LETTING & ESTATE AGENT

Falmouth Apartments

Falmouth Apartments

Currently in Falmouth the average rent for a one bedroom property is £578 per month with an average value of £151,820. This means an approximate return / yield of 4.6% per year.

There are of course one bed properties on the market for rent at higher prices than some two bedrooms. In fact if you add sea views they can attract considerably more than say a three bed terraced house, but yields for one bedroom flats on average remain around 4.6%.

So what of the two beds? Well again prices vary considerably but the average value is £233,197, and rents too vary massively depending mainly on exact location but the average rent (based on figures taken in the last 12 months) is £723. This gives a yield of 3.7% per year.

So you think that the short answer to the question then is one bedroom apartments give a higher yield so they should be the way to go. Whilst two bedrooms are more expensive they are often easier to let, reducing void periods (time between tenants) is vitally important when looking at return. Do they sell better? 56% of two bedroom properties on the market in Falmouth at this moment in time are sold subject to contract compared to 36% of one bedroom properties.

As I explained to the landlord it really comes down to timescales, it can be argued that if they were looking long term for example as a pension investment the higher yield from the one bedroom properties is probably worth considering. If on the other hand they were unsure of their future plans and may sell or diversify their portfolio in the relatively short term the ease of sale with a two bedroom property would probably be