Landlords wondering if a one bedroom flat in the North Birmingham postcode of B24 is a good buy to let investment should read on. Despite this being a desirable area of Erdington, it is still possible to pick up excellent bargains of properties below market value, and/or with a high rental yield. So, is buying a one bedroom flat in Erdington, B24 a good buy to let investment?
The average price paid for a one bedroom flat in this area in the past 12 months is £85,889, and the current average value £100,880, although current asking prices are actually averaging at far below this – around the £75,000 mark.
The current monthly rents for a one bedroom flat in this area average at £464 pcm. Using these statistics we are able to work out the best and worst rental yields using these figures. If you were to buy a one bed flat for £100,000 and charge £465 pcm rent, you would have a net yield of 5.43% (this takes into account 2.8% purchasing costs).
If you were to bag a bargain and pay just £75,000 however, charging the same rent pcm, it would give a net yield of 7.24%. Of course if you were buying a top end £100,000 flat then you would be likely charging more than the average rent, which in turn would cause your yield to rise, but these figures give an idea.
As you can see there is much scope for excellent returns on a buy to let investment of a one bed flat in the Erdington area. The national average rental yield of a one bedroom flat is 5.9%, as reported by The LendInvest Buy-to-Let Index, from the first part of 2015, and buying to let in Erdington is likely to give a greater return than this.
Call Belvoir Erdington 0121 350 4441 and speak to our team re our latest buy to let properties in Erdington