Wednesday 1 April 2015

Property investment update - offer accepted

I've mentioned a few times in the last year my plans to use some of my cash reserves to add a new property investment to my assets.

This is partly due to a positive experience with my existing property investment, partly my reluctance to materially increase my stock market investments, and partly due to my desire to earn a greater yield than that available on cash.  My cash reserves have also been well above my target for some time.

Following some on and off research starting last summer i've finally got around to putting in an offer on a property, which has just been accepted.

In terms of numbers, it isn't huge, but does yield well above my existing property with a potential gross yield over 6% and a net yield after taxes & costs over 4%.  It looks to be in excellent condition so it should be possible to get it onto the rental market quickly after completion.

Away from the numbers, i found it refreshingly easy & emotionless bidding for a property purely as an investment rather than somewhere i would be living.  Hopefully the legal side will run as smoothly over the coming weeks.

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