When it comes to buy-to-let (BTL) deals in Walsall, there hasn’t been much to sing and dance about in recent times. But if you look underneath the covers…there are always hidden gems to be found. Some of my Blog reading friends may know that I have been quietly plugging away in the background looking at deals and helping clients connect the dots to help make those all important life changing decisions. Like people come in all shapes and sizes so does their area of knowledge/ expertise. In recent times I have had my Walsall Property Sourcing Clients ask me a similar question which, I thought I would answer here by providing an insight into some of the reasons why I view Walsall BTL investments the way I do…
…so without further ado…!! Above pictures are of two seemingly investable properties for a Walsall Landlord to consider. However, when you delve a little deeper and past the numbers, what do you actually see…?
Property 1 – The property on Pargeter Street is in the Birchills area of Walsall. It is a 2 Bed Terrace built circa 1900. The current asking price is for offers in excess of £90k and will rent for approximately £575.00 pcm presently a very healthy, enticing rental of yield of 7.6%. Currently on offer with L & S Prestige Estates Ltd (01902 606595). Click HERE for the full property details.
Property 2 – The property on Yorkshire Grove is to the adjoining sub-area of Walsall called Leamore. A relatively new development which went up around 4-5 years ago. It is a 2 Bed Semi and still has the NHBC warranty until it’s 10th birthday. The current asking price is for offers in excess of £135k and will rent for approximately £675 pcm presenting a healthy yield of 6.0%. Currently on offer with Lovett & Co Estate Agents (01543 889410). Click HERE for the full property details.
Now here’s the kicker…I would recommend purchasing the more expensive property out of the two which also, on face value, provides the lesser yield!! There are many reasons/ factors two of which I will share with you here and this is before I have even walked out the door:
Who is your target tenant market?
I have always said this and will re-iterate that the number one priority on your list should be this question. Before you set out to seek a property for BTL purposes you need to understand your target market then cater for them with what they want…its that simple really! Do you want to target the service accommodation market, student market/ single people (HMO market), social housing market or the professional working single/ couple/ family? Which property above do you think lends to appeal to which market?
What is the tenant demand?
Now, this is just as important as above. Imagine you’ve purchased the ideal property for your tenant target market only to find no demand for it when advertised. Or the demand is such that when someone does eventually come along you’re practically begging for them to take it. A property’s net yield can be wiped out if it was left empty for one month of the year let alone several months. Ask yourself this question, if you had a choice to rent either of the two Walsall properties above, which one would you choose?
If you are thinking of getting into the property rental market and don’t know where to start, speak to me for impartial advice and guidance to get the best return on your investment.
Don’t forget to visit the links below to view back dated deals and Walsall Property Market News.