It became really interesting when we compared his area of Sandown Park against the neighbouring Sherwood Estate, where he was brought up in the 1950’s. The extended 4 bed detached houses sell for anywhere between £550,000 and £1.5M, and rent for anywhere between £1500 to £3000 per month. Looking at the recent sales and rentals on Sandown Park, a landlord could achieve a yield of up to 3.2% per year, which isn’t bad until you consider those ex-local authority 3 bed semis in the neighbouring Sherwood estate, which sell for around £200,000 and let, depending upon condition for around £950 per month, achieve a yield of 5.7% per year, which is a 78% proportionally higher yield.
However, like I said a few weeks ago, yields are not everything in property investment. Another is how the value of the property goes up over time. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term. The average value of a 3 bed semi on Sherwood estate in 1999 was £98,875, meaning values have risen by 102%. Whilst in Sandown Park property values have risen by 133% since 1999.
Now I know there aren’t
many landlords that would buy a large 4 bed house in Sandown Park to rent out.
It’s just that looking at the Royal Tunbridge Wells property market in more depth enables me to give you the best advice and opinion to help
you find the best investment property for you. It is in our interest that you
buy a property which will rent well, and for long periods of time. If you would
like any advice on choosing properties, please come and see me at our office near
the train station in Royal Tunbridge Wells
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