PM SPV 69
Tenanted 2 Bedroom, Terrace Property
About this property
- Two-bedroom terraced house located in Ashington, Northumberland
- Tenanted at £525 per calendar month
- Property has been secured at £55,000 which reflects a 27% discount to the independent market value
The terraced house is located in Ashington and comprises of a reception, hallway and kitchen on the ground level, with two bedrooms and bathroom situated on the first floor. The property is in good rentable condition and doesn’t need any renovation work carried out. It is currently tenanted for a monthly sum of £525.
The property is just north of River Wansbeck and situated close to local amenities such as shops, schools, restaurants, a children’s indoor play area, and car dealerships. The property benefits from close access to public transport with a bus stop situated just a couple of meters away, meaning catching the bus to the nearby shopping areas, universities and the daily commute to work can be made slightly easier.
A RICS survey carried out on 24th October values the property at £75,000, which equates to the property being purchased at a discount of £20,000 (27%) to the market value.
The Royal Institute of Chartered Surveyors have predicted a 3% property price increase for the North East which is used in our projected return calculations. You can see more information on our blog post HERE but please remember that property prices can go down as well as up.
There is an additional ‘Acquisition cost’ (shown as 'Furniture cost') which represents a finance fee paid to PMF A Ltd, and property management disbursements (auction fee, inventory, checkout, inspection, visit). This structure can provide access to new routes of property sourcing at large discounts. In addition, a monthly Accounting Fee and Corporate Governance fee of £25 and £20 respectively has been factored into the rental yield calculation (this is shown as an annual 'Service Charge' cost and represents £420 of the total).
Please bear with us while we update the names of these fields on the website. To confirm, the projected returns are net of these fees. There is no British Gas utility cover on this property, and the insurance cost of £289.21 per annum reflects the landlord insurance, which is put in place on all investments and also now benefits from a rent recovery option in the unlikely instance that a tenant may withhold payment of rent.
About the area
With this significant rise in student accommodation, we believe the demand for jobs may increase. Due to the size of Newcastle and the North East, a concerted focus on job creation is predicted to have a similar effect as adding two new major cities to the UK economy.
Newcastle Upon Tyne has a lot to offer, with future economic predictions of over 9,500 jobs to be created within Newcastle over the decade from 2013. Growth is expected in a wide variety of professions including scientific, business, hospitality and retail services, creating even more of a buzz in this fantastic city.
When it comes to ‘Things to do’, Newcastle is full of personality and is home to the ‘Angel of the North’ which is believed to be the biggest Angel sculpture in the world, and is reported to be seen by 150,000 people each year.