Last week, a couple from the West Drayton area 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 valu...
Last week, a couple from the West Drayton area 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
Frays Avenue is one of West Drayton’s premier roads. It is one of the most sought after places to live in West Drayton, close to the Frays river and within walking distance of High Street and the station. Frays Avenue was home of choice for Captain Hubert Beaumont MP in the 1930’s. A three bedroom detached bungalow was recently on the market for £429,950 and the rent would be approx. £1,600, subject to condition.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Whitethorn Avenue off Horton Road, and still very close to station sell for around £290,000. In good condition they will let for £1300pcm. Whitethorn Avenue’s most famous resident was Ronnie Wood of the Rolling Stones who grew up on the road.
Yield Vs Capital Growth
The yield which could be achieved from property on Whitethorn Avenue is around 5.4% per year. When we compare this to the possible 4.5% on Frays Avenue, it is nearly 20% higher on Whitethorn Avenue. However, we need to remember yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bedroom semi-detached house on Whitethorn Avenue in 2001 was £130,000, which has since risen by 123% in the last 13 years. A three bedroom detached house on Frays Avenue in 2001 was £230,000 and the average value has increased by an impressive 172% in the same 12 years.
If you would like more information on investing in West Drayton property market, please call me or visit our office.