on that yet. Will you get in there with a cheeky bid now this vendor has had ample time to market and nobody is realising the potential of this great rentable flat?

Call me or email me for further advice on Buy-to-Let opportunities, investments, or tenancy matters on jeroen@xandermatthew.com or 020 3397 2099.