Deal of the week Jan 29th 2024

Investment Opportunity: 39 Ardenlee Drive 

Introduction: Nestled in the sought-after locale just off Ardenlee Avenue, 39 Ardenlee Drive is not just a property; it's an investment canvas waiting to be transformed. This mid-terrace gem, listed at an enticing £95,000, is not only priced below the market value in the area, but it also boasts potential for an impressive capital yield. Let's delve into the details of this enticing deal.

 

Key Points:

Development Potential: Priced at £95,000, this property presents a unique opportunity for capital growth. With houses in the area fetching £125,000, there is significant potential for profit through strategic renovation or resale.

Yield Potential: Investors are often on the lookout for properties that promise substantial returns. In the case of 39 Ardenlee Drive, the combination of a lower acquisition cost and a competitive rental income of £600 per month positions this investment as a potential yield powerhouse.

Cash Offers Only: Streamlining the purchasing process, this deal exclusively entertains cash offers. This approach is ideal for investors ready to seize this promising opportunity promptly.

Sought-After Location: The property's strategic location adds an extra layer of appeal. Situated in a cul-de-sac just off Ardenlee Avenue, it aligns with the preferences of discerning buyers and tenants.

Property Overview:

Entrance Hall: A welcoming entrance sets the tone for the property.Through Lounge: The spacious lounge, adorned with a bay window, bathes the interior in natural light.Extended Kitchen: The kitchen, extended for added functionality, features a single drainer sink unit and built-in cupboards.Shower Room/Wet Room: A modern addition offering a shower area, low flush w.c., and wash hand basin.Two Bedrooms: The first floor hosts two bright bedrooms, providing comfortable living space.Enclosed Yard: Outside, an enclosed yard with a boiler house, oil-fired boiler, and oil tank completes the property.

In the realm of property investment, 39 Ardenlee Drive stands as an exceptional opportunity to maximize capital yield. With a cost well below the area's market value and a monthly rental income of £600, this investment beckons those looking to augment their portfolio. Immediate viewing is recommended to fully grasp the financial potential and secure a stake in this promising venture. Don't miss out on the chance to turn 39 Ardenlee Drive into a lucrative investment masterpiece.

Financial Snapshot:

Cost of House: £95,000Market Value in Area: £125,000Rental Income: £600 per month

Capital Yield Calculation: Capital Yield=(Current Market Value−Cost of HouseCost of House)×100Capital Yield=(Cost of HouseCurrent Market Value−Cost of House​)×100

Capital Yield=(£125,000−£95,000£95,000)×100≈31.58%Capital Yield=(£95,000£125,000−£95,000​)×100≈31.58%

Rental Yield Calculation: Annual Rental Income=£600×12=£7,200Annual Rental Income=£600×12=£7,200

Rental Yield=(Annual Rental IncomeCost of House)×100Rental Yield=(Cost of HouseAnnual Rental Income​)×100

Rental Yield≈7.58%Rental Yield≈7.58%

Initial Renovation Consideration: Before diving into the potential rental yield, it's crucial to acknowledge the initial costs associated with property renovation. Often, investors may need to allocate a portion of the first year's rental income to cover the expenses of enhancing and refurbishing the property. This upfront investment is a strategic move that aims to increase the property's overall value and attractiveness.

Post-Renovation Rental Yield: After accounting for the initial renovation costs, the rental yield for subsequent years becomes a more accurate reflection of the ongoing return on investment. Assuming a portion of the first year's rent is used for renovations, the post-renovation rental yield in subsequent years would likely be higher than the initial calculated 7.58%.

Investors are encouraged to carefully assess the potential return on investment, factoring in both the costs of renovation and the subsequent rental income, to make informed decisions about the long-term profitability of 39 Ardenlee Drive. This dynamic approach ensures a realistic understanding of the property's financial performance beyond the initial year.

 

https://www.propertypal.com/39-ardenlee-drive-belfast/917166