Tuesday, 7 July 2015

8.3% yield on large family home in Penicuik

This is one is an interesting buy to let prospect although, given it’s size, a bit more of a speciality one.

This property is a semi detached, 4 bedroom house in Cuiken Terrace in Penicuik, not far from Cuiken Primary school.  It is well presented although it looks like the fundamentals of the kitchen and bathroom have had less attention than the eye catching decor, carpets and harling.  It has been extended on the ground floor, hence the 4th bedroom.

The property is being marketed by Allan McDougall for around £145,000.  Rents for 4 beds are a wee bit tricky as the housing benefit rate is £1,200/month whereas the private rate is around £1,000/month.  Sticking with £1,000/month gives you a yield of 8.3%; a rent of £1,200/month give a very healthy yield of 10%.

The property went on the market on the 12th of June.  I see that a 3 bedroom semi in the same street that was put on the market on the 8th of June at offers over £145,000 (ie less accommodation, similar price) is under offer so do not hang around if this property interests you.

Before I sign off I need to say a couple of things about 4 bedroom properties.  They can take a bit longer to let given that there is less demand for this size of properties – you need to have a fairly big family to need 4 bedrooms!  Also, the greater number of people in a property can increase the wear and tear.  This is why I mentioned at this start of this piece that this is a bit more of a speciality buy.

If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

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