John J
01-04-2008, 12:09 PM
I have also posted this on the Planning Forum:
I'm very new to the property market (I've recently sold my small business) and have the chance of buying a property with 3 s/c flats (let) and one s/c office / shop (vacant).
My enquiries at the local authority (Trafford, who have a ban in place on the development of new flats) show that one of the flats doesn't have PP, nor is it registered for Council Tax. All the other units appear to be in order.
The building needs money spending on it, but even allowing for that the gross return would be 5.5% in the first year - this is with the office still vacant. Fully let and with the repairs done the return would be 7.2%.
I'm fortunate that I don't need a mortgage.
I would be very interested in the opinions / advice from the membership: Would I be buying into a can of worms? Is the gross return reasonable in this day and age?
Thanks in anticipation,
John
I'm very new to the property market (I've recently sold my small business) and have the chance of buying a property with 3 s/c flats (let) and one s/c office / shop (vacant).
My enquiries at the local authority (Trafford, who have a ban in place on the development of new flats) show that one of the flats doesn't have PP, nor is it registered for Council Tax. All the other units appear to be in order.
The building needs money spending on it, but even allowing for that the gross return would be 5.5% in the first year - this is with the office still vacant. Fully let and with the repairs done the return would be 7.2%.
I'm fortunate that I don't need a mortgage.
I would be very interested in the opinions / advice from the membership: Would I be buying into a can of worms? Is the gross return reasonable in this day and age?
Thanks in anticipation,
John