Thursday, 30 July 2015

Which type of house should I buy in Penicuik?


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.

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

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