I was talking to someone who lives in a detached house on Saxon Fields. He wants to purchase his first Buy to Let property and has noticed our rental index and previous articles, so was interested in getting to know the industry a little bit more.
As he has lived in Saxon Fields for over 8 years and he felt comfortable investing in there as he knew it well, we started to discuss the property market in this area.
Firstly, we found that 113 semi-detached houses have sold in Saxon Fields since the year 1999. Property values in Andover have risen on average by around 22% over the last 10 years, but most semi-detached properties on Saxon Fields have beaten that rise all be it by only a small amount of 1.5% at 23.5%.
When we look back to 1999, a three bedroomed semi-detached property in Jutland Crescent, Saxon Fields was bought for £90,000 and sold in 2015 for an impressive £234,950. With excellent capital growth you would expect yields to be comparatively lower, but most three bedroomed properties on the development can be picked up from around £230,000 and could have achievable rents of £900 to £950 per month. This means annual yields can be around an attractive 5% which coupled with the capital growth isn’t too bad!
If you would like to talk to us about your potential investment, please come into our office on Bridge Street.