flat or house?

harrit123

hello all,
I have enought money for a deposit for a buy to let mortgage. I have seen a 2 bed flat for 73k or a three bed terrace for 83k. The houde needs work but the flat is good to go. I will get more rental from the house but may need more maintance-whereas the flat will be covered.
any advice on this quandry would be much appriciated.

thanks in advance

olias

Research, research and research!

What would the yield be on the flat?
What would the yield be on the house?
What rents better in your area?
What is the areas demographic?
Historically what provides the better capital growth in your area?
Which area is more up and coming?
etc etc etc.

TBH, if you are looking at questions as black and white as what is better a house or a flat, then you appear to be entering into BTL with a very naive outlook. This is a business and investment undertaking and the only thing that matters is research and figures. These are what you should be concentrating on.

Olias

Fire_Fox

You will usually have to pay a service charge on a flat, do you know how much this is at present? If this is a new build it is not uncommon for the service charges to double in the first few years, how would that affect the yield? The buildings insurance and service charge will only cover repairs and maintenance to the communal areas and exterior of the property, not the inside of the flat and often not the windows.

harrit123

Many thanks for your replies.
I am not as green as i appear, as i own 2 properties in france that i rent out.I will continue to ponder as the figures add up about the same for both, perhaps the house will grow more in capital growth.