Investment Spotlight
Welcome to the seventh edition of our monthly investment spotlight, where we pick three properties which are currently for sale with Mark Ewin, in and around Bury St Edmunds, which we believe would make a good buy-to-let purchase, Then, using our experience and expertise we give you a run down of the pros, cons and likely rental prospects of each.
Three Bedroom House on Banks Walk, Bury St Edmunds
This property is located on the popular Nowton Estate, which is very popular with local market renters, especially due to it’s close proximity with West Suffolk Hospital, meaning there is consistent rental demand. The property has been updated in some areas including a new central heating system installed in 2018, and a new kitchen installed in 2021. Some further work, particularly in the bathroom, to bring the rest of the property up to a high standard would be advisable before putting on the market to rent.
Hazells currently let and manage this property and the outgoing tenants currently pay £850 per calendar month. If the property was brought up to spec throughout then we believe that a higher rental figure of between £1000 and £1050 could be sought. Based on the asking price of £220,000 and allowing an additional £10,000 for improvements a healthy gross yield of between 5.22% and 5.74% could be achieved.
The EPC Rating is favourable too, with the new heating system helping the property achieve a “C” rating, avoiding any potential issues in future.
https://www.markewin.co.uk/properties-for-sale/property/11595556-banks-walk-bury-st-edmunds
Four Bedroom House on Marham Park, Bury St Edmunds
A completely different proposition, is this four bedroom new build house on Marham Park, which was built by David Wilson Homes. This would represent a straightforward investment, as the property appears to be in great condition and immediately ready for rental. Marham Park remains very popular both with local market renters and visiting USAF Members, and Hazells already let and manage a three bedroom townhouse on the same street.
Properties of this nature rent for between £1800 – £1900 per calendar month, which based on a purchase price of £450,000 would give a gross yield of between 4.8% and 5.07%.
The property has a desirable EPC rating of “B” and with the property being new build there should be lower property maintenance costs.
https://www.markewin.co.uk/properties-for-sale/property/11855187-tudor-road-bury-st-edmunds
Three Bedroom House on Welham Lane, Risby
Moving out of Bury St Edmunds into the surrounding villages, we have this three bedroom semi detached house in the village of Risby, offering excellent links to the A14 for onward travel. The property sits on a quiet country lane and demand for rentals in the area is high, owing to a lower supply of available rental properties in the village. The house sits on a large plot, with a big front and reasonable rear garden, and also benefits from field views to the rear. Internally it is in good condition and little would need to be done in order to prepare it for rental.
The property should rent easily at a rental price of between £1250 – £1350 per calendar month, and could well attract visiting forces from the USAF alongside local market renters. This would give a gross rental yield of between 5.36% and 5.79% making this a fairly attractive investment.
One note of caution is that the property has electric heating only, and although a new EPC is being commissioned the expired EPC (carried out in 2009) was rated “E”, we would expect a new EPC to be of a higher rating, but it is worth checking this out and weighing up the pro’s and con’s depending on the new rating.
https://www.markewin.co.uk/properties-for-sale/property/11883133-welham-lane-risby-bury-st-edmunds
If you would like further information on any of the properties above, or would like to arrange a viewing, please contact Mark Ewin Estate Agents on 01284 217 530
As always, if you would like specific advice on any aspect of lettings please do contact either Chris or Andrew on 01284 702 626
