Which type of house should I buy in Penicuik to rent out to tenants – a 2 bedroomed one or a 3 bedroom one? One of our landlords asked me that question this week. The first question I asked them was what were 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 property in Penicuik is £158,200 today compared to £132,100 for a 2 bed one. 3 bed properties achieve an average rental price of £825 per month compared to £650 per month for two bedders.
That’s a yield of 6.3% for a 3 bed against 5.9% for the 2 bed. So surely, the 2 bed semi is the better bet? Well it does offer a better rate of return, but the 2 bed is slightly easier to rent out (less void periods) and will be easier to sell in the future.