Last week, a couple from Arnothill came in to the office
to discuss potentially investing in property for Buy to Let. One of the most
important things you will consider before investing is the balance between
annual return/yield and the annual value increase/capital growth.
Queens Drive,
just along from Arnothill, is one of Falkirk’s premier roads to live on. It is
one of the most sought after places to live near the centre of Falkirk. The
average house sells at around £210,000 and rents are roughly £720 per calendar
month.
With this in mind, it was a surprise to find that houses
on Woodburn Road, which is just across the main road from the Forth Valley
College in Falkirk, have outperformed those on Queens Drive. This is because a
house in Woodburn can be bought for around £75,000 and the achievable rents can
be around £515 per calendar month.
The yield which could be achieved from property on Woodburn
Road is around 8.2% per year. When we compare this to the possible 4.1% on Queens
Drive, it is nearly 51% higher in Woodburn Road.
However, we must remember that yield is not the sole
consideration when investing in Buy to Let properties. The average value of a
house in Woodburn Road in 2005 was £66,636, which has since risen by 12.5% in
the last 12 years. A house on Queens Drive in 2005 was £145,750, meaning the
value has increased by 47.5% in the same 12 years.
Having this detail of information at our
finger tips, allows us to spot trends in the local market, which then enables
us to give the very best advice to our clients. We don't charge for that
advice. If you want some advice, come and see me in our offices (6 Vicar
Street, Falkirk), call me on 01324 469840 or email me on news@thekeyplace.co.uk.
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