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E3

2014

With excellent transport links to the City and Canary Wharf, Bow has seen both a residential and commercial regeneration that has resulted in high demand for property in the area. Parallel development in nearby Mile End, Bethnal Green and Stratford has made Bow a great area for property investment.

 

When this repossessed flat came up for sale in a highly sought-after residential development less than 500m from Bow Road station it was a fantastic opportunity for those that could move quickly. Requiring only a light refurbishment, and with close proximity to transport links, amenities and green space meant this opportunity was the ideal opening to expand the portfolio.

 

Following an initial light refurbishment in 2014 the flat was snapped up for rental within a week. A second refurbishment in 2018 refreshed the property and again was rented out within 48 hours of going on the market.

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This property was owned personally, rather than by the limited company, so the Section 22 tax changes made it unviable to keep as an investment. Therefore, in 2024 we sold the flat and used the proceeds to buy our first holiday rental in Broadstairs on the Kent coast.

Purchase cost: £295,000

Initial refurbishment cost: £3,500

Secondary refurbishment cost: £15,000

Total cost: £313,500

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2024 sale price: £345,000

Rental yield: 7.0%

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