How does High Barnes compare to Barnes for Buy to Let investment? Analysis of Gross Yields & Potential for Capital Growth
I was speaking to an investment Landlord this week who was seeking my advice on the best areas to purchase his first property in Sunderland.
He’d identified High Barnes as an area for consideration and asked me whether there was a big difference between Barnes and High Barnes, given they’re right next to each other and both are likely to be popular with tenants, being close to Sunderland Royal Hospital.
Last year the average price of a 2 bed terrace in Barnes was £92,799 whilst the average sale price for a similar property in High Barnes was £104,468. Generally rents are a little higher in High Barnes, averaging £550pcm for a 2 bed terrace rather than £475pcm for a similar property in Barnes. This equates to a gross yield of 6.3% for High Barnes compared to 6.1% for Barnes.
Whilst the gross yields are quite similar, this is not the only consideration when Buying to Let and it would be worth also considering the potential for capital growth, which is likely to be much greater in High Barnes, the average price at the 2008 peak being £141,070 compared to £128,621 for Barnes.