£80,000 High Yield Cash Up front Investment
MRA identify a suitable 2-bed modern apartment in a popular location in North East England. The vendors are very eager to sell for financial reasons. The asking price is £77,950 and we negotiate hard to agree to purchase the property on your behalf at £70,000. The property had been worth circa £95,000 in September 2007.
The property is fully redecorated, recarpeted and prepared for letting. The cost of this refurbishment plus all other costs associated with sourcing, purchasing and letting the property are included in the original £80,000 investment “package” price. Legal costs for the purchase, along with building and contents insurance premiums for the first year, are also included. A full breakdown of all costs are included in the original property report provided to the investor.
The property is then let at £475 per calendar month and you receive £418 per calendar month or £5,016 per annum after deducting our 10% plus VAT management fee.
This is a 6.2% annual yield on each £80,000 net cash investment.
The refurbished property is independently valued in the current climate at £84,000 which is £4,000 more than the total amount invested representing an “instant” equity increase of 5%. Realistic anticipated capital growth of 3.5% per annum over a 10 year cycle would increase the value of the property to £118,000 at the end of the 10 years.
This is a gross combined Yield plus Capital Growth asset backed return on your investment of 14.7% in year 1 alone.
Notes:- Examples for illustration purposes only. Actual package prices and achievable rents will vary from property to property. As with any investment yields and capital values can go down as well as up. MRA do not guarantee rental incomes or post refurbishment values in any way and ongoing maintenance costs may be incurred in the future. MRA Property Investments Ltd are not financial advisors. We act as an agent sourcing, maintaining, letting and managing residential properties on behalf of investor clients. Mortgages are subject to status and availability. Your property is at risk if payments are not maintained.