One of my current landlords popped in to see me the other day, looking at expanding her portfolio from exclusively flats and apartments into the world of popular terrace properties. Buying with the number of bedrooms in mind was one of the first questions at the front of her mind.
Now the first question I asked in response, as is a major consideration when completing on a buy-to-let property, is what she was looking for from the investment – capital growth in the property or a great yield?
Answering this question will help you figure out which properties in Hyde you should buy. The average asking price of a 3 bed terrace in Hyde is currently £154,079 compared to the £124,011 price for a 2 bed terrace.
I’ve based the rental figures on the current properties available to let, with 3 bed terraces on an average rental price of £725pcm, whilst the two beds are averaging £525pcm.
That’s a yield of 5.65% for three bed terraces against a 5.08% yield for the two bed terraces. So for just over half a percent extra yield, does this mean three bedroom terrace houses in Hyde are the one to go for?
Well whilst it does offer a slight better return, my intuition and experience with letting the two bedroom houses depict that they not only let, but also sell quicker courtesy of the cheaper rates. This of course also means less potential for void periods.
It ultimately comes down to whether or not you’re willing to take the risk on void periods for a slightly higher return on your investment.
If you’re looking to invest in Hyde’s property market or expand your property portfolio, regardless of whether you use an agent or not, drop me a line and I’ll be more than happy to help you.