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30.4%
Total ROCE
£1,550
Monthly Rental
£18,000
Day 1 Equity
6.6%
Gross Rental Yield
Uncover the full success story

Stevenage Old Town 2-Bed House Secured with Private Driveway

Through structured negotiation and local market insight, Unity Investments acquired this well-presented two-bedroom house in Stevenage Old Town 6% below guide price, delivering immediate equity and sustainable rental income in one of the area’s most sought-after locations.

Property Overview

  • Property
    2-bedroom house
  • Location
    Stevenage Old Town, Hertfordshire
  • Purchase Date
    July 2025

Key purchase details

  • Purchase price:
    £282,000
  • Comparable market value at purchase:
    £300,000
  • Below market discount:
    £18,000 (6.00%)

Fnding breakown

  • Total cash invested:
    £70,500
  • Deposit (25%):
    £70,500
  • Mortgage:
    £211,500 @ 5.5% interest only

Why selected

  • Below verified comparable market value
    £282k purchase vs £300k market value (6.00% discount)
  • Strong rental demand
    Popular commuter location
  • Modern specification:
    Low maintenance, freehold

Equity Position

  • Estimated Market Value Today:
    £305,000
  • Instant Equity from Purchase:
    £18,000
  • Months Since Purchase:
    7 months

Additional costs

  • Stamp Duty:
    £2,820 (additional property rate)
  • Legal fees:
    £750
  • Survey and miscellaneous:
    £1,000

Financial Performance Dashboard

This section breaks down the property’s performance in clear, measurable terms. From headline yields and leveraged returns to the monthly cash flow position, you can see exactly how this investment is working. The figures highlight not just the strength of the rental income, but also the impact of market growth and smart financing, giving a complete picture of both immediate income and long-term wealth creation.

Yield Analysis

Local Average Gross Yield
5.8%
Your Gross Yield
6.6%
+0.15 above local market
Compared to similar Stevenage homes, this property delivers stronger rental returns while providing a low-risk investment for income-focused investors.
Gross Rental Yield: 
6.6%
Calculated as (£1,550 × 12) ÷ £282,000 → Annual rent ÷ purchase price

Return on Capital Employed (ROCE)

Rental ROCE
4.87%
Total ROCE
30.4%
The property generates consistent returns from rental income relative to invested capital.
Total ROCE: 
30.4%
Calculated as £3,432 ÷ £70,500 → Annual net rental ÷ deposit

Return on Capital Employed (ROCE)

Traditional Cash Savings generates just £400/year per £10k
£400
Property Investment generates over £2700/year per £10k
£4,128
Property investment is up to
6.05x harder working
Monthly Cash Flow Waterfall
This breakdown shows exactly how your investment generates income each month. Starting with rental income, we account for mortgage payments, management fees, insurance, and maintenance costs to arrive at your net monthly profit. Understanding this flow helps you see the true cash generation potential of the property and how your money is working for you in real time.
Income / Expense
Amount (£)
Running total (£)
Rental Income
1,550
1,550
Mortgage Payment
-969
1
Management Fee (10%)
1
1
Insurance
-40
1
Maintenance Reserve
-100
1
Net Monthly Profit
-
£1

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Equity Position:
Conservative Estimate

This section highlights the equity created from our property acquisitions, based on conservative assumptions. It shows the value gained on day one through below-market purchases, and provides a snapshot of the current position, taking into account recent market activity and mortgage balances. This approach helps investors understand the potential upside while maintaining a cautious, realistic perspective.

Timeline & Milestones:
Turning Strategy into Results

This section highlights the equity created from our property acquisitions, based on conservative assumptions. It shows the value gained on day one through below-market purchases, and provides a snapshot of the current position, taking into account recent market activity and mortgage balances. This approach helps investors understand the potential upside while maintaining a cautious, realistic perspective.
Week 1
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Initial consultation with Unity
Week 2
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Property sourced & presented
Week 3
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Offer accepted
Week 5
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Mortgage application submitted
Week 8
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Survey & legals completed
Week 12
Exchange & completion
Week 13
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Property listed for rent
Week 14
First tenant moved in

The Property Behind the Numbers

The property itself, highlighting the features that underpin Unity’s investment strategy.
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From Strategy to Success: Investor Stories

Each investor who works with Unity Investments brings their own goals and ambitions, from building long term wealth to generating steady income.

Through careful planning, personalised strategies, and hands on support, our clients turn property opportunities into measurable success - achieving results that align with their financial objectives and giving them confidence in every step of their investment journey.

Background:

James, a marketing manager, and Sophie, a creative director, balance busy careers with family life and enjoy weekends exploring local parks, museums, and family-friendly activities. This is their first property investment, focused on a commuter-friendly home that generates stable income while building equity for the future.

Investment Goal:

To create long-term financial security by strategically acquiring residential properties that combine steady rental income with capital growth. They prefer low-maintenance, well-located homes that don’t require constant oversight.

Why This Strategy:

“We wanted a hands-off investment that could deliver growth steadily without taking up our evenings or weekends. The Stevenage house ticks all the boxes — great location, easy to manage, and good tenant demand.”

Future Plans:

James and Sophie plan to gradually expand their portfolio over the next 5 years, targeting similar commuter towns with strong rental demand and long-term growth potential.

“Unity made the Stevenage property investment effortless. They sourced the home and managed the process, and it’s already generating reliable rental income while fitting our long-term portfolio goals.” – Sophie
James and Sophie Matthews

Why This Investment Works

This Stevenage Old Town property demonstrates how carefully selected commuter-market homes can provide stability, scarcity value, and long-term capital growth.
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Strategy Success

Immediate equity secured through below-market acquisition.

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Accessible entry point

£70,500 initial capital deployed into London commuter property.

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Income generation

£286 per month net income after all operational costs.

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Risk mitigation

Built-in equity buffer of 6% at acquisition.

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Rental ROCE

4.87% annual return on capital from income alone.

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Total ROCE

30.4% combining rental income and equity position.

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Scalability

Similar opportunities available to support structured portfolio growth.

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Savings comparison

Traditional savings at 4% materially underperform compared to structured property acquisition.

Start Your Investment Journey with Unity Today

Understanding exactly how to buy investment property is the first step to building wealth through London property. Our proven process removes complexity while maintaining complete transparency.
Next Step:
Book Your Free Consultation to discuss how our process can work for your specific investment goals.
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