LETTING & ESTATE AGENT

Broomfield property market outperforms The Avenue’s by 36%.

Broomfield property market outperforms The Avenue’s by 36%.

I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money, knowing the return they would get investing in the Bank. They had previously lived in one of those lovely extended 1930’s semi detached houses in what is known locally as ‘The Avenues’ as you go up Broomfield Road. They were looking for advice as to what kind of property they should buy, but they particularly wanted it to be North of Chelmsford’s city centre. 

Their budget was in the £300,000 to £355,000 region, so I initially looked at semi detached houses in The Avenue’s. The average value of a three bed semi detached property in The Avenue’s area is £383,100 (although the price range is quite wide and they can go as low as the mid £300k’s bringing them just into our price range but as high £400k) with the four bed semis in The Avenue’s area worth, at today’s prices, around £463,800.  The three beds rent on average for £1,200 per month and the four beds for £1,400 per month, giving us an average yield of 3.67%. I then considered the Broomfield area on the left hand side of Broomfield Road. Semi detached houses are worth on average £237,600 here and rent for  around £1,000 per month, giving a much better yield of 5%, which is proportionally just over a third (or 36% to be precise) more than The Avenue’s. 

However, to judge a rental investment, you must consider the capital growth as well as the yield. Since around the Millennium, the average Broomfield semi has risen by 107%, whilst The Avenue’s values, have risen by 153%. Ultimately, we found both streets to be a good investment depending on your own situation, but as you can see, Broomfield does offer better yields, but at the expense of better capital growth that The Avenue’s offer.  

If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices on Duke Street for a chat or email me direct on stephen.frost@martinco.com