I was talking to a couple last week, who are considering becoming landlords for the first time and they were looking for advice as to whether a property on Baddow Road or Broomfield Road would make a better Buy to Let investment. They were interested in which would offer a better return/yield, and whilst properties on both streets can let and sell well, I wanted to do a bit more research to help them with their decision.
Over the last year, the average value of a property on Broomfield Road has been around £192,111; while on Baddow Road it was less, at around £197,782. To better understand the investment opportunities available, we considered the rents of the same period. The average rent achieved on Baddow Road was in the region of £888 pcm, giving an average yield/return of approx 5.3%. On Broomfield Road the average rent was slightly higher, at around £1065 pcm, with a corresponding yield/return of 6.6
However, one must also consider capital growth and how the value could change over time. In 1999, the average price for a property on Baddow Road would have been approximately £88,900 and on Broomfield road the average value was £102,700. This shows that the average property value on Baddow Road has risen by 122% since 1999, and on Broomfield Road has risen by 87%.
Ultimately, we found both streets to be equally good investments, but as you can see there is hardly any difference in the yields/returns or the increase in values, which we would not have identified without that extra investigation. In this case, it depends on the best available property to buy on the day.
If you are a landlord, new or old, feel free to visit our office on Duke Street to ask our opinion on which property investment is best for you.
