Investing in Cambridge?

[Severine19]

I live in Cambridge and am thinking of buying property to let in or close to the city.

Would flat (leasehold,

£395k - 2 bed flat
www.rightmove.co.uk/property-for-sale/property-80206058.html
698 sq ft
Potential rental yield: 5.0%
Leasehold 999 years from 2014
Service charge £2400 pa; ground rent £300 pa; underground car park £50 pa

£450k - 3 bed semi
www.rightmove.co.uk/property-for-sale/property-76351058.html
926 sq feet
Potential rental yield: 3.2%

£500k - 3 bed semi
www.rightmove.co.uk/property-for-sale/property-80455271.html
1120 sq ft

Sorry pressed 'post' too soon.

Anyway, would you buy a leasehold flat (bearing in mind large number flats already been/being built close to the city train station), or a freehold 3-bed semi in Cherry Hinton which would have a lower rental yield?

Will it be worth buying a house vs a flat as a long term investment? Have rented out our house before, elsewhere in the country, but sold that one to fully buy our current house in Cambridge. This would be a first investment to let for us.

Thanks for any input.

I would prioritise higher income, however I am not keen on leasehold either. Could you find a cheaper area and a freehold three bed?

It's a bit eggs in one basket.

The house.

If the economy tanks then foreign students and professionals may not come to Cambridge in their current numbers, but some of the big housing projects may be paused and the pressure for family sized housing stock will remain.

I'm basing my decision from living in Cambridge my whole life and remembering which projects (like Northstowe) were put on hold in 2007. Someone with better financial acumen will be along in a minute

3.2 % minus fees, insurance and maintenance is not worth it.

The flat isn't really a 2 bed. You won't rent to two professionals with such a small second bedroom and only only one bathroom. Would be good for a couple only.

3.2% is not a good yield.

Why do you want to invest in Cambridge specifically?

You could get two two bed houses in a cheaper area, divide the risk for if one is not rented out.

www.rightmove.co.uk/property-for-sale/property-59814300.html