I saw this house and I thought what a great property this would be for an investment. It looks immaculate inside and these houses are always really popular with the rental market, due to their location and size.
It has just come on to the market for £222,995, which feels like the right sort of money, considering the prices of some other similar properties on the market at the moment, it seems to me that the Vendor is looking to achieve a quick sale. This property would probably rent in the region of £900 – £950 pcm, which would generate you an annual yield of 4.8% – 5.1%.
Another interesting factor which I wanted to point out is the actual increase in capital growth. As we have spoken about many times, it is not always down to the biggest ‘yield’, the rise in value should also be taken into account. Some houses may not generate a high yield, but their capital growth potential is far greater. This particular property was last sold in 2011 for £193,000. If it achieves it’s asking price of £222,995, you are looking at a 15% increase in capital in just 3 years! The majority of this rise to be fair would probably have been just in the last year alone.
If you would like any advice on where to buy (or where not for that matter), feel free to drop me a line at stephen.frost@martinco.com
