Which terraced house should I buy in Levenshulme?
I was talking to an investor from London that had popped into my office over the weekend. He is looking to purchase a property to rent out in Levenshulme but he wasn’t sure if he should buy a two-bedroom terrace or a three-bedroom terrace. The first question I asked him was what was he looking for in his investment - capital growth 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 in Levenshulme is £136034 today compared to £114841 for a 2 bed terraced. The three bed terraced achieves an average rental price of £733 per month compared to £634 per month for a two bed terraced.
That’s a yield of 6.6% for the 2 bed against 6.4% for the 3 bed. There isn’t really a huge amount of difference in the yield, but you would say a two bed is better bet? Well it does offer a better rate of return, but the three bed terraced is slightly easier to rent out (less void periods) and would probably be easier to sell in the future.
If you would like more information, then feel free to pop into the office for a chat and a coffee.