I was having a chat with a first time property investor yesterday about where they should be spending their money when it comes to property investment in Watford. They weren’t that fussy about what type of property it was and had looked at a few different areas. They were considering 2 different properties they had viewed in the last week. One in West Watford and the other in North Watford.
They asked me about the two different areas and as I haven’t done the figures on both areas for a couple of months I promised I’d do a quick report for them. So they could compare the two in terms of investment.
WD18 VS WD24
Both areas are popular with tenants although there is probably a greater variety of housing stock in West Watford, which means potentially different types of tenants depending on where you area. North Watford (and we’re talking WD24 here rather than Leavesden or Garston) has the benefit of being closer to Watford Junction Station. Anywhere around the southern parts of St Albans Rd and Leavesden Rd areas you are more likely to attract tenants that commute to London. We could look at this in a lot more detail and go into the types of tenants but let’s have a look at the numbers in each area.
WD18 has around 8,300 properties. 85% of these are either flats or terraced houses. The average price of a home in the area is £300,854 and the average rent is around £1150 (over the last 3 months) which gives you an average yield of 4.6%. This is not bad at all considering the recent increase in house prices. Its no real surprise that 32% of the property in this area is owned by investors!
WD24 or North Watford has around has about the same amount of homes as West Watford. The average value of a property is £308,444 and the average rent is £1050 which means there is a lower average yield of just 4%.
I was quite surprised to see the difference in the yields above as I would have guessed both area would be fairly similar. Knowing the area as I do, I know that you can find yields in WD24 that are just as good as WD18 and if you buy the right properties in either area you can also achieve a higher yield than the quote figures above which are more of a general guide.
If you really want an accurate comparison then you’ve got to go down to a street by street level.
I LOVE looking at the Watford property market and seeing how it’s performing and would be happy to help you do the same.
If you are considering your next or first investment then why not give me a call to discuss your options. Caley & Co don’t sell properties so our opinion on your purchase will always be impartial.
If you would like a review of a current rental property/portfolio to see if you could be making a little more profit from it then feel free to get in touch with me on 01923 375 300
Caley & Co are a local specialist letting agent and although I write the above for pleasure and for the benefit of my investors our core business is lettings. If you are not happy with your current agent or need some help marketing or evening managing a property then why not give us a call to see if we can help.