Last week, a couple from Southsea came to discuss potentially investing in property for Buy to Let.
Last week, a couple from Southsea came to discuss potentially investing in property for Buy to Let. One of the most important considerations you will make before investing is the balance between annual return/yield and the annual value increase/capital growth.
Lidiard Gardens is on of the most sought after places to live on the East side of Southsea. The average three bedroom terraced house sells at around £200,000 and rents are roughly £750 per calendar month.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Telephone Road, off Fawcett Road in Southsea, have outperformed those on Lidiard Gardens. This is because a three bedroom terraced house on Telephone Road can be bought for around £170,000 and the achievable rents can be around £825 per calendar month.
The yield which could be achieved from property on Telephone Road is around 5.8% per year. When we compare this to the possible 4.5% on Lidiard Gardens, it is nearly 28% higher on Telephone Road. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties.
If you would like more information on investing in Southsea’s property market, please call me on 023 9273 5863 or email me at Samantha.email@example.com.