The most important and also the most exciting part of building a solid investment portfolio is to consistently add new investments to the portfolio, for example in the form of investments in real estate or REITs.
Every time I am adding a new position in my property portfolio, I am posting this short report. Inside this report, you will find what I actually bought, an overview of the financials of the investment, and finally what this new purchase added to my annual income.
These reports are here to show you how I reason before making an investment, but also to give you the motivation to do the same and start building your property empire.
Today, I invested a total of 855 Euros in a 3 bedroom house in Oldham, UK.
I made this new investment on the House Crowd, a real estate crowdfunding platform where I already bought similar investments in the past. Here, the property is a 3 bedroom house near Manchester, in the United Kingdom.
Again, thanks to real estate crowdfunding, I’ve been able to invest in such a house. Also, as for all property crowdfunding investments, the property will be completely managed for me.
This is a picture of the property from the outside:
This is a picture from inside the property:
Let’s now have a look at the financials for this property. The total amount required for the investment £129,000, which includes funds for the renovation, insurance, and money to cover unknown future expenses.
The current total monthly rent is at £910. This makes the property yields at a very nice 9.50%. This is a great yield, however you have to remove the 10% management fee of the platform. At the end, this makes the property yield at 8.55%. This is an excellent yield for real estate, and much than the yield of the property I was owning a few years back (and that I had to manage myself!).
Also note that this is a rental that comes with a 5 year lease with a company. This means that there won’t be any void in the property, as the goal is to sell the property in 3 years from now.
This purchase will add 73.10 Euros to my yearly income, based on the expected yield. Thanks for reading this purchase report, and if you have any comment please leave it below!