Montgomery Walk or Cunningham Road...Which is the best investment?
I was talking to somebody last week who has recently moved to Bedhampton, he is considering becoming a landlord for the first time. He discussed whether buying a property on Montgomery Walk or Cunningham Road would make a better Buy to Let investment, and which would offer a better return/yield. He knew the area well, he‘d lived around there over ten years ago. I confirmed that the properties on both streets let and sell well, but I wanted to do a bit more research to help with his choice...
The average price for a 3 bed semi-detached house on Cunningham Road is £220,000 while on Montgomery Walk is nearly 8% more, at £240,000. To better understand the investment opportunities available, we took a look at the rents achieved over the last year. The average rent achieved on Cunningham Road is £995 pcm, giving a yield/return of 5.43%. On Montgomery walk the average rent was again £995 pcm, with a corresponding yield/return of 4.98%. We found both streets to be as good as each other, but as you can see there is hardly any difference in the yields/returns, which we would not have identified without the extra investigation. In this case it really comes down to the best available property to buy on the day.
If you are a landlord, whether you deal with us or not, feel free to contact us to ask our opinion on which property investment is best for you.