Hello readers. I’ve been having a lot of people phone and email me recently from reading my blogs at Medway Property News, where I’ve been blogging for almost 2 years now, or people are finding one of my articles on LinkedIn and contacting me there (feel free to add me). I’m meeting one investor on Friday where I will give him a tour of Medway to show him where’s hot and where’s not, and also showing around a couple of refurbishments that I’m currently involved with.
Anyway, I’m posting today about a property that has only come onto the market on Monday. It is on East St in Gillingham, and is offered at offers over £180k. We are currently taking over management of a four-bed HMO on this very road which will have 3 en-suites and 1 off-suite (where a room has its own bathroom). Although building work is due to complete in November, we are already arranging viewings!
Here is the property above, with the Rightmove link. You can see the floorplan below.
In the current market, there are a lot of people doing HMOs, so I would recommend differentiating yourself by providing all en-suites. For example, if you made all the rooms here into ensuite (including the reception room), you would have 5 en-suite rooms that in current market conditions should fetch between £525-550 each. With a 2 week void period per room, per year, which I find average across the area, you would have a yearly income of £30,187-31,625.
Although providing en-suites could prove tricky (and expensive), I believe the upfront investment would be worth it in the long run.
The kitchen/diner is just over 11m2, however you would need 17m2 for a shared living/dining area. I think you could get creative here by removing the bathroom and lean to, to create a nice living area with sofa and TV. This would become very attractive to tenants. A spare WC would remain for the living area.
This property would also do very well with the student market.
So lets look at the costs here.
Purchase price: £180,000.
Stamp duty: £6,500.
So, at the top end, the spend could be £256,500. However, with an income of £31,625 the gross yield could be a whacking 12.3%!
If you are interested, please contact the selling agent, as we are not selling this property. In fact we don’t sell property at all, we are a HMO-specialist letting agency. This means you can be assured I will give you the advice you require. Feel free to call me on 07944 726676, or you can email me at firstname.lastname@example.org.