Property season starts with a potential 14%+ rental return

The property season will start in earnest soon, so here's one to start of the new year. It's a possible investment on Salvin Street in Spennymoor-

SALVIN STREET, SPENNYMOOR, SPENNYMOOR DISTRICT

http://www.rightmove.co.uk/property-for-sale/property-49743683.html

 It's a 2 bedroom terraced house on the market for offers in the region of £29,950, and is being marketed by Dowen.

The clarion call at the top of the property description is "calling all investors" and there's probably something in that.

From the photos it looks as though it needs decoration, as a minimum. I would strongly suggest at least 2 visits to the property and a list if questions for the estate agent to help make a final decision on whether to buy as an investment. From part experience, I know that Dowen won't deal with housing benefit tenants, so it's definitely worth asking them how they feel demand for non-housing benefit tenants will be.

The agent, Dowen, states on the property particulars that they think it would achieve a rent of £325 per month, and I think it could generate a rent of between £325 and £350 per month. Based on the asking price, this would generate an annual rental return of between 13% and 14%, which is obviously a really good investment return on any measure, as long as the demand is strong.