I was discussing capital growth in property with one of my landlords. A number of years ago this gentle-man was thinking of moving and so bought a couple of properties that he would consider living in himself, he then let them out, safe in the knowledge that in the future he would have somewhere to move to that he liked. This is not necessarily a strategy I would advocate, as good buy to let advice tends to begin by explaining that you should be dispassionate about the property and think about tenants needs rather than yours when considering property. But it worked for him!
So back in 2006 my landlord decided to purchase a three bed property in Ickenham. As we know with the benefit of hindsight 2007 and 2008 were torrid years for property prices, but having sold the property a couple of years ago he still managed to bank a good profit. This is because Ickenham with it’s higher av-erage price remained relatively stable and recovered quickly. In Northwood and other affluent areas and streets house prices also performed well. Yields tend to be lower in these areas however, but there are still decent yields to be found.
Although Uxbridge and the surrounding area have rental yields of on average 5.3%, yield will change from property to property, another factor to consider is location and it’s impact on capital growth when buying an investment property. Often buying investment property is a trade-off between yield and capital growth.
If you would like more useful information call in for coffee at our office on Hillingdon Hill, Uxbridge or give us a call.
