Nuneaton 5.7% yield VS a 7.09% yield.

aberdeen   vs  fife street

This morning after talking with a potential investor currently living abroad, I thought it would be interesting to do a comparison on Nuneaton properties that are currently on the market. Comparing areas, prices and the properties themselves. He was questioning whether its worth spending more on a ‘new build’ property as opposed to the usual traditional terrace properties that we so often see for sale.

So I picked 2 houses to do this comparison on. The first is a 2 bedroom, semi- detached property in the more desirable Nuneaton location- Attleborough. It’s on an estate that which over the past 10 years has been built so the property itself isn’t old, it is however small, which is one of the downsides to the new build 2 bedrooms these days. This property is on the market with Your Move for £125,000, and I think an achievable monthly rental income would be £600 for this property. This would give you an annual yield of 5.76% which in all honesty isn’t as high as other properties I have spoken about on my blog….but…you are getting a new build property in an area which is classed as a nicer part of Nuneaton. Close to schools which people desperately want to get their children into as well as being ideal situated for Motorway links- appealing to commuters. The only downside being space internally. The rooms are a lot smaller and you only get the one reception room and one double bedroom, this would be ideal for a young working couple or maybe a couple with a young child perhaps. Judging by the photos there wouldn’t be too much work needed to be done to the property, maybe a neutral coat of magnolia throughout and new carpets, nothing too costly.

http://www.zoopla.co.uk/for-sale/details/40157396

 

The second property is a 3 bedroom end of terrace, located on Fife Street 2 minutes walk from Nuneaton town centre. Internally this property is huge, offering 2 reception rooms a large modern kitchen and a large bathroom with separate shower and bath. The first floor has 3 large bedrooms, even the smallest could be a double, with ample landing space. This property is laid out much differently to your bog standard terrace with the kitchen and middle room being very open plan giving a lovely ‘family’ area. This property is on the market with up estates and has an asking price of £109,950. I think you’d be able to achieve a monthly rental income of £650 on this property which would give you a very appealing yield of 7.09%. Location wise, its not classed as the ‘nicer’ part of town, however the area itself is highly desired for its town centre location, the local amenities as well as schools in the area so I know from personal experience this property would fly off the shelves! There is very minimal work that needs to be done on this property, maybe a fresh lick of paint but that really is all.

http://www.zoopla.co.uk/for-sale/details/40529264

 

So… would you pick the 2 bed semi ‘ new build’ at £125,000 in the slightly nicer area of town which offers you location and curb appeal but is substantially smaller internally limiting the type of tenants you could attract with a yield of 5.76%, or the 3 bedroom end of terrace which is £15,000 less to buy and would give you a greater yield of 7.09%, offering more rooms, and larger rooms at that which would appeal to a larger market of tenants, the downside being the lack of ‘curb appeal’ and it not being in the same known desirable location as the 2 bed semi.

I know what I would pick without a doubt, but everyone has their reasons for picking what they pick. I just wanted to give you an idea of what the possibilities would be either way.

I hope this has been insightful and will help you if you are in a similar position to our oversees landlord. If you would like any further advice on your next buy to let purchase in Nuneaton, please give me a call on 02477 674545.