All landlords are
different in the way they play the property game. Some landlords prefer to
accept a modest yield/return on their investment for an increased certainty of
finding a quality tenant. Other landlords are interested in high returns, with
a greater risk with regards to the quality of the tenant. Before you start
playing, it is a good idea to have a game plan.
For a low risk
investment, you could buy property in the areas of Morley which are perceived
as being more desirable, such as East Park Street and Pawson Street, where you
should be able to achieve an annual yield of around 4-6%. If you don’t mind a
slightly higher risk of void periods or a more varied quality of tenant, you
are likely to be rewarded with a higher annual yield of 6-7%.
This level of risk can
be typically taken with semi-detached houses around Morley in areas like
Corporation Street. If you are after annual yields of 8% and over, you could
take more of a risk with properties in areas like Peel Street and Middleton
Road which may attract tenants of a lower quality but can generally be bought
at a lower cost and with rents remaining stable in our area they can offer
these yields.
Investing in
property is a balancing act, with several factors to consider, and just like
the board game a strategy is an important part of the process.
If you would like any advice on
choosing properties, call me on 0113 436 4360 for a chat.
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