3 bedroom terraced house delivering over 5.5% yeild in Spring Road, Bournemouth

I have come across a great example of an already modernised terraced house ready for the rental market. Over the last few years the property market has been glamourised by investors who buy cheap, add value, and sell with healthy profits. Done properly, it is certinly a great business model. However for investors who have limited building knowledge, this can be quite daunting. Is it possible to get strong yields without having to add value through property works?

This 3 bedroom terraced house in Spring Road, Bournemouth has been put on the market for £189,950 by the agent House & Son. It has already been modernised and is almost ready to be put straight up onto the rental market. It is a great example of a property priced reasonable that can still provide great rental yields for someone who doesn't want to have to do any major works on a house.

House prices increase by over 300% in Bournemouth over the last 20 years

It’s no secret that London and the South in particular have seen some very significant house price increases, both historically and at the present time. But just how much exactly has this been in Bournemouth, and what could we expect to see in the future?

Now I have to admit, I don’t have a crystal ball which tells me the future, nor am I very good at reading the stars – especially with all of these clouds floating around the sky at the moment. Even if I could, I still wouldn't be able to tell you exactly what is going to happen to the property market in the future, no one could. Having said that, there are ways to predict what is likely to happen using previous data trends and having a look at what is happening in the economy on both a local scale, and across the world. By giving you this information, it will put you in a stronger position for making more informed decisions. House prices will always fluctuate in the short term, but it’s what happens over the long term that is important to us if you are holding property.

Buy To Let investment in Bournemouth: Flat or a House?

It’s such a great discussion, because every investor I know has a strong opinion on the matter. On one side you have the ‘never buy a flat the service charges take all the profit from you and the flat never increases in value’. Then the other side usually pitches in with, ‘you will always get a higher yield on flats, they are cheaper, more available and the freeholder does all the major works to the building’. What works in one area may not work in another, so I will only give you my knowledge and experience which is on the Bournemouth property market.

High Yielding Detached House in Charminster, Bournemouth

This is a great example of making small changes to a house to turn it into a high-yielding Buy To Let property. It is a 3 bedroom detached house, converted into 1; 1 bed ground floor flat and 1; 2 bed first floor flat. On offer for £279,950 by Roberts, this property yields over 5.2%

It's not your usual 3 bedroom detached house. Converted into 2 separate flats with a small communal entrance area, this conversion really has maximised the rental potential of this property. Through this arrangement, the flats are of course freehold, avoiding the usual high charges associated with leasehold flats. It's worth mentioning that obtaining a mortgage may be slightly more difficult due to the arrangement of the property, it will be well worth speaking to a specialist mortgage broker for advice.

6.28% Yield Possible in Springbourne, Bournemouth

This is a great example of an investment property in Bournemouth, generating 6.28% yield. It is a 3 bedroom terraced house in Springbourne, which is just on the edge of central Bournemouth. Offered on the market by Chiswell & Co at £210,000 with a tenant in-situ paying £1,100pcm rent.

Oh no... tenant in-situ! I've heard it so many times before, tenant in-situ is too much effort. Wrong! It really can be a completely stress free process with the right approach, and what a great benefit of not having to find a tenant straight away, and no void period to worry about!

Bournemouth see’s greater house price increases than London?

It seems everywhere I go, all I hear about is how London is outperforming every town in the UK in terms of house price inflation. Yes, it’s true that key areas of London have seen seemingly large increases in property values, but could Bournemouth be experiencing something even greater?

I was actually talking to one of my landlords last week about this very thing. There’s a lot of doom and gloom in the papers for landlords; tax changes, stamp duty increases, wear and tear allowance disappearing etc etc... It led us on to the discussion of what is going to be the incentive for Buy To Let (BTL) Landlords in the next 5-10 years. Rental yield will always be important. It is after all what pays the mortgage and rental costs. But Capital Gain is something which can really impact an investment decision. But does that mean we all need to go and invest in London now?