Tuesday, 24 March 2015

Amazing yield property – 7.8% yield in Brixton SW9

It’s not often that larger properties are on the market with such good return. Historically larger properties have been slow to be snapped up because they were perceived as, well, outside the norm. Most people rented a 1 or 2bed flat. So as a consequence buy to let in the 90s and 00s meant that everyone bought a 2bed flat. The more equal the double bedrooms the more valuable. But currently 2beds represent about 40% of the lettings stock. As a consequence investors are finding yields spiralling downwards.

Larger properties have bucked this trend. With renters renting until their late 20s or even mid 30s the need for larger accommodation has risen over the past 2 decades. The price per bedroom is lower and generally this is what attracts the bigger groups. As they are always out, working or playing, the need for living space, large kitchens and so forth has decreased. Enter the savvy landlord with bigger properties. Higher demand, less voids and the price per bedroom to buy is cheaper – so higher yields. What’s not to like?

We estimate a rental price of £750pw-£800pw, which using the conservative figure would yield 7.8%!

Tenants will be queing up around the block to see this beauty with a roof terrace. Purchase in time for the summer rush. With graduate schemes and new jobseekers entering the London rental market August/September time this property is keenly priced for the savvy investor.




As always do get in touch for a helping hand with your new investment.

Jeroen Hoppe
Director

XanderMatthew

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