I was talking to a landlord from Exeter the other day about
the Plymouth property market, following my recent articles that he had read on LinkedIn.
With all the news about house prices rising and now they are cooling again, he wanted to know what had
happened to average property prices since the New Year.
Well there is no such
thing as an ‘average property’, but according to my calculations, the ‘average
value of a property’ in Plymouth is now £180,800 which is a rise of nearly £17,200
from what they were 12 months ago. However if you look at the last 3 months your will see that prices have not been growing as strong with a rise of just £2400.
Now by my calculations,
the average rent being asked in Plymouth is around £703pcm, which means the
yields/annual return are an impressive 4.7% per year. In the last 12 months, the average value of a
property in Plymouth has risen by 10.1%, meaning landlords achieved a total return
of 14.8%.
When comparing this to what you get in return from banks, buy
to let could be good investment for you. Don't get me wrong, there are
pitfalls. My message to all the people of Plymouth, be you an
existing landlord or you are thinking of dipping your toe in the water for the
first time is quite simple. Take some independent advice before buying anything,
unless you're 100% sure of what you're doing. I say this because I know what
happens when people don't.
Even if it's not from ourselves, there are still a few
other regulated 'lettings only' agents in Plymouth who are well placed to advise on
whether the property you're considering will rent, and at what potential price.
We're certainly more than happy for you to pop in and see us at our office's Stoke Village for a chat and a nice brew.
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