A landlord became ever more curious about Yeovil’s Buy to Let market after reading our articles about the town’s various residential areas, so decided to pop in and ask our advice on where he might be able to get a good bargain, particularly if he might be thinking of selling the property after only several years of renting it. With that in mind I had a look at some areas of Yeovil where home owners have been able to ‘flip’ their property for a great profit in recent years.
I found that an older three bedroom semi-detached property with a single garage on Cedar Grove, close to the centre of Yeovil, was bought for £133,500 in 2013. The same property sold for £168,000 in August this year, which is a rise of 26% in just one year. However, prices in the town during this same time period rose by 5.6%, so it should have sold for £141,000 if it kept up with the town’s average house price. Of course, looking at this realistically, it is highly likely that a good deal of refurbishment work went into this ‘flip’ to achieve the impressive price increase, and so this is a great example of how a property investor can make money quickly in Yeovil.
Looking a bit further back, an impressive three storey, five bedroom semi-detached period house on Sherborne Road, again close to Yeovil town centre, sold for £81,000 in the spring of 2001, and was sold again this year for £229,000. This is a rather impressive rise of 183%!
With rents for semi-detached houses of these property types (older with period features, large room sizes, garden) within walking distance of the town centre achieving anywhere between £650 and £850 per month for a 3 bed, and anything up to £1000 per month for a 5 bed, yields could be around 5% for a Landlord investor. I think in terms of a rental investment, there are better properties, such as smaller two or three bedroom semis in the more modern estates around Yeovil and Sherborne, but for owner occupation there are some bargains to be had.
Our passion lies firmly within the residential property market, so please feel free to talk to us at any point about the diversity within the property market of Yeovil, Sherborne and the surrounding area.