Another interesting factor which I wanted to point out is the actual increase in capital growth. As we have spoken about many times, it is not always down to the biggest ‘yield’, the rise in value should also be taken into account. Some houses may not generate a high yield, but their capital growth potential is far greater. This particular property was last sold in 2011 for £193,000. If it achieves it’s asking price of £222,995, you are looking at a 15% increase in capital in just 3 years! The majority of this rise to be fair would probably have been just in the last year alone.
Another interesting factor which I wanted to point out is the actual increase in capital growth. As we have spoken about many times, it is not always down to the biggest ‘yield’, the rise in value should also be taken into account. Some houses may not generate a high yield, but their capital growth potential is far greater. This particular property was last sold in 2011 for £193,000. If it achieves it’s asking price of £222,995, you are looking at a 15% increase in capital in just 3 years! The majority of this rise to be fair would probably have been just in the last year alone.