A landlord came to our office for advice as he was considering one of two three bedrooms properties, one on Burghclere Down and one in Charlton.
We did some research and found that the three bedroomed mid terraced house on Berry Way, Burghclere Down, for sale for £225,000, would probably achieve a rent of £875pcm. The properties in this area are quite popular with families and tend to have a great demand with investors and tenants alike, making it a relatively good investment.
A slightly larger three bedroomed semi detached property in Charlton has a value of £275,000. The possible rent for this property is slightly higher at £995pcm, as it is slightly larger. We found that although the rent can be higher, the annual yield was similar at 4.3%.
This shows that while a property can achieve a higher rents, it does not necessarily mean higher returns.
If you would like any advice when choosing properties, you may come and see us at our offices.