Today I was just flicking through the auction catalogues when I came across a repossessed flat – didn’t look anything special. BUT what got me was the guide price – just £7,000 – yes £7,000!
So what do you get for £7,000?
Well here is the external:
And the internal:
Amazingly for just £7,000 you have a kitchen, a bathroom, carpets…and windows!!!!
Now I have seen cheap properties in my time – but this is seriously cheap! I mean this is not Bulgaria…although it is Washington, Tyne and Wear which is North East….but it’s still the UK!
So I’ve done some research on Rightmove, Zoopla and other property portals and I’ve discovered this flat was for sale with an estate agent before the auction with a price of £9,950.
So I deduce that it must be a festing ground of drug addicted crime ridden inbreds – and I check the Police Crime Website expecting to have my beliefs confirmed..BUT low and behold the level of crime and anti-social behaviour in this area is average for the UK! Although I note commentary on the site regarding the area:
“Washington Neighbourhood Policing Team has been running Operation Horizon for the past seven months which has provided extra police officers, community support officers and a dedicated anti social behaviour officer from Sunderland City Council…Overall crime in Washington continues to reduce and for the current year to date, we have achieved a reduction of almost 15% in reported crime.”
OK – so it would appear they have some issues…but they are tackling them and they are seeing a reduction in reported crime – that’s got to be a positive sign?
The ACORN classification for the neighbourhood profile says:
“Often, many of the people who live in this sort of postcode will be low income singles living in small rented flats….People have average educational qualifications. Their relatively routine jobs are in shops and offices, and there is some unemployment….Few people own a car, with those who do paying high insurance premiums. Most get about on foot, by bike, or public transport. The pub is a relatively popular place for eating, either at lunch-time or in the evening. Leisure interests tend to be football and betting on the horses. At home they might unwind by listening to music or reading a novel. There is a keen interest in self-improvement and education”
OK – so the type of people who live here may be single and poor – but at least they’re interested in improving themselves 🙂
Unbelievably I have also found a flat in the same block which has rented recently at £325pcm.
Now let’s just do the yield on this.
So if I buy this flat at £7,000 and I rent it for £325 pcm then the yield would be a mammoth: 55.7%!!!!
Maybe I should take a drive to Sunderland?