Last week I took a call from one of my blog readers. Although she wanted to pick my brains about specific areas and where might be the best place for her to buy, she actually had very good local knowledge and knew a lot about the developments going on in town and some of the local hotspots which may benefit from these developments.

She was considering her 5th buy to let purchase. She’d always bought terraced properties and had no interest in deviating from this strategy. This time she was considering a property on Chester Road in West Watford and a second on Cecil Street close to Watford Junction. Two very similar streets and similar areas but with subtle differences such as appeal to certain types of tenants.
I decided to pull a few facts and figures out against these two roads to see how they compared. Looking at the last 12 months the average sale value on Chester Road was £257,187 whereas the average value on Cecil Street was £255,333. Not much of a difference there then!
The average rent in the last 12 months on Chester Road was £1,178 giving an average yield of 5.5% wheareas the average rent on Cecil Street was £1100 giving an average yield of 5.1% and whilst the numbers don’t make a huge difference those 0.4 percentage points actually can make quite a big difference to your return on investment.

So how does this help my blog readers? Well she was comparing an option on each street and given the above figures she would probably go for the property on Chester Road.
However, as much as I like to be analytical with any numbers I can get my hands on I know that properties on both Chester Road and Cecil Street sell well and rent well as they are in popular areas with their own individual USP’s. The difference in the figures is usually the size and the condition with the larger, nicer houses often achieving higher rents because of the scarcity of great quality rental properties in these areas and hence you will achieve better yield and return on your investment.
If you’d like to talk about a potential buy to let investment on a street by street, area by area, or town by town basis then give me a call on 01923 375 300 and let’s have a chat.
For more about us click here: Caley & Co