Friday, 12 December 2014

6.26% yield - Student Let - Canterbury

As mentioned before, investment landlords often call in to see me to discuss potential investment properties. In most cases, the topic of student properties is discussed, due to the lure of the yield, which in the main is always higher than a professional let. Yes, the 'wear & tear' can be higher, but if handled well the return on investment will in most cases be higher.
 
My advice to any investment Landlord when it comes to student lets is quite simple, i.e. location, location, location. Yes, there are some tempting offers for student houses, which the lovely agent will tell you will let 10 times over every year, with a huge demand, 'streets are paved with gold' blah blah blah....Let me just say, it's a 'load of old tosh'. It's all about the location!
 
Therefore, the following property which I'm going to tell you about looks of interest. It's in St Peters Place and is on the market for £230K. The agent has indicated that it's achieving an annual of rent of £13,200 per annum, which would indicate a monthly rent £1200 per month, based upon an 11 months rental period which is fairly typical for a student property in the Canterbury area. This would give you a yield of 5.74%, based upon the 11 months or 6.26% based upon a 12 month let.
 
From the photographs it looks fairly decent, without too much to do, plus it comes with tenants 'till next June. This could have some implications, but a good agent can guide you through this.
 
Check it out at http://www.rightmove.co.uk/property-for-sale/property-49526003.html and give the agent a call.
 



Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 or call in and see me at 23 Watling Street in Canterbury.