A landlord
with a small property portfolio came into our office on Bank Street last week.
He lives between Penicuik and Dalkeith, in Rosewell, and has properties in both
towns (although interestingly not Rosewell itself but that is a discussion for
another day!). He wanted to ask our opinion on where he should his buy his next
Buy to Let property.
Looking at Dalkeith,
the average property price can be an impressive £192,600 and the average rent
is £705 per month. In Penicuik, an average property is £183,700 and the average
rent is interestingly £741 per month. The annual yield in Dalkeith could be
only 4.4% per year, compared to Penicuik where he could achieve an annual yield
of nearer 4.9%.
It made me
consider two other towns close by, Bonnyrigg and Gorebridge. In Bonnyrigg, I
was surprised to find property values are much higher than in Penicuik and
Dalkeith, with an average property price of £202,100. They have an average rent
of £823 per month, which could achieve a yield of 4.9% which is similar to
Penicuik. The average price of a property in Gorebridge is £179,500, with rents
of around £596 per month. This could achieve a yield of 4.0% per year.
It goes to
show our town of Penicuik can be a good area for an investment property, but it
is a decision that shouldn't be taken lightly. These are only averages, so the
yields for some small to medium sized properties in popular areas of Penicuik
can achieve yields of well in excess of 6% per year and in less popular areas
they can achieve well in excess of 8%.
If you want
to know our thoughts on property in Penicuik, come and see us in our office (6
Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).
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