I was talking to somebody last week from the Badgers Gate area, who was considering becoming a landlord for the first time. He visited our office to ask us whether buying a property on Victoria Street or Edward Street in Dunstable town centre would make a better Buy to Let investment, and which would offer a better return/yield. He knew the area well, as he lived around there over ten years ago. I confirmed that the properties on both streets let and sell well, but I wanted to do a bit more research to help with his choice…
Over the last three years, the average price for a property on Victoria Street has been £144,147 while on Edward Street it was over 6% more, at £153,200. To better understand the investment opportunities available, we took a look at the rents of the same three year period. The average rent achieved on Victoria Street was £725 pcm, giving a yield/return of 6%. On Edward Street the average rent was slightly lower, at £715 pcm, with a corresponding yield/return of 5.6%. We found both streets to be as good as each other, but as you can see there is hardly any difference in the yields/returns, which we would not have identified without the extra investigation. In this case it really comes down to the best available property to buy on the day.
If you are a landlord, whether you deal with us or not, feel free to visit into our office on Church St in Dunstable to ask our opinion on which property investment is best for you.
