Do we invest for long term capital growth or yield or for other reasons such as buying for future generations of the family? This particular property might appeal for a couple of these reasons.
The nice folks at Coopers are selling a two bedroom house on Oakleigh Road in the respected Oak Farm Estate. The neighbourhood is really quite nice but then Oak Farm has strong long term prospects being located close for access to the A40 and being in walking distance of the Hillingdon Circus tub station. There are also plenty of well respected schools in the area.
It’s a free hold property so no need to seek permission for drilling through the walls and those leaseholder shenanigans than can cause worries with flats.
The price is £330,000 which seems to be a reasonable asking price in the area for a two bed. One sold at £350,000 in October and a couple when for around £315-£325,000 in September 2015. Even though the particulars mention recent works (new heating system) the pictures indicate further works would be needed to reach a reasonable rental value.
The rental value range for a two bed on the Oak farm is quite wide with terrace houses at around £1,400pcm. I would expect great fittings and a modern standard of decoration for that and in current condition (sight unseen so this is rough) something like £1,200pcm might be more reasonable. £1,200pcm would make a yield of 4.4%. Which is not a bad yield in the current climate.
I wrote about Oak Farm in March 2015. Prices have gone up in the meantime! And a couple of years before that Sept 2013 for comparison on those prices.
Belvoir Uxbridge are lettings specialists, but we do guide people based on our experience as to what might make a good buy to let property investment in the Uxbridge, Hillingdon, Hayes and West Drayton area. But the decision is theirs. We don’t charge for this service but we would like to manage your property or help you find great tenants.
