With property prices in Northampton continuing to creep up, it's increasingly difficult to find something at the bottom end of the market that offers good rental potential. A quick flick through what's available does show a couple of these things advertised currently, so if you're trying to purchase under £100,000 these are worthy of consideration.
> http://www.rightmove.co.uk/property-for-sale/property-63937981.html
> http://www.rightmove.co.uk/property-for-sale/property-62639563.html
> http://www.rightmove.co.uk/property-for-sale/property-70105679.html
In this price band you're always going to be in ex Local Authority areas, but those highlighted above would be properties that are perfectly rentable. Whether you're in love with the are yourself doesn't really matter - we'll find someone to rent it that is. You should be mindful of the lease length which ideally should be somewhere around the 100 year mark and the service charge which, for a 1 bed would usually be less than £70 per month. Any serious deviation from either of these 2 figures would mean the value of the property needs re-assessing.
You're looking at £475 to £500 in rent for one of the above. It looks as though all need an element of improvement so let's assume that once this is done you end up around the £85,000 mark all in. If you put those figures through a calculator that's a return of 5.5% to 6.0% AFTER the service charge is deducted which isn't shabby compared to what else is available locally.
Any questions, please don't hesitate to get in touch with me. richard.baker@belvoir.co.uk
