Most of the investors I speak to are looking for certain types of property in the obvious areas in Watford. And to be honest they have a good reason to do so. WD18 and WD24 are the most popular areas due to their proximity to town, the young professionals market that desire rental accommodation in these areas and of course the good balance between capital growth and yield that you can achieve there. However I had an investor who lives on the Kingswood estate, well outside of the ‘popular’ areas call me who wanted to buy another property on the same road as him so we discussed the figures and the pro’s and con’s.
Kingswood Estate - Letting Agents Watford
The Kingswood estate is a relatively small but defined area so it was easy to find that the average sold price during the second half of 2014 for a 3 bed semi was £352,250. When compared to the back half of 2013 where the average value was £267,600 we found this to be an impressive 31% increase year on year. Zoopla tells us that the average increase in WD25 over the last 12 months was 11.04% which is good for any investor but the Kingswood estate has performed almost 3 times better than that!
So is this a hotbed for investors and should you get in there right now? Well with many exciting prospects you have to take the good with the bad. If you look at the average rent for the estate for a 3 bed semi (and there are very few that make it to the rental market here) then we can take an average of around £1395 per month for a 3 bed semi which means a yield of 4.1%. This isn’t terrible but it is below average for Watford.
Great capital growth versus low yield is often a question property investors have to ask themselves. There is no one size fits all answer. It’s down to you as an investor and what works best for you.
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If you’re not sure what works best for you then give me a call on 01923 375 300 or email james@caleyandco.com
and I can help you work it out.
For more about us click here: Letting Agents in Watford