I spoke to a couple recently who, unhappy with the interest rates they were achieving on their savings, wanted some advice about buy to let and what sort of return they could expect on such an investment.
They had found a 3 bedroom property for sale in Southsea but wanted to know what rental yield they might achieve if they let it. We discussed the possible rental income and worked out that they could achieve between 5.1% and 5.8% return, depending on the deal they managed to strike on the purchase. Once they were sure that, even having to pay a higher price and get a lower rent gave them an excellent return, they decided to make an offer. They actually got a very good deal (because they were cash buyers). Since then, rental demand has increased for 3 bedroom houses and, as a result, we hope to achieve more than 6.5% return for them which will allow them a comfortable margin for those essentials like insurance and repairs etc.
It goes to show that Southsea has some great opportunities for buy to let investment but it is best to talk it over with professionals before going ahead. We speak to many potential landlords every week and we are very happy to offer advice – there is no charge!