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.