I was talking to one of my landlords recently when the subject of flats came up and whether they would make a good investment. Flats are not always the first choice for investors but they rent very well and generally offer good yields. There is a strong argument that buying a flat these days is not an issue as they are sensibly priced, the error people made in the past was buying them at the start of this century for more than the price of a house.
If you are a landlord with a limited budget, you can still find a decent property to let in Andover. Typically, a two bedroomed modern apartment can be bought for around £130,000 in the town centre of Andover in areas such as Heather Drive or Forge Field – the average rent for a property here is likely to be around £650 per month.
Always remember though, when buying a 2 bedroom flat, try to get two double bedrooms as this will inevitably make the property more popular and opens the market to sharers which is becoming a larger part of the rental market in this area.
Also remember with flats to factor into your figures management fees, ground rent etc. These will usually be lower on ex local authority flats but they do not hold much of a sinking fund so you may have to stump up further funds as required for major works.
So, should you consider a two bedroom flat as a good investment? Yes. Yes you should.