This property jumped out of Rightmove this week and into my attention-
HAZELMERE, SPENNYMOOR, Spennymoor District, DL16 6UL
http://www.rightmove.co.uk/property-for-sale/property-37396203.html
It's a 2 bedroom semi-detached house on the Greenways estate, which always draws a lot of attention from investors and owner-occupiers.
It's being advertised at offered over £65,000 because it's being sold in auction by Dowen. They describe it as-
"A two bedroomed semi detached property situated in a quiet spot on the popular Greenways Estate in Spennymoor and having the benefit of GARDENS TO FRONT AND REAR, a GARAGE and TWO DOUBLE BEDROOMS."
Auction properties can be a little volatile in terms of what you will actually pay, just because of the nature of the auction itself. You could pay as little as the £55,000 advertised or much more if there are many people interested. And it all comes down to the day.
For someone who will buy at auction, it is important to know what you are doing. You must have a grip on the following-
- The auction rules
- Your finances
- The legal side of things
- Your deposit
I think that to assess this property, I'll have to select a price to base my calculations on. The price I have selected is £60,000. I think that this property will attract good attention on the rental market and I'd expect the monthly rental to be somewhere between £450 and £475. This equates to a gross annual return of between 9% and 9.5%, which is a good return.
This is one to keep an eye on.
