I was chatting to a landlord the other day about how the rental market is maturing.
What I mean by this is that people who started out renting a one bedroom flat, are now a bit older, have a partner, children etc and have moved on to larger flats or for preference houses with their own garden.
This one http://www.tspc.co.uk/3-Bed-Detached-Villa-For-Sale-61b-Gillburn-Road-Dundee-DD3-0AJ , which is being advertised by Thorntons is a classic example.
It’s a modern, small, detached family home close to the local school and amenities, with GCH, DG garden etc. Its two double and one single bedroom suit a new family ideally.
Now with an asking price of £150,000 and a rent of lets say around £585 its not a stunning yield at 4.2%, though I do try to be conservative about these things. However as I keep saying property is for the medium to long term and detached properties in this area have achieved a capital appreciation of over 20% in the last five years.
