Talking to one of our new landlords the other day, I was intrigued to discover the yield on her property.
Now renting out for close to £900, this property is achieving in excess of 7% yield on the initial investment. A great story and one which most Buy To Let Landlords would love to be part of.
Compare that to one of the more sought-after roads in Staines, say Sykes Drive, where a 4 Bedroomed house rents out for say £1495. On today’s prices that’s a yield of around 3.7%. Or perhaps a closer comparison, The Grange apartments in Gresham Road, where a typical two bed flat would rent out for between £1100 and £1150, there you would see a yield of just over 5%.
But then of course rental income is not the only criteria, investment growth also has to be looked at - which is more important to you?
Sykes Drive Houses have achieved a growth of around 7% over the last year – values for 4 bed houses up around £27,000; The Grange has fared less well, with growth just under 4%, up around £11,000 over the last year. DutchBarn Close shows growth of around 6.5%, values of 1 bed flats up around £8,000 over the last year.
Food for thought indeed!