The cost of property is not just a subject vexing first time buyers, it’s also a concern to buy to let investors looking to achieve a decent return. As one of my landlords put it ‘How can you make a return when property has risen so much and is so expensive at the moment?’
Even at auctions, the stable of property bargains property is selling well in excess of the guide price.
However little gems can still be found. At Belvoir we watch the local sales market for interesting property and bargains. In November 2010 a three bedroom semi-detached house in Acacia Avenue in Yiewsley was sold for £256,000, four years later in November 2014 it was sold for £370,000.
That’s an impressive increase in value of £114,000 or 44.5% in 4 years, compared to average growth for UB7 of around 21% over the same period.
A good quality property in that area could achieve a rent of around £1,300pcm which would provide an equally impressive gross yield of around 6.1%. And even factoring in renovation costs of say £20,000 the yield would still be around 5.6% – very good for a three bedroom house.
Great yield and great capital growth, who says you can’t have both?
Before pictures on the left and after on the right….
