WHAT’S LETTING BEST? Quarter 1 round up
We have had a busy start to the year despite all the snow getting in the way. Many properties have been letting on the first viewing and sometimes within 24 hours of being listed. There definitely seems to be a trend in the types of property letting and also the areas which are most popular.
The important questions on investors minds are:
- Where should I buy?
- What type of property should I buy?
- What are the expected returns in these areas?
We can help answer these questions by providing specific examples of houses we have let and what we consider hot or popular areas and point out why they let so easily. This should then help investors make wise choices in sourcing their buy-to-let properties.
Lea Yield Close, Stirchley- studio apartment
Stirchley is an area that has been very popular for a long time now. Virtually any 2 or 3 bed terraced house (typical of the area) lets on the first viewing with the landlord having at least 2-3 offers to choose from. This particular apartment was completely refurbished by the landlord to a very high standard prior to letting and subsequently let on the 1st viewing. In terms of yield- this particular apartment is giving a gross yield of approx. 12%. 2-3 bed houses generally achieve around 5.5-6% and the capital growth has been very strong in the last few years.
This area generally attracts professional couples working in the city centre or the outskirts who are looking to rent at least 1-2 years while they settle in an area.
Redburn Close, Kings Norton- 1 bedroom maisonette
This 1 bedroom maisonette was snapped up at auction and was in need of complete refurbishment. The landlord gutted it and put in good quality fixtures and fittings and it proved very popular as soon as it went on the market. It let on the 1st viewing for the full asking rent to a single professional. The gross yield was approximately 10%.
Kings Norton seems to be an up and coming area for letting and properties that come on the market get lots of interest. The yields in this area tend to be higher than that of Stirchley and Moseley which are in vogue at the moment and consequently are more expensive to buy. As an investor you may well be able to pick up a cheap property which perhaps needs a little work and achieve a very good yield.
Miller Close, Bromsgrove- 2 bedroom bungalow
This 2 bedroom bungalow is quite a rarity on the lettings market. Bungalows are very few and far between and consequently there is a big demand and they get snapped up quickly. This property let on the 1st viewing, at the full asking price.
Bromsgrove is a desirable place to live as it not only offers excellent commuter links via the M5 and the train station but also a bustling high street with a good selection of shops and supermarkets.
If you are thinking of exploring the buy to let market and would like some guidance, then please contact Thomas Miller on 0121 445 7410 or email email@example.com.