Set in a period property, this spacious ground floor conversion flat comprises of two bedrooms, one with a master ensuite shower room/WC along with a modern open plan kitchen to hallway and open arch to living room with further bathroom/WC. The property is tastefully decorated with lots of personal touches. The property has been secured using an Option Agreement, at a purchase price of £255,000. It requires a minimal refurbishment of £2,000 which will also make it more desirable to rent.
Investors will receive 100% of the net rental income (after deducting mortgage interest payments, managing fees and maintenance costs). The expected monthly rent of £1,100 and a lifetime base rate tracker mortgage rate of 2.9% means an attractive net rental yield (after deducting all rental costs) of 5.69% per year for investors.
The property is in a residential area, close to schools, and has good proximity to transport links at Selhurst and West Croydon rail stations. All this means it has strong rental and growth potential.
This strategy involves an Option Agreement to buy or sell the property as outlined in the contracts upon investing. The investor funds are used for the deposit and other acquisition costs. Crowd with Us take over the seller's mortgage with the Option contract drafted by a specialist property lawyer. Once the property value has increased by 50% in relation to the total acquisition costs (after the deduction of sales costs), the property will be sold and upon completion the sale profits will be split 50/50 between Develop with Us and the Investors. For this deal, the Investor funds are 26% of total acquisition costs and the Investors receive 50% of the property sale profits, hence the highly leveraged projected return.
100% of the rental income after all running costs are paid to the Investors. This income will be subject to the individual's personal tax regime (please seek advice from a tax expert).