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Erdington 3 Bed House with a 5-10% yield

14/09/2014

 

I have stumbled across this 3 bed house on Edwards Rd, Erdington up for sale at £165,000 with Dixons.

Why such big range in rental yield predications I hear you ask...

Well, with a property like this, you have OPTIONS.

Here's three of them:

1. Rent it as a family home for approximately £650 per calendar month, achieving a yield of 5%

2. Rent it as 2 self contained flats for £450 per calendar month, achieving a yield of 7%

3. Rent it as 4 separate rooms at £350 per room, per calendar month, achieving a yield of 10%

Choices, choice, choices...

Option 1 may be the easiest and most straight forward, but it won't get as many £'s in the bank, as fast. Although it may give you peace of mind, due to a more likely long term tenancy.

Option 2 will take some additional investment to renovate the property, although the yield is more attractive and the tenancies are also likely to be more long term

Option 3 involves more admin and management (which I can take care of by the way!), however the yield is fab! Only drawback is, the tenancies will be more short term, which means ongoing work to get them relet every 12 months on average.

There are more options available, using this property as an example - although I don't want to fry your brain at this stage, so we can explore those another time!

With any property investment you make, there are always risks involved. But with risks come options and fun in taking them! If you would like some complimentary advice on property investments, rental yields etc, please feel free to pop in and see me at my office on the Kingstanding Rd or email me direct at melissa@amitylettings.co.uk

Chow for now!

Melissa


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