Which semi detached house should I buy in Grantham?
One of our landlords asked if they should buy a 3 or 2 bed semi detached property to rent out to tenants. The first question I asked them was what was are they looking for from the investment – capital growth in the property or a great yield?
Answering this question will help you figure out which properties you should buy…
The average asking price of a 3 bed semi in Grantham is £127,500 today compared to £105,000 for a 2 bed semi. The 3 bed semi achieves an average rental price of £585 per month compared to £525 per month for a two bed semi.
That’s a yield of 6% for the 2 bed against 5.5% for the 3 bed. So surely, the 2 bed semi is the better bet? Well it does offer a better rate of return, but the 3 bed semi is slightly easier to rent out (less void periods) and will be easier to sell in the future.
If you would like more information pop in to see us at our offices on St Peters Hill, Grantham.
