Which
semi detached house should I buy in Chelmsford?
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 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 current
average asking price (according to Rightmove) of a 3 bed semi in Chelmsford is
£319,957 today compared to £267,063 for a 2 bed semi. The 3 bed semi achieves
an average rental price of £1,224 per month compared to £969 per month for a
two bed semi.
That’s an
average yield of 4.3% for the 2 bed against 3.8% for the 3 bed. So surely, the
2 bed semi is the better bet? Well it does offer a better rate of return, but
this isn’t the whole story. We also have to consider the capital growth and how
they compare. In the last 10 years, since 2005, average property prices have risen
43% for 2 bed semis, but for 3 bed semi’s in Chelmsford, average prices have
risen by 55%
If you
would like more information, pop in to see us at our offices on Duke Street, Chelmsford.
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