Houghton Road or Edward Street…Which is the best investment?
I was talking to somebody last week from the Gonerby Hill Foot area, who was considering becoming a landlord for the first time. He visited our office to ask us whether buying a property on Houghton Road or Edward Street 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 Edward Street has been £90,681; while on Houghton Road it was nearly 4% more, at £93,103. 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 Houghton Road was £462 pcm, giving a yield/return of 5.95%. On Edward Street the average rent was slightly lower, at £452 pcm, with a corresponding yield/return of 5.98%. 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 St Peters Hill to ask our opinion on which property investment is best for you.
