A couple of local landlords and I were talking about the property market in Uxbridge, after they had seen my ‘Uxbridge Property Blog’ when the subject of risk versus return came up.
All landlords are different in their approach to property and risk. Some prefer to accept a modest yield/return on their investment for an increased certainty of finding a reliable tenant. Other landlords are interested in high returns, willing to take greater risks. Before you start investing it’s a good idea to have a game plan.
For a lower risk investment you could buy a three bed house in an area of Uxbridge or Hillingdon or say Ruislip which would let on a lower yield and will have a fair chance of capital growth. There are plenty of estates with houses like these near tube stations such as Oak Farm or South Ruislip, where you can achieve a yield be-tween 4-5.5%. Flats perhaps in areas like Cowley or West Drayton where the lengths of tenancy may be shorter should achieve a higher yield of around 6%. If you are after yields of 8% or more you can take more risks with houses of multiple occupancy where tenants are traditionally more transient and these properties need more involvement to maintain.
In real life property is no game, if you would like advice on choosing properties, come and see us at our office in Hillingdon Hill or call 01895 257935.
