Britten Way’s Property Market Outperforms Mead End Way By Nearly 12%
Last week, I met a couple from Denmead who are looking to potentially investing in property for Buy to Let. One of the most important considerations you will make before investing is the balance between annual return/yield and the annual value increase/capital growth. Denmead is considered to be a village attached to Waterlooville, giving all Denmead residents a Waterlooville postcode. The average three bedroom semi-detached house on Mead End Road sells at around £350,000 and rents are roughly £1300 per calendar month.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Britten Way, off Shaftesbury Avenue, have outperformed those on Mead End Road. This is because a three bedroom semi-detached house on Bitten Way can be bought for around £250,000 and the achievable rents can be around £1050 per calendar month.
The yield which could be achieved from property on Britten Way is around 5% per year. When we compare this to the possible 4.4% on Mead End Road, it is nearly 12% higher on Britten Way. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value increase of a three bedroom semi-detached house on Britten Way in 13 years is 12%. A three bedroom semi-detached house on Mead End Road was £230,000, meaning the value has increased by an impressive 34% in the same 13 years.
If you would like more information on investing in Waterlooville’s property market, please call me.