Townhouse next to St Richards Hospital with 5.3% return

When purchasing a buy-to-let it is often difficult to balance the potential capital growth with a healthy annual rental return.

Quite often with flats and apartments there can be several like-for-like properties within a particular block/street that are on the market at the same time, thus the supply is there to feed the demand. Consequently, property prices can sometimes grow at a slower pace than larger houses and bungalows.

Take this four bedroom townhouse in Baxendale Road for example, on the market with Hancock & Partners at £315,000.

http://www.rightmove.co.uk/property-for-sale/property-50118544.html

Having looked at the sold prices in the road over the last 5 years there has been an average price increase of £30,120 (which equates to almost 12%). With house prices predicted to continue to rise the road certainly forecasts encouraging growth.

Looking at the investment from a lettings perspective, this property will attract interest from hospital staff, families, and potentially four professional sharers. Rents of up to £1400pcm have been achieved for similar properties in Baxendale Road, which, based on a £315,000 purchase price, would return an attractive gross yield of 5.3%