Following my article a few weeks ago, a landlord who had never done business with us before visited our office. He wanted to talk to us about houses in the Barrowby Gate area, and in particular whether four bed houses made good Buy to Let investments.
I was able to tell him four streets in the Barrowby Gate area were in the top thirty most expensive streets in Grantham; these included Exeter Close, Balmoral Drive, Hadleigh Close and Berkeley Drive. Whilst properties on these streets maintained their values during the recent recession, this does not necessarily make them good Buy to Let investments, even though it is great for the current owners. With rental yields/returns of around 3% to 3.5% per year, there are much better investment properties in Grantham, which are likely to achieve yields/returns of nearer 6% to 8% per year.
Whilst we can find tenants for four bedroom properties, we discovered the demand isn’t as high when compared to demand for properties with fewer bedrooms. After some discussion, we decided that buying two semi-detached houses in the Barrowby Gate area, one three bed and one two bed, was a much better investment for the landlord…
