I bumped into an old school friend the other day and he said “Ohhh, I’ve been reading the blog and I wanted to come and talk to you about investing a couple of properties in Nuneaton. I’m thinking of doing it as a little retirement plan for the family. I’ll catch up with you to find out what properties would be best to invest in and we’ll go from there”. Well my friend, this article is for you!
Now a couple of years ago I would’ve said, get a 3 bed terraced at a good price and it’ll be a nice little earner with an annual yield of around 7-8%. Is it still the same now?
Well I got to doing a bit of research and looked at the following property types within a mile radius of Nuneaton town centre: 2 bedroom terrace, 2 bedroom semi, 3 bedroom terrace and 3 bedroom semi. I looked at the cost to buy as well as how much rent they are going for at the minute (I know, you’re thinking “blimey this lady is efficient”. I thought that too!) and this is what I found (please note this research was done 25th April 2018):
CLICK ON THE IMAGE TO ENLARGE IT…
What I was most surprised by in my research was how VERY similar the prices are for 3 bed terraced and 3 bed semi-detached properties. At the minute, the most popular price for both seems to be £149,950.
So this has blown my original theory from two years ago out of the water….or has it?
If someone had bought a 3 bed terraced house as an investment a couple of years ago they would’ve paid, on average, just over £100,000 (based on sold prices in 2016 for 3 bed terraced properties). So if I gave you that advice two years ago and you’re now nearly £50,000 richer, you are welcome!
Despite the average figures as listed above, it’s not to say you can’t still grab a bargain and get a decent annual yield from it. For example, I’ve found a 3 bed Terrace house on Alexander Street (off Edward Street), which is a 5 minute walk to Nuneaton town centre, close local amenities and walking distance to the hospital etc for £107,500. Now it does need a little TLC but it could rent for £625/month (minimum) giving you an annual yield of 6.98%, which is pretty darn good considering the figures above.
So, take from this article what you will. The evidence suggest the yields aren’t great on 3 bed terrace properties, however…and it’s a big however, if you find one at the right price, it could be VERY rewarding because, as we have seen, you get a good annual yield and a decent return on investment…you couldn’t ask for more!
I hope you have found this article useful and it has provided some insight into the Nuneaton property market for you eager property investors. If you would like to discuss anything mentioned in this article or fancy popping in for a chat, we’d love to help. For more info on us and how to get in touch, please feel free to visit out website.