Here’s my investment property of the week in NG24 for less than £150,000
Address: 4 Wisdom Close, Fernwood, Newark, NG24 3WJ
Type: 3 Bed End of Terrace House
Asking Price: £140,000
Estate Agent: William H Brown
Condition: Ready to Rent
Yield: 5.57% yield
First listed back in March for £160,000, this modern 3 bed end of terrace house on the popular Fernwood establishment has struggled to get the asking price and has since been reduced twice, initially to £150,000 and now to £140,000; aside from taking the stickers off the second bedroom wall, the property is ready to go!
We recently let out a 3 bed semi detached house on Wisdom Close within a week for £675pcm that was purchased for £150,000 in March, it gained a lot of interest from couples and families due to the close proximity to the A1/A46 for commuters and both Fernwood play ground and Primary School are within walking distance from the property. So is £140,000 about right? Well both Number 4 and 5 have enough parking for 2 vehicles, 3 bedrooms and a spacious living/dining room but Number 4 has a smaller third bedroom and kitchen, doesn’t have an en-suite and is a terrace, sounds alright to me! Having said that, i don’t think that there’s anything else the current owners could have done to increase the value so i’d say this is better as a buy to let than a first time buy as the buy to let would make more money in the long run, the first time buyer may struggle to increase the value.
As Wisdom Close was only completed 3 years ago, there have only been 2 sales on the street, both of which were semi detached properties for £149,000 and £150,000 so i can see why this property didn’t sell at £160,000, why would you pay more for less house? Two reductions later this price seems fair and the previous interest we’ve had on 5 Wisdom Close would suggest that the property could be tenanted promptly too.
From an investors perspective this would be ideal for a first time investor or an established one, it doesn’t required any work and the rental market would suggest it’s a desirable area for tenants; after two reductions, it would seem it was valued optimistically at an initial glance, will you going to have a look to find out?
If you’re interested in this property and would like a detailed report on it’s investment potential, call us on 01636 343014, or better still pop in for a chat and a cuppa.