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 Rugby. 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 inRugby
We're now at the top of the typical investment market, the domain of the risk averse landlord who wants to buy in one of the (supposed) better areas and enjoy (supposedly) fewer hassles along the way. The comfort factor is higher - the yield will be lower. Commercially aggressive investors won't spend this much, but investors who own maybe 1 or 2 properties often like the security of this type of investment. It's also interesting to note how many properties advertised for sale in this price band aren't worth the money! There are plenty that should really be in the price band below (up to £120k) but still find themselves advertised for £130k+. Caveat Emptor!
This is a modern 3 bed with a single garage. It's about 5 years old and should, in theory, be far lower maintenance than an older property. Tenants love this sort of thing because the kitchens and bathrooms will be good, and everything will be neutral and clean. £650 should be easily achievable, yielding 5.7% which isn't all that bad!
Alternatively, you could go for the older version of the same thing. You'll get a larger plot, a nicer area (Hillmorton? Bilton?) and a property that you instinctively have a lot of confidence in. The trade off is that this should, in theory, cost you more to maintain than the one above. They'll rent the same money and cost about £135k, so the yield should be very similar.
What will £140k buy in
We're now at the top of the typical investment market, the domain of the risk averse landlord who wants to buy in one of the (supposed) better areas and enjoy (supposedly) fewer hassles along the way. The comfort factor is higher - the yield will be lower. Commercially aggressive investors won't spend this much, but investors who own maybe 1 or 2 properties often like the security of this type of investment. It's also interesting to note how many properties advertised for sale in this price band aren't worth the money! There are plenty that should really be in the price band below (up to £120k) but still find themselves advertised for £130k+. Caveat Emptor!
