Whilst looking through Zoopla this morning and properties for sale in Nuneaton which would make good buy to lets (which doesn’t take long these days as they seem to be flying off the shelves) I came across 2 very similar properties within under a mile radius of each other.
The first property is on Clifton Road in Nuneaton, an end of terrace house 2, bedrooms, 2 reception rooms, up for a guide price of £84,950. This house would need a LOT of work doing to it to make it modern and aesthetically pleasing to potential tenants, including central heating so I would estimate £10,000 as a budget in order to do this house up. Once this was done you’d be able to rent it out for £550-£575 per month which after you take into account the money you’d spend fixing it up, would give you an annual yield of 6.95% -7.26% both impressive figures!
This property id being marketed by Pointons: http://www.zoopla.co.uk/for-sale/details/39780942
The second property is on Clarence street and is being marketed by Your move at £90,000. I do know a little bit about this property- it was left to the children of an elderly man, and a lot of work has been done to it to modernise it over the past 18 months so has been empty quite some time. Judging by the pictures this property could be let straight away without any work- therefor any money, needing to be spent on it. This house only has one reception room and a uniquely set out kitchen, with 2 bedrooms and bathroom upstairs. If you were to put an offer in for £88,000 and it was to get accepted, this could then be rented out for around £550 a month which give you an annual yield of 7.5%.
So….do you pick the property that you would have to invest time and money in, which has slightly more sq foot of space, or the property that is slightly smaller, needs no work doing to it, and has a slightly higher yield?
Its a tough one my friends, but if you would like to speak to us more on our thoughts about either of this properties, please feel free to give us a call on 02477 674 545