The wife and I always like walking along St Andrews beach and generally pottering round the town, sometimes peering in the estate agents windows, as you do.
Now its not in my area but I thought I would have a quick look at rental potential and capital appreciation in general between similar property types between there and Newport-On-Tay another area we like and which is in my patch.
Now I assumed that St Andrews would be the better of the two towns for capital appreciation at the least so I was quite surprised when the figures didn’t support that.
I decided to look at semi detached properties because I think that they are generally a good buy and I didn’t want the HMO properties that there are a lot of in St Andrews to distort the statistics too much.
What I found was that the capital appreciation in St Andrews for a semi detached property over 1 year, 5 years and 10 years respectively was – 2.66%, 15.06% and 28.43%. Not to bad and there seems to be a pretty consistent demand in the town.
Now lets have a look at the same figures for the same period in Newport, they come out as 4.81%, 17.25% and 42.97%.
Somewhat more impressive I think you would agree. What we are fundamentally saying is that over a ten year period the capital appreciation for that type of property was 51% higher in Newport than in St Andrews.
Rental yield is a little harder to be precise about due to the affect of the HMO factor in St Andrews, that said I would certainly concede that yields in St Andrews are probably higher assuming it’s a at least a three bed semi.
It depends what your looking for, both yield and capital are nice but such a strong capital appreciation does have a value of its own.
What this really shows is that research is king whatever and wherever your buying property.
If you have any question concerning this or any other aspect of the lettings market in and around Dundee then please don’t hesitate to contact me at nick.horan@belvoirlettings.com
