Which semi detached house should I buy in Guildford?

One of our landlords asked if they should buy a 2, 3 or 4 bed semi detached property to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a great yield? 

The area in which they purchase would also determine how much they should pay. For example, a reasonably priced 2 or 3 bed semi detached property can be located in and around Manor Road and Stoughton Road towards the Worplesdon Road. Larger 4 bed semi-detached properties, with an average asking price, are more likely to be situated in an area like Onslow Village, which is in a good primary school catchment area and is also close to town.

Answering these questions would help him to figure out which properties he should buy. The average asking price of a 2 bed semi in Guildford is £350,950 today compared to £399,950 for a 3 bed semi and £550,000 for a 4 bed semi detached property. The 2 bed semi achieves an average rental price of £1,295 per month compared to £1,625 per month for a 3 bed semi and £1,995 for a 4 bed semi.

That’s a gross yield of 4.4% for the 2 bed against 4.9% for the 3 bed and 4.4% for a 4 bed semi detached property. 

As I always remark, capital gains have been significant for Guildford property. This has certainly been the case between 1999 and 2015. For example, 2 bed semi-detached houses have risen by 280% over this time period and 4 bed semis have risen by 300% yet once again the winners are 3 bedroom semis as these have risen on average by 327%.

So surely, the 3 bed semi is the slightly better bet? Well they do offer a better rate of return and excellent capital gain plus they are in more plentiful supply than 2 or 4 bed semi detached properties. 

A typical style of semi-detached property found in Onslow Village

However the properties that tend to go through the letting process with more prospective tenants actually completing are 4 bed semi-detached houses, which suggests that they do tend to rent out quicker than others. Furthermore there is great potential to rent out a 4 bedroom house to sharers, in order to maximise the gross yield.

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk