I thought this week I would focus on 2 bedroom freehold properties, as this seems to be what most of our investor landlords are wanting to buy to add to their portfolios.
So, I’m starting the week with this lovely property. It’s a coach house, on Chelmer Road and looks in lovely condition. Doesn’t need anything to be done to it before you move a tenant in. Although, don’t take my word for it, you need to view it to be sure!
We rented out the adjoining coach house last Autumn and achieved £875 pcm, however the rental market has moved forward since then and I would be recommending a rental valuation of £900 pcm now. Beresfords have got it on the market for £220,000, so when we calculate the annual yield potential, we are looking at a return of 4.9%. This is about the norm for a freehold investment property in the Chelmsford area.
The rental market at the moment is suffering from a lack of property stock, this can be attributed to the fact that tenants are renewing their tenancies and not moving out, therefore the natural ‘churn’ of property is not coming to the market. This means we are having to rely on ‘new’ property stock to come to the market, which is why it is important for investors, new and old, to ensure that they buy the right kind of property. That’s what we are here for, to guide you in the right direction.
If you are thinking about investing in property, why not pop into our office on Duke Street, for a cuppa and a chat