There's a little artistic license by the estate agent with this property, as it is actually a 3 bed house not a 4 bed.
It's been on the market since June and has recently been reduced by £10,000 to £239,950.
The downstairs dining room has become a 4th bedroom and as a result, the property has been let to students at a whopping £1,400pcm.
On the face of it, like with most student lets, this means it offers an impressive rental return: 7% in this case. However, most student lets are only occupied for 10 or 11 months of the year, bringing the yield down to 5.8%-6.4%.
You may still consider this as good, but when you factor in the additional wear and tear on the property, the need to furnish it, additional legislation and the annual churn of tenants, I would far rather rent to a single family than students, benefiting from a much quieter life whilst waiting for the future capital appreciation to boost a reasonable, if not sensational, rental return. To take on a student let I'd want the rental return to be much closer to double digits to make up for the extra work involved.
The bricks and mortar value of the property is probably closer to £220,000, so you're paying a premium from the outset due to the inflated rental figure. If bought closer to that figure and rented to a family (for 12 months of the year) at £895pcm, it could have generated only a slightly lower 4.9% yield.
It's on with Zone and full details can be found on Rightmove via the following link:
www.rightmove.co.uk/property-for-sale/property-31119393.html
It's been on the market since June and has recently been reduced by £10,000 to £239,950.
The downstairs dining room has become a 4th bedroom and as a result, the property has been let to students at a whopping £1,400pcm.
On the face of it, like with most student lets, this means it offers an impressive rental return: 7% in this case. However, most student lets are only occupied for 10 or 11 months of the year, bringing the yield down to 5.8%-6.4%.
You may still consider this as good, but when you factor in the additional wear and tear on the property, the need to furnish it, additional legislation and the annual churn of tenants, I would far rather rent to a single family than students, benefiting from a much quieter life whilst waiting for the future capital appreciation to boost a reasonable, if not sensational, rental return. To take on a student let I'd want the rental return to be much closer to double digits to make up for the extra work involved.
The bricks and mortar value of the property is probably closer to £220,000, so you're paying a premium from the outset due to the inflated rental figure. If bought closer to that figure and rented to a family (for 12 months of the year) at £895pcm, it could have generated only a slightly lower 4.9% yield.
It's on with Zone and full details can be found on Rightmove via the following link:
www.rightmove.co.uk/property-for-sale/property-31119393.html
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