I was talking to somebody last week from the Riverfield Drive area, who was considering becoming a landlord for the first time.
He visited our office to ask us whether buying a property on Honeysuckle Way or Heather Gardens would make a better Buy to Let investment, and which would offer a better return/yield. He knew the area well, as he lived around there over ten years ago. I confirmed that the properties on both streets let and sell well, but I wanted to do a bit more research to help with his choice…
Over the last three years, the average price for a property on Heather Gardens has been £122,670; while on Honeysuckle Way it was over 10 % more, at £135,142.
To better understand the investment opportunities available, we took a look at the rents of the same three year period.
The average rents achieved for the area as they are so close was the same £744 pcm, giving a yield/return of 7.2% for Heather Gardens and a return of 6.6% for Honeysuckle Way.
We found both streets to be as good as each other, but as you can see Heather Gardens seems the better bet in terms of yields/returns. However this may need further investigation.
As the information is built on averages and what it really comes down to the best available property to buy on the day.
If you are a landlord, whether you deal with us or not, feel free to visit into our office on Tavistock Street to ask our opinion on which property investment is best for you.