We are going big in the Penicuik Property Blog today – big house with big returns.
I spotted this one and thought that it would be an interesting buy for somebody. Also, it allows me to explain a quirk in the Penicuik property market at the moment.
Firstly to the property. It is a large, 4 bedroomed, semi-detached house at 19 Cruachan Court which is between Tescos and the River Esk. The house has a good sized lounge, an expansive fully fitted dining kitchen, 4 spacious bedrooms and a fully tiled bathroom with electric shower over the bath. The decor is to a high standard – the property is in walk in condition.
The property is being marketed by our friends at Allan McDougall for offers in the region of £140,000. Further details of the property can be found here http://www.rightmove.co.uk/property-for-sale/property-53098025.html
Now to the quirk. The 4 bed housing benefit rate in Penicuik is £1,200 and so this property could be rented out to housing benefit tenants for £1,200. However, if you do not want housing benefit tenants, then I could see you getting only £1,000, possible £1,050 rent for the property. Either way, based on a price of £140,000, this equates to a healthy yield of between 8.6% and 10.3% so well worth considering. Which sort of tenant you take come down to your risk profile.
As I have mentioned before, a couple of things to remember about 4 + bed properties. Firstly the wear and tear on a property generally increases with the number of people living in a property so be prepared for extra wear and tear on a rental property of this size. Also, the number of people looking for 4 + bed properties is less than for, say, 1-2 bed properties so it may take a bit longer to rent out a property of this size.