Durham Road in Spennymoor always has strong demand from tenants

Although it's for sale by auction, so it's a little difficult to determine the actual selling price, this property on Durham Road definitely has investment potential-

DURHAM ROAD, SPENNYMOOR, SPENNYMOOR DISTRICT

http://www.rightmove.co.uk/property-for-sale/property-51785729.html

It's showing on Rightmove as offers over £49,950 and is being marketed by Dowen. The actual price will be determined by how the auction goes plus there's a buyers premium when you've bought the property - although the amount of this wasn't stated on the Rightmove listing. And the confusion continues a little further as, although the property on showed as uploaded in the last 3 days, the listing also states that the auction took place in 4th June. I'll attempt to clear up the confusion and post my findings on here.

In any case, the benefits of buying in Durham Road are evident, no matter what the property, as long as the price is right.  Durham Road always has a good demand for rental as it's good for transport links and close enough to the town centre. The only downside is the recent rise in attendances for Spennymoor Town football club and the parking issues this sometimes causes. But once a fortnight for a couple of hours through the football season isn't a major hardship.

The agent describes it as-

"A spacious THREE BEDROOMED end terrace property which has the benefit of TWO RECEPTION ROOMS and OFF STREET PARKING."

Although it appears to need some work to bring it up to modern rental demands, it is an end-terrace and it has the off street parking, so I'd suggest that when it has been modernised, it could a he ive a rental return in the region of between £425 and £500 per month.

This is where is usually give a rental return figure, but this one is a little more difficult than usual given the fact that the property is at auction and there is this unspecified buyers premium to consider.

I'll base the figures in £60,000 to cover these factors and the renovation costs. It works out as a possible gross rental return of between 8.2% and 10% per annum. A quite healthy return for your money.

As I've said before, I'll try to find out some more facts about the sale, the auction and the buyers premium and when I do I'll put a short post on here to confirm the details.

A property on Rightmove from Spennymoor's newest agent

A new property from Spennymoor's newest agent has come onto the market this week. It's a 3 bedroom house on Durham Road-

DURHAM ROAD, Spennymoor, DL16
http://www.rightmove.co.uk/property-for-sale/property-47461492.html

It's on the market for £119,950. The average sold price for properties on Durham Road is £72,996, according to nethouseprices -

http://m.nethouseprices.com/soldprices/property_results?street=DURHAM+ROAD&town=SPENNYMOOR&outcode=DL16

The description put on Rightmove by Harringtons is hugely wordy and it can be difficult to sort the wheat from the chaff. The photograph of the front of the property is something I've never seen before - it includes the front of 7 properties!

Durham Road is popular for buyers and renters, so if the figures stack up them there's potential for a landlord. It looks in a really good condition from the photos, so hopefully there's no work that needs doing.

I wpuld expect a rental return of £500 per month for this property, so based on the asking price this wpuld generate a gross rental return of 5%. This is a little lower than the standard expected return of 8% but is obviously higher than you'd get in a bank account.

There will probably be some competition from people looking to buy the property to live in so investors will probably need to look at the property soon and make their mind up.

Durham Road is popular for investors

This Durham Road property had just come to the market in the last few days-

Durham Road, Spennymoor, DL16
http://www.rightmove.co.uk/property-for-sale/property-49303823.html

It's on the market with an out-of-town agent, Reed Rains of Ferryhill. The photographs are heavily under-exposed, which gives a real feeling of darkness to the property but I believe they they are just bad photos - not necessarily a bad house.

From the look of the property on Rightmove (I've not visited it myself) there's a degree of renovation work to be done, and the listing itself states "reasonable offers considered." Not the smartest move from an estate agent that I've seen!

It's on for offers in the region of £40,000, which looks a little on the heavy side seeing as a renovated property on the same road hasn't yet sold, and is on the market for £67,950 -

Durham Road, Spennymoor, Durham
http://www.rightmove.co.uk/property-for-sale/property-32624286.html

Let's speculate that you can get this for £35,000 (who knows what the vendor is thinking) then this will bring in a rental return of between £100 and £110 per week, which related to an annual gross rental return of between 14.8% and 16.3%, which is a very healthy return.

Keep your eye on the market.