June Investment Purchase Advice

Rhys Owen, CPS Homes Senior Property Investment and Market AdvisorHere is some investment purchase advice from our Senior Property Investment and Market Advisor, Rhys Owen.

Claude Road, Roath

View property on Right Move

Flats are always popular with prospective tenants; especially two and three-bedroom flats like in this property.

The two-bedroom flat currently brings in £600 per month. That's low for a two-bed, especially one with access to a rear garden. With some improvements to the flat and the garden made more inviting, it would bring in £800 per month.

As for the three-bed, well we're always desperate for three-beds because there's a huge shortage of them and big demand, so it would comfortably rent for £1,100 per month with improvements (currently £960).

I'm not talking huge, expensive improvements here either. The flats are already of a decent quality, but they need to be taken up a few levels and given some TLC.

With my projected rental figures, that's an income of £1,900 per month or £22,800 per year.

Dogfield Street, Cathays
Offers in excess of £205,000

View property on Right Move

My advice would be to convert the property to 2 x two-bedroom flats. Finished to a high standard, they would comfortably achieve £800 each per month.

Two-bedroom flats fly off the shelves due to high demand and limited supply, so I predict they would be occupied all-year-round, bringing in £19,200 per year.

The calculations work out the same as a five-bed HMO at £350 each per month (based on two half-rent months), but there's far less competition within the two-bedroom market...

Please note that CPS Homes are not the marketing agent for these properties, so I cannot arrange viewings on your behalf, but I'll gladly assist from a lettings perspective.

14 June 2019


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