Berewood or Tempest - Which Gives The Best Investment
A landlord approached me for advice, asking whether he should buy a two bedroomed semi-detached house on the highly sought after Tempest estate or within the newer Berewood estate.
We did some research and found that a nice two bedroom semi-detached house on Crystal Way, a cul-de-sac off Tempest Avenue has recently sold for in the region of £240,000. We worked out the possible rent for this is £900 per month, which could achieve an annual yield of 4.5%. The properties in this area are popular with families due to the great locations of several schools and tend to have a great demand with investors.
A similar new build two bedroom semi-detached house on the new Berewood development, off Kentidge Way, approximately two miles away, has a value of approximately £295,000. The possible rent for this property is slightly higher, at £1050 per month. We found that although the rent can be higher, the annual yield was similar at 4.3%.
This shows that while a property can achieve a higher rents, it does not necessarily mean a higher return. Lots of careful research is required to find the best investment for your circumstances.
If you would like any advice when looking at possible buy to let properties, please call us and we are more than happy to give our honest opinion.