Which semi-detached
house should I buy in Chichester? One of our landlords asked if they should buy
a 3 or 2 bed semi-detached property 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 good yield?
Answering this
question will help you figure out which properties you should buy...The average
asking price of a 3 bed semi in Chichester is £348,500 today compared to
£326,000 for a 2 bed semi. The 3 bed semi achieves an average rental price of £1200
per month compared to £950 per month for a two bed semi.
That’s a yield of
3.5% for the 2 bed against 4.1% for the 3 bed. So surely, the 3 bed semi is the
better bet? Well it does offer a better rate of return, but the 2 bed semi is
slightly easier to rent out (less void periods) and the lack of 2 bedroom
houses on the sales market compared to 3 bedroom semi’s (12 x 2 beds versus 44
x 3 beds) indicate that these will be easier to sell in the future.
If you would like
more information please give me a call on 01243 887887
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