Thursday, 25 June 2015
Which flat should I buy in Belper?
Which flat should I buy in Belper? One of our landlords asked if they should buy a 1 or 2 bed flat to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a great yield?
Answering this question will help you figure out which properties you should buy...The average asking price of a 2 bed flat in Belper is £126,000 today compared to £75,000 for a 1 bedroom one (excluding the retirement flats). This is quite a large difference. The 2 bed flat achieves an average rental price of £585 per month compared to £412 per month for a one bed.
That’s a yield of 5.6% for the 2 bed against 6.6% for the 1 bed. So surely, the 1 bed is the better bet? Well it does offer a better rate of return in terms of rental income, but the 2 bed flat is slightly easier to rent out, which means less void periods and will be a little easier to sell in the future. So as they say “you pays your money and take your choice”…but the good news is that Belper is always popular!
If you would like more information pop in to see us at our offices.