If you’re not keeping a close eye on the property market at the moment and you own rental property in Watford then you could be in for a pleasant surprise when you get it valued. I bumped into a client of mine last week who has a couple of flats that we manage for him and he wanted to know if he could re-mortgage to get a bit of money out so he could buy another. He was astounded when I helped him to work out the value of his current properties and this is a real indicator of what’s gone on in the last 12 months.
According to Home.co.uk if you look at the average asking price now against the average asking price 12 months ago you may well be very surprised too. The average asking price for flats in Watford was £256, 368 in Jan 2014 and now, 12 months later, it is £351,754. This is an incredible increase of 37%. Terraces have experienced a similar increase of 36% going from £336,373 to £456,104 in the space of 12 months.
Strangely the average asking price for a semi-detached property only increased 4% in the last year and I was quite shocked to see that the average asking price for a detached house decreased -3%. Had you only looked at the first 6 months of 2014 it would have been a different story as detached houses were showing a large increase but they dipped back down again over the following 6 months.
Let’s go back to the flats and terraces. When researching the increase in asking price by number of bedrooms I found that the average asking price for a 1 bed property increased 12% in the last 12 months whereas the average asking price for a 2 bed property increased 18%.
The best yield in Watford can often be found on the 1 bed flats however according to the above figures the better growth would be on the 2 bed units regardless of whether they are flats or houses. So what do you go for? The yield or the potential growth?
If you’re considering an investment property in the local area then give me a call on 01923 375 300. There is no one-size-fits-all option with property and everybody has a different priority or reason to invest. I’m happy to take the time to help work out what is best for you. I don’t charge for my time and I don’t try to sell you my Letting service during this process. I know from experience that the information I offer is valued by my clients and when they buy a rental property they often return to ask me to market it for them.
If you’d like to know more about us go to: Caley & Co