Northampton : What can you buy for £120k?

When most people look for a buy-to-let investment, they have a budget. With that in mind, over the next few weeks, I’m going to look at what a given sum should buy you in Northampton. In doing this, I’m talking about properties in good lettable order, so if a property needs works doing, this is what you should budget INCLUDING works.

Have a read, and if you want a chat about properties you've seen, EMAIL ME! richard.baker@belvoirlettings.com.

What will £135k buy in Northampton?

At this price range, we're opening the door into some of the better areas of town. Often rental yield doesn't increase with property value, so this price band is the stomping ground of landlords who are are 'area conscious'. There are also deals to be had with larger properties in middling areas. Things you can consider include:

2 bed houses in East Hunsbury / Duston. First time landlords always seem attracted to these, but you'll need to pay at least £120k to get one. Keep a very close eye on property condition as well - the housing stock is about 25 years old, so if no work has been done in the interim, these properties can cost you a lot of money. They also don't rent for any more than a nice modern 2 bed in other areas - £575PCM, so the yield isn't great at 5.7% - if you buy here, you're doing so because you want the area. You should also ask yourself why you're here and not somewhere else (in my honest opinion!).

2/3 bed houses in nicer Victorian areas. For about £120k, you'll get a 2 bed or maybe a 3 bed with a downstairs bathroom, in one of the better Victorian areas - maybe Poets Corner or Abington. You'll probably get £600PCM for one of these if it's good, so the yield is 6%. This isn't the best, but at least you have the comfort factor of the area. Again, at this price it has to be modern inside - no 70's wallpaper and bathrooms without showers please!

The higher yield option in this price range is to buy a 3 bed property, maybe with a garage, in one of the more 'family' areas of town, further out from the centre, but eternally popular none the less. This one is in Ecton Brook - an investor recently paid just short of £120k, and it will fetch £650PCM, so we're up at 6.5% - about as good as you'll get in the family market. Very good renters too.

What can you buy for £60k? http://bit.ly/Ihmpxt 
What can you buy for £80k? http://bit.ly/Kq3VhL 
What can you buy for £100k? http://bit.ly/LcfYNa