1 Bed Flat Or 1 Bed Terraced - Which Should I Buy In Waterlooville?
Should I buy a house or flat in Waterlooville? One of our landlords asked if they should buy a 1 bed flat or house 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 average asking price of a 1 bed house in Waterlooville is £169,295 today compared to £139,748 for a 1 bed flat. The house achieves an average rental price of £697.44 per month compared to £617.06 per month for a flat.
That’s a yield of 4.8% for the house against 5.3% for the flat. So the flat is the better yield overall but is that still the case when you take into account the service charge and ground rent? As a rough guide, service charge and ground rent are normally roughly £1000 a year, this doesn’t work for all properties so please check upon an individual basis, following this calculation the yield of the flat drops to 4.6%.
With the yields being so close it really does come down to personal preference. With a house you could potential be more flexible and allow pets reaching a wider audience of tenants. The flat comes with the added bonus of the building insurance and external maintenance being covered by your service charge and ground rent.
If you would like more information please feel free to contact me.