This week I have selected a 3 bed terraced house that was recently purchased in Houghton Regis and it looks like this could have been an ideal purchase for a Buy-to-Let landlord.
The average house price in Houghton Regis is £141,043 and for Barleyfield Way the average house price is £184,592 which makes it one of the more expensive areas of Houghton Regis with the LU5 postcode.
Barleyfield Way comprises 28 residential homes and no commercial property. The highest residential sale in Barleyfield Way was in July 2007 for £247,500, but I would like to focus on the most recent sale in April 2013 for a 3 bedroom terraced house which sold for £120,000 ! A similar property in the same row sold in 2004 for £128,000 and in May this year the property next door which had a very dated interior was on sale for offers over £140,000.
Did the buyer of this property get a bargain. It would most definitely seem so if they were going to live in it, but what about if they bought to invest as a Buy-to-Let property? Well the indicators are that a good 3 bedroom property in this area will let for around £800 per month and we have recently let a 3 bedroom property in and adjacent road within 2 days to the first viewer for the asking price of £795 per month.
If there was no work required on this property and we just took the bare figures of purchase price and rental value then a Landlord would be looking at a rental yield of 8%. Even with the costs of redecorating the property and maybe having to refresh the bathroom and kitchen with a modest replacement you would still be looking at a rental return of over 6% and you would have a desirable rental property with the potential for a considerable capital yield return as the housing market begins to pick up.
This just goes to show that with the right help and advice there are still plenty of bargains to be found.
Whether you are a landlord of ours or not, drop by our offices on Church St in Dunstable where you can talk to me, Daniel or my colleague Zara if you would like any advice…
