I was speaking to a customer the other day regarding investment properties. He was looking to buy...
I was speaking to a customer the other day regarding investment properties. He was looking to buy in an upcoming auction and asked what's more rentable and a better investment for him. Straight away I replied a three bed, you are getting a better quality of tenant and they are likely to be for a longer term than you would a two bedroom property. You are attracting small families and young professional couples that are looking to settle for a period of time (generally!).
With regards to yields, I thought I would look into what it looks like for a two bed and a three bed property in the Alfreton area.
The current average asking price for a two bedroom property stands at £109,303 with an average rental figure of £459pcm. Compare this to the price of a three bed at £150,247 with a rent of £565pcm there is not much to choose between them. The yield for the two bed comes in at 5% and the three at 4.5%. This of course will vary by street/area, price and other factors such as local schools.
So, like a said before, I would advise on the three bedroom property for quality of tenant and less void periods. They rent out fast, the rental is higher meaning you would expect the tenants to treat it better with the money they are putting into it and they will look to stay for longer periods as it's not generally a step to somewhere bigger.
With property sales up 53% in Alfreton over the last year there may be some bargains out there for you to find, I will keep my eye out for the ideal properties in the area and get back to you!