Going back to August last year, I wrote a blog
article about what is more investable: a one bedroom flat or a two bedroom flat.
Now if I remember correctly, it was one of the first times I was spotted in
Warrington town centre whilst shopping. The gent recognised me from the
Warrington property blog and was looking to invest in the local property market.
His strategy was to invest in flats, but which is better… one or two bedrooms? CLICK HERE FOR A RECAP
OF THE 2015 ARTICLE
If investing in flats is your strategy you have to
remember that as much as they are in high demand, do not always expect a long
term tenant. From experience, one bedroom flats attract a single person working
in the town centre. Now, if that tenant meets someone, they may start to look
for something bigger… possibly a two bedroom flat. In time, they may even
consider starting a family. A two bedroom flat would be ideal for a couple with
one child. However, I notice,
eventually, a family that size tend to look at finding a two up two down with a
garden, something close to schools – planning for the future and somewhere to
get comfortable. Investing in flats is a
great strategy, providing you know all the pros and cons.
So
what is it you’re after: a high yield or capital growth?
Answering this question will help you figure out
which properties you should buy...
The average asking price
of a one bed flat in Warrington is £77,500 today, compared with £95,000 for a two
bed flat. The one bed achieves an average rental price of £450 per month,
compared with £595 per month for a two bed flat. That’s a yield of 6.9% for the
one bed against 7.5% for the two bed.
So surely, the two bed flat is the better bet?
Well, it does offer a better rate of return and the
two beds are much more desirable and easier to let out (therefore less void
period). I almost forgot to mention that two bedroom flats are also much easier
to sell in than one bedroom flats.
The numbers used in this article are taken from Rightmove
and I am working with averages. Deals can be found for one or two bedroom flats
in Warrington to achieve even larger yields. It’s about having that local
street knowledge and knowing when and where to buy. So what are the pros and
cons for investing in flats? Pop in… meet me and the team. Let’s have a chat.
As always, if you are an investor in the Warrington property market and
would like a second opinion on a property you have seen, then send the URL of
the properties you have seen online over to me. Or if you would like to pop in
and have a chat, then you can either email me on manoj@hamletwarrington.co.uk or
call on 01925 235 338. Our address is 6 Bankside,
Crosfield Street (opposite Iceland and Aldi – so plenty of parking
available). The kettle is always on and we will even pull out the posh
biscuits!
Don't forget to visit the links below to view back dated deals and
Warrington Property News.
Twitter, https://twitter.com/HHWarrington
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