See a real bargain in Front Street, Tudhoe in an unusual property sale

This property below has really caught my eye this week, as it's price looks unbelievable and the way in which it's being sold is interesting-

Front Street, Spennymoor, County Durham, DL16 http://www.rightmove.co.uk/property-for-sale/property-36747867.html

The agency selling the property is Livin Housing Ltd (resale) which is the selling arm of the local housing association. They describe the property and condition as-

Offered for sale by informal tender, a 2 bedroom end terrace house in need of structural repair and renovation so ideally suited for a Builder or Property Developer.

The only photograph of the property is the one of the front included, so you'll definitely need up visit the property with a builder to see what work needs to be carried out. The budding process is described as-

Offers are to be made in writing on form to be provided and returned to Livin Housing Ltd no later than NOON on FRIDAY 27 NOVEMBER 2015.

I'd suggest from this description and the low price that the property is being advertised at that there will be some interest in the property. And as such, the final sale price won't be as low as £25,000 but there's sjestsca chance!

In terms of rental return, I'd expect a monthly rental figure of between £375 and £425 per month for this property. That's a gross annual rental return of between 18% and 20%, based on the figure of £25,00 - an amazing rental return.

You'll have to see the property and have a think about how much you'll need to spend in it before making a bid, but this looks like one that definitely needs to be considered. And unlike many properties at a great price, you may not have many owner occupier as competition.

A little renovation work for Spennymoor investors

There's a fee new properties appeared on Rightmove over the last week, which is unusual for this time of the year. One that caught my eye for investors is this one on Thorn Close-

THORN CLOSE, MIDDLESTONE MOOR, SPENNYMOOR DISTRICT

http://www.rightmove.co.uk/property-for-sale/property-29708559.html

It's a 2 bed terrace on the market for £39,950. Although I disagree wholeheartedly with pricing strategies like this (whole numbers work perfectly with property portals - go for £40,000) the property is appealing at this price.

From the property description and the internal photos, it looks as though the property needs some freshening up, but on first internet inspection it looks like it's not major structural works.

These 2 bedroom terraced houses always have a reasonable rental demand. I think it would rent for between £350 and £400 per month. Based on the asking price, this would bring in a gross rental yield of between 10.5% and 12%, which is a good rental return for any investor.

Taking into account the potential of renovation, and the time this takes then there is a buffer in potential return to absorb this.

Have a look!