Monopoly In Plymouth - How Would You Play?

A couple of local landlords and I had a discussion about the property market in Plymouth, 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 suburbs of Plymouth such as Plympton or Plymstock which are perceived as being more desirable. You may be able to achieve an annual yield of around 4-5%, depending on the property. However if some of you have followed my previous articles you will know that Capital Growth in these areas over the last 12 months will off set the low yield. 

If you don’t mind a slightly higher yield and a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-7%. This level of risk can be typically taken with Victorian terraced houses around Keyham, with a traditional 2 up to 2 down property.

If you are after annual yields of 8% and over, you could take more of a risk with houses of multiple occupancy or properties in the poorer areas of town which may attract tenants of a low quality. Ex Local Authority flats in areas such as St Budeaux often achieve yields of 8% plus, I have a few examples of this on my blog.

If you would like any advice on choosing properties, come and see us at our office in Stoke village in Plymouth for a hot drink or give me a call on 01752 710747.

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