Eagle Avenue 3 Bedroom Property Outperforms Berewood
Last week, a couple from the Hambledon area came to discuss potentially investing in property for Buy to Let in Waterlooville. 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. The new Berewood estate started being built back in 2013 and is now one of Waterlooville popular area’s to live in. The estate has the added benefits of a play area and a new school making it ideal for a young family. The average three bedroom semi-detached house sells at around £322,500 and rents are roughly £1,200 per calendar month.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Eagle Avenue, in Weacock, have outperformed those on Berewood. This is because a three bedroom semi-detached house on Eagle Avenue can be bought for around £235,000 and the achievable rents can be around £900 per calendar month.
The yield which could be achieved from property on Eagle Avenue is around 4.6% per year. When we compare this to the possible 4.4% on Berewood. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties, you need to consider who your property will appeal to, how long a void period between tenancies if the property only appeals to a small proportion of the people looking to rent etc. The average value of a three bedroom semi-detached house on Eagle Avenue was £159,700 in 2014 which has since risen by 47% in the last 4 years. A three bedroom semi-detached house within Berewood in 2014 was £248,250, meaning the value has increased by 30% in the same 4 years which is an impressive increase for a new build development.
When purchasing a property within Berewood you will still have a proportion of the NHBC certificate for peace of mind which could mean less maintenance work, therefore you get to keep more of that 4.4% annual yield than a landlord of a property in Eagle Avenue, which is an older built house and will need more maintenance work required day to day.
If you would like more information on investing in Waterlooville’s property market, please call me.