Northampton : What can you buy for £140k?

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 £140k buy in Northampton?

Now we're at the top end of what an investor usually spends - above this we're into 4 bed properties which aren't usually what investors go for.  There's an strong argument that you don't need to spend £140k in Northampton to successfully invest in property, but some people still do. The only reason for doing this is if you want one of the PREMIUM areas of town, or you're going for the family market in one of the 'good' areas like East Hunsbury. Hard nosed commercial investors wouldn't usually do either - this is for investors who aren't fussed about yield, and whose primary consideration is area.

For £140k you can buy pretty much any 2 bed property in Northampton. The most expensive are in places like Grange Park or St Crispin - you'll pay at least £140k for something like the one pictured, and you're looking at £600PCM on a bad day in rent. That's a 5.1% yield - good when you consider what banks pay in interest, not so good when you see what sort of yields are achievable elsewhere. However, tenant quality should be pretty good (even though nothing in life is guaranteed).

A 3 bed house in East Hunsbury or Duston will cost from about £135k upwards, and long term tenant demand is constant. You need to shop carefully at this price, as you're still bargain hunting - many properties will sell for nearer £150k, but with an achievable rent of at least £650PCM, you're chasing a yield of 6.5%. If you can buy something with a garage, even better. Expect to compete with private purchasers for these properties. This one is in Weggs Farm, and would probably rent for nearer £700PCM.

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 
What can you buy for £120k? http://bit.ly/LKSNtF