Can this Tudhoe Moor property be one to add to your portfolio?

There always seems to be the better potential of higher rental returns on property at the lower end of the property market. To explore this, I'll take a look at a house that has come to market this week with an asking price of £52,000.

Tudhoe Moor, Spennymoor, County Durham, DL16

http://www.rightmove.co.uk/property-for-sale/property-57429539.html

It's is up for sale with Robinsons and can be found on Tudhoe Moor. As I've already said, it's available with an asking price of £52,000. The property is a 2 bedroom semi-detached house.

Aside from the standard comments, the estate agent states -

"Corner plot with extra large Gardens to rear and side. Patio area, Off street parking to the front 

Brick outhouse in rear garden"

It's interesting to know some detail about a property, especially if you are intending on letting it out in the future. A selling point for a sales estate agent will be a selling point for a landlord looking for tenants.

From the description and photographs it looks like it would be ready to rent out straight away, so the expenditure would only be linked to the purchase of the property. You may want to add a lick of paint and put a few plants in the garden but nothing of great cost by the look if it from here. Of course you'll want to go and check it out yourself before making an offer.

It's time for the financials, so let's take a look at what it will bring in rent. There looks to be quite a bit of competition for 2 bedroom properties to rent, so I think that you would get somewhere between £325 and £375 per month. This equates to a gross annual return of between 7.5% and 8.7% based in the asking price. This is a good solid rental return for any investor but beware the competition - there are a lot of 2 bedroom houses available for rent at the moment.