Which terraced house should I buy in Bedford ?One of our landlords asked if they should buy a 3 o...
Which terraced house should I buy in Bedford ?One of our landlords asked if they should buy a 3 or 2 bed terraced property to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a great yield?
Answering this question will help you figure out which properties you should buy...The average asking price of a 3 bed terrace in Bedford in the last 7 days is £248,123 today compared to £171,552 for a 2 bed terrace. The 3 bed terrace achieves an average rental price of £825 per month compared to £700 per month for a two bed terrace.
On these averages that’s a yield of 5% for the 2 bed against 4% for the 3 bed. So surely, the 2 bed semi is the better bet?
Well it does offer a better rate of return, but the 3 bed could be slightly easier to rent out (less void periods) and will be easier to sell in the future.
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