I was talking to somebody last week from the Gillingham area, who was considering becoming a landlord for the first time. He visited us to ask us whether buying a property on Franklin Road or Balmoral Road 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...
The average price for a property on Franklin Road has been £198,098; while on Balmoral Road it was nearly 3% more, at £203,859. To better understand the investment opportunities available, we took a look at the rents achieved over the last year. The average rent achieved on Balmoral Road was £894 PCM giving a yield/return of 5.26%. On West Street, the average rent was slightly lower, at £824 PCM, with a corresponding yield/return of 4.99%. We found both streets to be as good as each other, but as you can see there is not much difference in the yields/returns, which we would not have identified without the extra investigation. In this case, it comes down to the best available property to buy, price and the investment strategy as there is the potential of converting into an HMO with the hospital and the universities nearby.
House prices on Balmoral Road over the last 5 years increasing by almost 27% with a monetary increase of £43,000 compare that to Franklin Road which increased by the same amount as Balmoral Road but a slightly lower monetary increase of £41,828. In terms of property types, flats in Franklin Road sold for an average of £134,133 and terraced houses for £177,480. Compared to flats in Balmoral Road sold for an average of £123,406 and terraced houses for £217,712. Shows us that terraced houses in Balmoral Road command a higher price compared to Franklin Road, something worth keeping in mind if he ever wanted to see the investment property.
If you are a landlord, whether you deal with us or not, feel free to get in contact with us to ask our opinion on which property investment is best for you.