Following a discussion with one of my landlords about the two areas, I did a comparison and was surprised to find that the annual yield/return on the Barrowby Gate is less than the Earlsfield. The average price of a property in the Earlsfield is £89,200, whilst on the Barrowby Gate it is £173,000. The last few months have seen the average rent on the Earlsfield to be around £495 per month and around £825 per month on the Barrowby Gate. This means the annual yield/return would be 6.7% if you were to buy a property in the Earlsfield, but only 5.7% on the Barrowby Gate…
This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how long it takes to find a tenant. The average time it takes to find a tenant in the Earlsfield can be up to five weeks, whereas on the Barrowby Gate a tenant is usually found in two weeks. If you take into account the extra three weeks of void period for your property, you are losing rent and therefore annual overall return from the property.
We don’t sell property, but we can help you to find the best investment property with our specialist lettings advice. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on St Peters Hill.
