1 bed, new build apartment
This is what the agent says:
Purple Property are delighted to bring to the market this in our opinion, superb new build one bedroom first floor aparment, the kitchen has built in dishwasher, washing machine and fridge freezer, a lounge/diner and bathroom finish off the accommodation, close to the town, station and hospital. A must on your viewing list, do not miss out, book your appointment - 01634 855000
Hardwood door to entrance hall, entry phone system, cupboard.
LOUNGE/DINER: Double glazed window to front x2, TV point, radiator x2.
KITCHEN AREA: Range of wall and base units, stainless steel 1½ bowl sink with mixer tap, built in stainless steel oven, hob and extractor with lighting, splash tiling, built in dish washer, washing machine and fridge freezer, wood flooring.
BEDROOM ONE: Double glazed window to rear, built in wardrobe, door to Jack & Gill bathroom, carpet as laid, radiator.
JACK & GILL BATHROOM: Panelled bath with shower attachment, low level WC, wash hand basin, extractor, splash tiling, travertine tiled flooring, heated towel rail. (Access from hallway and bedroom)
OUTSIDE: Communal space and bike store.
My initial thoughts:
Obviously, this is a new build property and so your due diligence is very important, especially if this development has been built by an independent property developer, or worse a new start property development company. This is because you may be buying a product from a company with little or no proven track record. Here are some of the questions you should be seeking the answers to:
1. Who is the developer?
2. What else have they built and when?
3. Is the property covered by NHBC or a similar guarantee?
4. Who is the freeholder?
5. Who is the managing agent and what is the service charge?
Clearly, this is not an exhaustive list and your solicitor will be able to advise further.
It is a little tricky to completely accurately value the rental on this unfinished product but my experience of the local market would indicate a rental value of between £650 and £700 per calendar month. This would provide a gross rental yield of around 6.25%, at £700 pcm. An average rental yield in the Medway towns is around 5%, so this property would be well above average.
In my opinion, subject to the usual due diligence I discussed above, this would be a low-risk, low-value entry point into the buy-tol-let market and would make a good buy.
Feel free to email me if you would like my opinion on a specific property within the Medway region. I can be reached HERE.
Thanks for reading.