Monopoly In Waterlooville...... How Would You Play It?
A couple of local landlords and I had a discussion about the property market in Waterlooville, when the subject of risk against returns arose.
All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.
For a low risk investment, you could buy property in the areas of Waterlooville which are perceived as being more desirable, such as within the Tempest area of Waterlooville, where you may be able to achieve an annual yield of around 4-5%. If you don’t mind a slightly higher risk of void periods, you are likely to be rewarded with a higher annual yield of 5-6%. This level of risk can be typically taken with new build terraced houses around Waterlooville.
An average 2 bed house within the Tempest estate are currently selling for £230,812 and renting for around £900 per calendar month depending upon condition. Whereas to purchase a 2 bed house on the new Berewood estate this would set you back around £270,000 but rent for £1,100 per calendar month.
If you would like any advice on choosing properties, please contact us.