I was talking
to one of my landlords from Roslin the other week about the buy to let property
market in Penicuik, when the subject of flats (properties not shoes – see
picture!), and in particular whether they would make a good investment, came up.
He said that he
was not keen on flats because he had heard people lose money on them in the
past and, anyway, she wouldn’t want to climb stairs to a flat or suffer getting
no peace in a flat as a result of noisy neighbours. This is a reaction I have heard a few times
so I thought that I would look into the buy to let flat market in Penicuik a
bit further.
First of all,
let’s take the personal stuff. As with
all buy to let investments, it’s about the returns you can make on the property
rather than whether you would want to live in a property. A flat wouldn’t be my first choice to live now
but I was very happy living in flats when I was younger and, anyway, I am no
longer renting.
Secondly,
let’s have a look at the financial stuff.
There is a
strong argument that buying a flat these days is not an issue as they are
sensibly priced, the error people made in the past was buying them at the start
of this century for more than the price of a house.
If you are a
landlord with a limited budget, you can still find a decent property to let in
Penicuik. Typically, a reasonably priced one bedroomed flat can be bought for
around £85,000 in Penicuik – the average rent for this sort of property is
likely to be around £500 - £525 per month so that’s a yield of over 7%. A similar two bedroomed flat in Penicuik can
be bought for around £95,000 and will also give you a yield of over 7% based on
the average rent for these properties of around £600 - £625. In either case, £85-95,000 is not that much
for a buy to let property – assuming a 75% mortgage, that’s only £21,000 to
£24,000 capital down to get a property.
We hope you
find our posts useful. 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
office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).
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