Which terraced house should I buy in DA7 (Bexleyheath)? One of our landlords asked if they should buy a 3 or 2 bed terraced 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 average asking price of a 3 bed terraced house in Bexleyheath is £369,642 today compared to £304,444 for a 2 bed. The 3 bed achieves an average rental price of £1,362.50 per month compared to £1,100.00 per month for a two bed.
That’s a yield of 4.33% for the 2 bed against 4.42% for the 3 bed. So surely, the 3 bed terraced is the better bet?
Well it does offer a better rate of return, the 3 bed terraced is also slightly easier to rent out (meaning less void periods) and will be easier to sell in the future.
It really comes down to getting the higher ‘Gross’ yield, whilst considering the potential voids.
If you would like more information – drop me line.
PS - Keep an eye out for the next investors advice blog, in which we will be looking at flats and whether they still present a good investment opportunity in the DA7 area.