I was talking to a couple last
week, who are considering becoming landlords for the first time and they were
looking for advice as to whether a property on Victory Street or Alcester
Street would be a better investment. They were interested in which would offer
a better return /yield, and whilst properties on both streets can let and sell
well, I wanted to do a bit more research to help them with their decision.
The average house price of a
property on Victory Street is £110,500; while on Alcester Street was 38% more ,
around £152,500. To better understand the investment opportunities we need to
look at the rental yields. The average rent for a property on victory street
would be in the region of £595, giving a yield 6.5%. On Alcester Street the
average rent is in the region of £700 a month giving a yield of 5.5%.
However one most also consider
capital growth and how the value could change over time. In 2001 the
average price of a terraced house on Alcester Street was £67,700 and on Victory
street was £43,000. This shows that the average value on Alcester Street has
risen by 125% and on Victory street has risen by 156%.
Ultimately, from the information
on both streets we can see that Victory Street has a slightly higher yield and
the percentage increase in value since 2001 has been higher as well,
which we would not have identified without the extra investigation. I would not
totally discount Alcester street, as it may depend on the best available
property to buy on the day.
If you would like more information
in investing in Plymouth’s property market, please call me on 01752 710747 or
pop by the office for a coffee.
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