I was talking to a landlord recently and they asked me for my opinion on what to look for when purchasing a Buy to Let property. One piece of advice I was able to offer was that a good property should sell when you need to release funds. So, if you are a landlord considering buying a property to let out, you want to buy a property that is saleable.
You can work out how saleable the properties in a particular street are by comparing the number of house sales to the number of properties in that street. The higher the number, the more saleable the properties are.
So, in Dunstable, the most saleable street is Waterlow Road. There are 96 properties in the street and since 1995, there have been 146 property sales which is an impressive 152% sales to properties. Next is Abbey Mews at 147% and property here is at the affordable end of the scale for the first time landlord.
In Waterlow Road a 2 bedroom terraced house bought in 2012 for £142,500 will rent for about £725 per month giving you a rental yield of 6%
In Abbey Mews the average price is just shy of £100,000 and this will give a rental yield of over 6%.
One lucky person bought a 1 bed apartment in Abbey Mews for £82,000 in 2012 which would give him an 8% rental yield. This same apartment sold in 2006 for £104,000 and in 2003 for £86,000.
Whether you are landlord of ours or not, feel free to pop into our office on Church St for our opinion on what to invest in or not, as the case may be.
