While the project may have been completed ahead of schedule, tenanted in double-quick time (from day of purchase to tenanted status in 6 weeks) and has been rented ABOVE the initially expected rental of £1300-1400pcm at £1450pcm, it has not all been plain sailing.
The start of this project faced a set-back when the property got valued at just £230k – when I was paying £250k for it. Despite no market comparables evidencing such a low valuation the clock was ticking, and realising I had a good mortgage deal on my hands (4.49% fixed for 5 years) I went ahead and accepted.
The £15k extra which went into buying the property, meant the renovation plans I’d originally had (and which I’d anticipated would cost around £25k), got radically changed.
Admittedly, I could’ve found the additional funds to keep with the original plan, but as I have always said – buy to let is a business – this is not my home, this is my business.
That meant I had to re-think the lot.
This was not helped when I discovered to my horror, I needed to replace all the windows and doors. Not budgeted for.
And nor was the boiler.
So creative, I had to get.
By the time I’d shelled out for the entire property to have new double glazed windows and doors, a new boiler, new kitchen, bathroom, partial re-wire, plumbing, decor, flooring and a myriad of other stuff – the coffers soon started to run dry!
Next time I’ll share all the numbers behind the project – including the breakdown of renovation and administrative expenses, yields and ROI.
But for now, here are the before and after photos of the “easy” buy to let property experiment.