2 Bed Apartment or 1 Bed Apartment - Which Should I Buy In Waterlooville?
Which apartment should I buy in Waterlooville? One of our landlords asked if they should buy a 2 or 1 bed apartment 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 2 bed apartment in Waterlooville is £180,500 today compared to £138,000 for a 1 bed. The 2 bed apartment achieves an average rental price of £890 per month compared to £690 per month for a 1 bed.
That’s a yield of 6% for the 1 bed against 5.9% for the 2 bed. So surely, the 1 bed apartment is the better option?
Well it does offer a slightly better rate of return, but the 2 bed is slightly easier to rent out (meaning less void periods) and will be easier to sell in the future, so for 0.1% the 2 bedroom would make the better investment here.
It really comes down to getting the higher ‘Gross’ yield and taking a slightly higher risk on voids.
If you would like more information – drop me line