2 Bed Semi or 3 Bed semi - Which Semi-Detached House Should I Buy In Waterlooville?
Which semi detached house should I buy in Waterlooville? 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, 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 3 bed semi in Waterlooville is £310,000 today compared to £306,000 for a 2 bed semi. The 3 bed semi achieves an average rental price of £1180 per month compared to £995 per month for a two bed semi.
That’s a yield of 4.6% for the 2 bed against 3.9% for the 3 bed. So surely, the 2 bed semi is the better bet?
Well it does offer a better rate of return, but the 3 bed semi is slightly easier to rent out (meaning less void periods) as well as longer tenancies as a family will out grow a 2 bed fairly fast and will be easier to sell in the future.
It really comes down to getting the higher ‘Gross’ yield and taking a slightly higher risk on voids
If you would like more information – click here to drop me line.