Here is a 2 bedroom terraced house on Clifton Road, which is on the market for £109,950. It is in need of some TLC and it is a slightly quirky layout but, it could still make a good investment property.
If this was done up to a nice standard, it could probably fetch around £600- £650/month rent (depending on the finish), giving you an annual yield of 7.09% (max) (not including the cost of the works involved).
Clifton Road is a one way road about 10 minutes walk from Nuneaton town centre. It is close to local amenities as well as schools and popular commuting links. We currently have 2 properties on Clifton Road and never struggle to rent them out.
This looks like one of the best “bargains” to be had at the minute so I’m sure it won’t hang around for long!
I regularly look on the property portals to see what’s for sale in Nuneaton and to find that gem that I consider to be a “star buy” for investors. I’m sure most of you do too.
Now, I don’t know about you, but I’m thinking half of the estate agents were drunk when they valued some of these houses because….daaaaaaamn! They are a lot of money for a big lot of mess! There were so many 2 & 3 beds listed for £130,000 and some were in need of a complete overhaul!
Looking back over the last 10 months (bearing in mind there’s a pandemic going on….in case you hadn’t heard) there has been 101 potential investment properties listed for sale, 37 three bedroom properties and 62 two bedroom properties (terraced houses). Once I averaged out the price of the 2 beds and 3 beds, guess what I found?….
Now, it might look like a big difference on the chart but, bare in mind that the graph increases in £10’s. In a nutshell, the average asking price for a 2 bedroom investment property was £118,585 and the average asking price for a 3 bedroom investment property was £118,629. Go figure!
What does this mean for your annual yield? Well, a two bedroom property in Nuneaton will fetch, on average, £642/month rent and a three bedroom property in Nuneaton will fetch £668/month rent (although, these look low in my opinion). So, based on my findings, you could buy a 2 bed terraced house for £118,585 and get £642/month rent, giving you an annual yield of 6.5% OR you buy a 3 bedroom terraced house for £118,629 and get £668/month, giving you an annual yield of 6.76%.
Is it just me or does this sound completely bonkers?
The good news is that I have found a couple of star buys amongst the madness but, guaranteed, they will be in high demand.
If you are looking for an investment property to buy at a good price before it even gets advertised on the property portals, feel free to get in touch to ask more about our investment programme.
Only Joking! What a boring blog post that would’ve been.
We have investors from all over the place contacting us to find out where in Nuneaton they should invest. Those of us who live in Nuneaton and know the areas well may have our own ideas but, as a Letting agent who has had properties all over Nuneaton, I can assure you that any area of Nuneaton is popular for rentals.
A quick breakdown for you:
Properties near the town centre (CV11 4 and CV11 5)- usually get let before we even get to advertise them! People love the terraced houses skirting the town centre. Mostly because of the convenience of town (especially if they don’t drive), being close to the train station is usually a winner for those who have to commute for work, there are several good primary & secondary schools close by and people often like to be close to all the local amenities just a stones throw away.
Stockingford (CV10 7 and CV10 8)- slightly out of town but it comes with it’s own benefits like access popular commuting links. George Eliot hospital is close by so you usually get a lot of medical professions enquiring about the Stockingford properties. Once again, there are several schools, local amenities and people often like to live there for the convenience of being close to family/friends or they may have grown up there and are looking to move out but want to stay in the same area. Stockingford will also soon have it’s own disused train station revamped and allow residents of Stockingford and galley common to access links to Birmingham and potentially further afield for employment.
The more affluent areas (Weddington & Whitestone)- These are also popular for families with a higher income but can some times take longer to rent out.
The question to ask is not what area is best but, what type of property is best. From experience, the 2-3 bedroom terraced properties (annual average yield of 6-7% at the minute) will rent all day long and the 2-3 bedroom semi detached (average of 4-5% annual yield at the minute) with a drive way and garage are also popular (in all areas) but, it’s when you start getting to the 4-5 bedroom properties that things start to slow down a bit. Anyone who can afford to rent a 4-5 bedroom house can afford to pay a mortgage on one so, it is often the case that these are more difficult to rent out. It’s not impossible but it does take that little bit longer and you find that the tenants don’t stay long (maybe they’re having renovations done on their own property, they have sold their house but not found anywhere to move to, they are here on a 12 month contract for work etc).
Not a lot of investors would start racking up the 4-5 bedroom detached properties, which I appreciate but, it’s worth knowing.
If you have any questions about specifice areas of Nuneaton and what the rental yield will be, please get in touch and have a chat. We’re always happy to help.
I’m sure you’re all aware how difficult things are becoming with rental properties (thanks to COVID-19). We’re now having to give tenants 6 months notice and can’t accelerate evictions until they are in 6 months rent arrears!! Like it wasn’t bad enough before when tenants were in arrears!
So, with this in mind, I thought it would be the perfect time to encourage you all to look into rent protection, which can be added onto your building or landlords insurance from around £5+/month.
It’s worth every penny if you ask me. Especially with what’s happening at the minute. Our lives are changing on a weekly basis and many people are sadly loosing their jobs, which will inevitably impact the landlords who are renting out their investment properties.
The rent protection that you get may even cover legal expenses and eviction costs so please, take some time and get a quote for this to help protect you and your investment income.
I know I often have an air of sarcasm in my blog posts but I feel it I have to say to everyone out there….Be Kind! It’s such a rubbish time at the minute, for all of us so, let’s all do our bit and be the best people we can be.
For more life coaching and motivational talks, please get in touch ;-)….there’s the sarcasm again!
If you need contacts for quotes on insurance, please let us know and we’re happy to recommend.