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latest deal dec 18 Hollins Rd Hollinwood just outside M60

Dear Investor,

The house is an end terrace 2 bedroom very well located  on Hollins rd , Hollinwood very close to Failsworth and the m6o Failsworth Junction with easy access to the town center.

The house is quite large relative to the average 2 Bed terrace 
The house has 2 reception rooms downstairs with the kitchen at the back of 2nd reception room which is in ok condition .
Upstairs the house has 2 Double Bedrooms . The front bedroom is very large and could be split to make a 3rd bedroom.
The Bathroom is located on top of kitchen with a large shower but no bath .
The house's general  condition is ok and even though it may  let as is ,the  decor is a bit dated and could do with say 3k input .
We estimate a rental income of around 530pcm
The agent has advised that the vendor may accept 85k (perhaps a bit less)

This seems to be a good investment with the property being very well located and an estimated good return on investment
The properties prices in this  area are very much on the rise 

Please find property info and pictures in attachment below.

  • We have just secured the property detailed below for £83,000, which is in our opinion a very good buy.  It is a 2 large bedroom brick and tile on street  end terrace in well kept but very dated condition.
    Hollinwood is an area just outside the M60 (and this house is very close to the M60) bordering on Failsworth which is on the inside of the M60 at that point.  Houses in Droylsden (just south of Failsworth) have gone up to around £120,000 for a typical quasi semi or good terrace, similar houses in Failsworth  have gone up to £105,000, yet here they are still lagging behind.  We have recently agreed on another house in the area at £85,000, on another one (3 bedroom) round the corner at £89750 (the side streets around here go for £110,000+ for 3 bedders) so even though this one is on the cheaper main road, it is still, in our opinion, likely to catch up to at least to the mid-nineties very quickly.  A couple of houses did sell cheaper recently, but the agent says that is because they needed a lot of works, and that this house is a very good deal even at the late eighties.  They put it on at just under £90,000 reflecting it's very old fashioned (though well kept)  condition, and the owners seem to have got fed up waiting (this is a very slow time of year and we often get reductions like this at this time of year) so they have come down to what we agreed to pay.
    I lay out below an approximate financial prospectus - this is our view based on experience, but we cannot guarantee anything!

    Purchase price £83,000
    Finder's fee £2500
    Legals £1250
    Survey £350
    Works allow £3000
    stamp duty £2490
    So total outlay  £95590
    Expected gross income  £530pcm = £6360 pa = 6.7%
    Expected net income allowing 10% management and average £750 annual maintenance = £4974 = 5.2%

    At present very cheap buy-to-let loans this should produce an income even after interest payments.

    Property prices in Manchester have been rising steadily over the last couple of years, without any dampening due to Brexit or other reasons.  There is an opinion held by some major agents that as prices in the Southeast soften, prices here rise and that the NorthSouth price differential is likely to decrease over time.  In our opinion this house has an immediate inbuilt growthg potential due to its proximity to other areas which have risen more.  It is very conveniently located for cammunting into central Manchester and around the M60.

    Please let me know asap if this interests you.  We recommend it highly.  

    If you do want it, please give us the purchaser name, id, some proof of funds of deposit, and your  solicitor details.

    Best regards,