Which makes the better investment - new developments or old? You may aspire to live in a new, modern apartment but is this where you get the best return on your investment?
Last year two bedroom flats on this estate in Blossom Lane, EN2, were selling for around £150,000. We rent a couple of flats here and while it’s not the prettiest estate (let’s be honest), they are great flats with good size rooms and just a few minutes’ walk from Gordon Hill Station.
With a current rental value of around £1,000pcm, these two bedroom flats are also a great investment, achieving a gross yield of 8%! That’s pretty good by anyone’s standards!
By contrast a brand new two bedroom flat in Colman Parade at Enfield Town Station will cost in excess of £265,000 on one of the upper floors. Now the views from these flats across Enfield and beyond are just spectacular and I can absolutely imagine sitting on the balcony of my penthouse flat sipping a glass of bubbly on a warm summers evening, but is it a good investment? Well the flat would definitely be desirable to tenants and it would also achieve a premium rent, potentially up to £1,400 pcm, which could achieve a yield of up to 6.3%. Of course, the higher the flat the more expensive the initial cost, so make sure the figures work.
For me, I know where I would prefer to live but I also know where I would rather invest!