A landlord came into our office to ask whether the Picket Twenty or the Saxon Fields development would be a better place to invest in. She was considering purchasing a mid-terraced house.
The properties on Picket Twenty are still being built but there are plenty now coming up for re-sale. This development is built mainly by 3 of the main builders in the country and is an attractive development. The Saxon Fields development was built in the mid 1990’s. This development has matured really nicely and is very popular with couple and young families with lots of green space around it, including the Anton Lakes nature reserve. The average value of a mid-terraced house on Picket Twenty Way is £254,074, whilst in Altona Gardens on Saxon Fields a mid-terraced house has an average value of £207,655.
On Picket Twenty, a two bedroom mid-terraced house can achieve rents of around £900-£925 per month. Looking at the rents for Altona Gardens, a two bedroom mid-terraced house can potentially achieve £800-£825 per month. So Picket Twenty currently has the better yield of 4.3% while Saxon Fields offers a yield of 4.7%. The new development is demanding higher rents at the moment but the older property is providing a better return. Both are equally popular with tenants.
If you would like any advice when choosing properties, please pop in and see us at our Bridge Street offices.