Deal or No Deal? A recent off market repossession flat in Chelmsford looked like a strong investment opportunity and was sourced specifically for an investor buyer. The figures initially stacked up based on the information provided, including a stated service charge of £4,000 per annum. However, during the legal process it was revealed that the actual service charge was £7,000 per annum, a significant difference that materially affected the investment returns and overall viability of the deal. As a result, the investor withdrew from the purchase. I don't blame the investor for pulling out. A £3,000 per year difference in service charges can have a major impact on cash flow, yield, and the overall attractiveness of an investment. It does, however, highlight the importance of carrying out thorough due diligence when sourcing your own property investments. Assumptions and verbal information should always be verified, as unexpected issues often only come to light during the legal process. The numbers only work when the information they're based on is accurate. A costly lesson for the vendor, but a valuable reminder that due diligence is one of the most important parts of any property investment. #PropertyInvestment #PropertyInvestor #PropertySourcing #OffMarketProperty #ChelmsfordProperty

Posted by Cameron Buckland at 2026-06-08 09:47:46 UTC