I took a call from a local investor this week who was looking at two different properties and wanted a second opinion on them. He sent me the links to the two properties on Rightmove – which I’m happy for anyone considering a purchase to do – and asked me to weight up the Pro’s and Con’s for him.
The first property looked lovely.  A very well looked after 2 bed terrace on Grover Road – close to Bushey Station and a not so well looked after 2/3 bed terrace on Regent Street  off St Albans Rd.
Grover Road Vs Regent Street
The property on Grover Rd was priced at £380,000 which is expensive in Watford for a 2 bed however this property is almost Oxhey Village (depending on who you ask) and Oxhey Village commands a higher price for terraces than central and north Watford. So in my opinion priced correctly if not a little expensive but there’s nothing to stop you making offers.
The property on Regent Street was more affordable being priced at just £330,000 but as I mentioned would benefit from decorating, new carpets and perhaps a refresh in the kitchen/bathroom. (This is my quick opinion from the photos by the way). In total you may want to spend £10,000 on the property to improve it in order to get the best possible rent.
In the current climate you would achieve up to £1250 per month in rent for the property on Grover Road and probably £1175 for the property on Regent Street when the work has been done.
This means a yield of 3.95% in Grover Road and comparatively 4.15% on Regent Street. So if you are looking for the better yield then Regent Street might be a more favourable option. These figures take into account the £10k you would have to spend to get it up to scratch.
That said Grover Road is in lovely condition and could be rented immediately whereas Regent Street does need that bit of TLC/work so you are likely to be delayed a little in finding a tenant and you have to go through the trouble of finding tradesmen and organising the work.
Both Streets are in good locations with very similar demographic of tenant likely to apply to rent the properties. Both are a little tough to park on but similarly both are close to mainline train stations. Grover is slightly closer to Bushey Station and Regent Street is a little further away from Watford Junction but it does have more regular fast trains.
In the case of this investor he is a cash buyer and didn’t mind a small project so Regent Street seemed more favourable to him.
That doesn’t mean however this is the best option for everyone. If you haven’t got the time or the inclination to organise the work then perhaps Grover Rd would be the better option.
When it comes to investing in property you have to find what works for you so depending on your situation and experience one property may suit you more than someone else who has a different set of skills and experience.
Regardless of who you are or what your level of experience is I’m always happy to offer you a friendly and impartial second opinion on your considered investments. I enjoy talking about the local market with other local investors so why not pick up the phone for a chat.