Woodseats, Sheffield S8 with 6.3% Return
Woodseats is a really popular area to live in at the moment, therefore house values have risen and it is difficult to find much under Â£100,000, particularly if you are looking for a two bedroom terraced house. At Â£99,950 this seems a great price for this house.
As the asking price is low, it is to be expected that there will be work required. The pictures are limited, so a viewing would be essential to judge how much work is required. The kitchen does look dated and would certainly benefit from a new kitchen. I would expect the bathroom, bedrooms, living area and dining area all to require modernisation.
Looking at other properties in the area, two bedroom terraced houses of a similar size are for sale between Â£120,000 and Â£130,000, most of these properties are of a high quality internally. This does go to show how much profit can be made when it comes to selling this property, should the refurb be done to a high standard.
On the rental market, if refurbished to a high standard, this property could achieve in excess of Â£550pcm, if purchased at asking price, this would mean a yield of 6.6%, this however does not take into account the money required to bring the property up to a high standard, so realistically with the money that needs to be spent, you can expect a yield of around 6.3%, which is still a very good yield and this is why I believe this property would be a good investment.