Shawn, a finance director in the city, with a small portfolio made an investment in Fulham Broadway days after the Brexit vote. With other properties in central London he chose Fulham Broadway for its location, proximity to Chelsea and South Kensington and the quality of the rental market this borough is famous for.
The property, a one bedroom garden flat in a period property with a private garden and great natural light. After years of neglect the property was looking tired and the garden over grown, like many period properties in central London. The main attraction of the flat was the amount of natural light and the garden, which in London is a real luxury.
However, if you buy a property with a small deposit and a buy to let mortgage, is hard to achieve the rent you need to make the investment into a cash flow success.
Shawn Says: I did my research of the area’s rental values and I did think the property in its current state wouldn’t generate the revenue to cover my mortgage and provide me with a good spare monthly cash flow.
With market uncertainty at it’s all time high after the Brexit vote, the increase of restrictions by lenders and the current tax implications of having a real estate investment, buying a property that isn’t covering your monthly costs wasn’t an option for Shawn.
Shawn says: That’s when I researched several options and accessing the relocation market was very attractive. When I put my offer in I took £8,000 off the asking price and set a £10,000 budget to do a light renovation.
The result was bang on the money, the design was done to spec, the staging and advert stood out and drew the right kind of clients. Within two weeks I had two asking price offers and chose a relocation tenant. Now, I’m upgrading my other properties to replicate the formula.
Julian says: Our contacts keep asking for more properties like Shawn’s and it is thanks to our real estate partners and network of private owners that we are able to do what we love most. Shawn is the ideal owner, determined to make a success of it with a clear vision of who should live in that property.
If you have a period property and want to know what we can do for you just email us at email@example.com