Which semi detached house should I buy in Chelmsford?
One of our landlords asked if they should buy a 3 or 2 bed semi detached property to rent out to tenants. The first question I asked them was, what are 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 current average asking price (according to Rightmove) of a 3 bed semi in Chelmsford is £319,957 today compared to £267,063 for a 2 bed semi. The 3 bed semi achieves an average rental price of £1,224 per month compared to £969 per month for a two bed semi.
That's an average yield of 4.3% for the 2 bed against 3.8% for the 3 bed. So surely, the 2 bed semi is the better bet? Well it does offer a better rate of return, but this isn't the whole story. We also have to consider the capital growth and how they compare. In the last 10 years, since 2005, average property prices have risen 43% for 2 bed semis, but for 3 bed semis in Chelmsford, average prices have risen by 55%
If you would like more information, pop in to see us at our offices on Duke Street, Chelmsford.