Buy-to-Let Deal of the Day - 4% Gross Yield Close To High Schools

I was interested to hear last week that the average first time buyer now earns over £50,000 per year and has to provide a deposit in the region of £30,000 to get onto the housing ladder.

It is no surprise then that many people are now considering renting as a long term alternative to buying. This maturing tenant market means that good quality family homes to close to local schools are always in demand. 

Looking on Rightmove this morning I noticed this charming three bedroom cottage on Grove Road (just off Kingsham Road, near the High Schools).

http://www.rightmove.co.uk/property-for-sale/property-39400887.html 

On the market with Cubitt & West estate agents at offers over £300,000, the property has been extended into the loft space to create three decent sized bedrooms, ideal for a growing family and looks in lovely condition judging by the photographs.

Rental values for three bedroom houses in Grove Road have been known to reach £1125pcm however I feel a more conservative £995pcm is reasonable for this particular property.

A purchase at the £300k mark with a rent of £995pcm would return a healthy 4% yield. Sale prices in Grove Road are also rising at an encouraging rate of over 18% over the last 5 years, meaning that a property of this ilk could make a savvy buy-to-let investment.