A landlord came into our office to ask whether Berry Way, Burghclere Down or Herons Rise would be a better place to invest in. He was considering purchasing a 2 bedroom mid terraced house, after reading a recent newsletter we had sent him.
The properties on Herons Rise were predominately built in the 1970's. They were built by a local builder, predominately for the first time buyer market. This has remained the case but they have also become popular with buy to let investors. The Burghclere Down development was built in the early 2000’s. The properties here are more aesthetically attractive as is often the case with properties built after the 1970’s, and are of a similar size to those on Herons Rise. The average value of a mid terraced house on Herons Rise is £149,000 whilst on Berry Way a mid terraced house has an average value of £180,000
On Herons Rise, a two bedroomed mid terraced house can achieve rents of around £725 per month, with a three bedroomed mid terraced house achieving around £800 per month. Looking at the rents for Berry Way, a two bedroomed mid terraced house can potentially achieve £775 per month, with a three bedroomed semi-detached house achieving around £875 per month. Both have similar yields of around 5.8% to 5.2% per year, therefore making both areas sensible propositions.
If you would like any advice when choosing properties, you may come and see us at our office on London Street.