Hello readers,
A fantastic property on Balmoral Road, Gillingham has come up for sale by auction with a guide price of £165,000. You can view the listing here and the auction date is 15th April.
This three-bedroom property is in need of extensive refurbishment but has excellent potential. I have included the floor plan below and with a full refurbishment, you would be able to convert the space into five or six bedrooms, most with en-suite bathrooms.
The property has a virtual tour, which you can view here and I have uploaded some images of the internals below. You will see that whilst a full refurb is needed, the condition is not all that bad on the surface. There are no immediate obvious issues with this property, but be sure to get a review of the legal pack before making a bid.
With average Gillingham HMO rents ranging between £650-£750 for en-suites and £575-£650 for non-en-suites, this property could offer substantial returns. However, with the property being sold by auction, it’s likely to go somewhat over the guide price which will affect the yield.
Depending on the extent of refurbishment, you could be looking at renovation costs ranging from several tens of thousands of pounds up to six figures, depending on the level of work conducted. The gross rental income could potentially reach between £3,000 and £3,500 per month, with minimal void periods due to the high demand in this area.
With the property being sold by auction, remember that fees will need to be paid and you will need to have your finance lined up in order to complete quickly. It’s likely you will need bridging finance to purchase this property and I would recommend Wharf Financial, who will be able to assist.
Medway, particularly Gillingham, continues to be a strong area for investment, especially within the HMO market. This property could be a promising opportunity for the right investor.
For more advice or details about converting this property, feel free to drop me an email on hasan@home-share.co.uk.
Hasan
