This investment portfolio presents an intriguing opportunity for those looking to capitalize on both stable income and substantial redevelopment prospects. The current residential leases generate a total annual income of £39,317, with specific properties like 2 Moor Street and 5 Moor Street bringing in £23,040 and £16,277 respectively for the upcoming years. Additionally, two commercial units at 3 and 4 Moor Street are currently vacant but offer estimated rental incomes ranging from £12,000 to £18,000 per annum once assessed. This brings the projected total income to between £50,160 and £56,160 annually.
With a purchase price around £385,000, potential yields range from approximately 13.0% to 14.6%. At a lower end of £350,000, yields could increase to between 14.3% and 16.0%.
Significant development opportunities exist here as well; there is clear potential to convert one of the commercial spaces into a three-bedroom residential unit similar to No. 2 Moor Street. Furthermore, enhancing existing properties through strategic refurbishment can elevate rental values substantially. The dual aspect of maintaining strong baseline income while exploring ways to improve returns offers an enticing path forward for investors willing to engage in property repositioning or redevelopment.
