I was talking to a potential landlord who lives in a detached house on the Old Moulsham development. He wants to purchase his first Buy to Let property and has noticed our rental index and previous articles, so was interested in getting to know the industry a little bit more.
As he lives in Old Moulsham, he wanted to try and get something that was nearby, but also a fairly modern apartment so the maintenance would be minimal. He mentioned The Village, just off Writtle Road so I looked into it a bit further for him. These were my findings:
In the last year, 26 two bedroom apartments have been sold in The Village (Parkinson Drive, Rookes Crescent, Crompton Street, Evelyn Place), for an average price of £149,230. Two Bedroom apartments on this development have been renting on average for £760 pcm. This means that the annual yield could be around the 6% mark, which for the Chelmsford area, is a very good yield indeed.
Property values for 2 bedroom apartments in The Village, Chelmsford have risen on average by around 13% in the last 2 years, which is bang on the Chelmsford average. This is a good sign that things are moving in the right direction. This also means that The Village is good area for investment, because generally, where the capital growth is on par, or higher than the average, the yields are lower, this location seems to stack up on all accounts.
If you would like to talk to us about your potential investment criteria, please come into our office on Duke Street.