Last week, a couple from Valleyfield came in to the
office to discuss potentially investing in property for buy to let. One of the
most important things you will consider before investing is the balance between
annual return/yield and the annual value increase/capital growth. Namur Road in
Mauricewood is one of Penicuik’s premier roads to live on. It is one of the
most sought after places to live on the Edinburgh side of Penicuik. The average
house sells at around £220,000 and rents are roughly £900 per calendar month.
With this in mind, it was a surprise to find that houses
on Wyvis Park, off Eastfield Farm Road in Peniciuik, have outperformed those on
Namur Road. This is because a house in Wyvis Park can be bought for around
£110,000 and the achievable rents can be around £700 per calendar month.
The yield which could be achieved from property on Wyvis
Park is around 7.6% per year. When we compare this to the possible 4.9% on
Namur Road, it is nearly 55% higher in Wvyis Park.
However, we must remember that yield is not the sole consideration
when investing in buy to let properties. The average value of a house in Wyvis
Park in 2006 was £93,697, which has since risen by 19% in the last 10 years. A
house on Namur Road in 2006 was £140,750, meaning the value has increased by an
impressive 57% in the same 10 years.
Having this detail of information at our finger tips,
allows us to spot trends in the local market, which then enables us to give the
very best advice to our clients. We don't charge for that advice. If you
want some advice, come and see me in our offices (6 Bank Street, Penicuik),
email me (news@thekeyplace.co.uk)
or call me (01968 674601).
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