28 November 2016

Bargains in the Andover area

A Landlord of ours was after advice about property in Andover with a reasonable yield but that also should keep up with price increases in the area and not hit a ceiling, as some properties can so I did a bit of research for him.

I found a four bedroom detached property with integral garage on the very popular estate of Winton Chase was bought in July 2013 for £240,000.  It was then sold on in June of this year for £360,000, a huge 50% increase in a relatively short space of time.  Admittedly it had undergone some upgrading and the market had naturally gone up over that period but still a very impressive increase none the less.  Across the SP10 region average prices have gone up by 29% so this property has performed very well.  You should achieve a rental value on a property like this of around £1300pcm thereby giving a yield of 4.3% which is respectable.  Therefore if you can find a property like this, needing a little tlc you can make a sensible return and benefit from the re-sale value when you are ready to sell on.

If your budget is slightly more modest there are still opportunities out there.  I found a two bedroom flat on Woodpeckers, Heather Drive which sold in January 2014 for £115,000 then resold in July this year for £145,000 giving an increase over that period of around 26% which, again, is pretty good.  Add to this a rental value of £675pcm this will give you a yield of 5.5% which is about right for the area. 

So, its all about knowing what you can do to a property to lift the value without just relying on natural uplift as this doesn’t always happen but making sure it will give you a good rental return as well.

For more hints and tips, pop in or follow our blog.

No comments:

Post a Comment