Following my previous article, when we compared new build to old by looking at the potential rents for the 2 types of property and their yield, I had a further conversation with one of my landlords and this time we looked at capital growth. I did a little research and found some interesting results. We looked at a typical 3 bedroom house and found that in the Charity crescent area these were selling new at around £63000 in 1995/1996. In the same period we found that a 3 bed house in the Bengeworth area could have been purchased for around £50,000. In Charity Crescent the average 3 bed currently achieves in the order of £164000, showing a capital growth of around 160% over 18years. An average 3 bed house in the Bengeworth area could currently realise in the order of £165000 showing capital growth of around 230% over a similar period. Both types of property have seen good capital growth and it would appear that the older property would have fared better than the new build, but if the additional maintenance required on the former is high then this could significantly alter the numbers.
We don’t sell property but we can offer impartial advice to help you find the best investment property for you, so if you would like some free advice please call in to our office at 47 High St, or email firstname.lastname@example.org