Last week, a couple from Valleyfield came in to the office to discuss potentially investing in property for buy to let. One of the most important things you will consider before investing is the balance between annual return/yield and the annual value increase/capital growth. Namur Road in Mauricewood is one of Penicuik’s premier roads to live on. It is one of the most sought after places to live on the Edinburgh side of Penicuik. The average house sells at around £220,000 and rents are roughly £900 per calendar month.
With this in mind, it was a surprise to find that houses on Wyvis Park, off Eastfield Farm Road in Peniciuik, have outperformed those on Namur Road. This is because a house in Wyvis Park can be bought for around £110,000 and the achievable rents can be around £700 per calendar month.
The yield which could be achieved from property on Wyvis Park is around 7.6% per year. When we compare this to the possible 4.9% on Namur Road, it is nearly 55% higher in Wvyis Park.
However, we must remember that yield is not the sole consideration when investing in buy to let properties. The average value of a house in Wyvis Park in 2006 was £93,697, which has since risen by 19% in the last 10 years. A house on Namur Road in 2006 was £140,750, meaning the value has increased by an impressive 57% in the same 10 years.
Having this detail of information at our finger tips, allows us to spot trends in the local market, which then enables us to give the very best advice to our clients. We don't charge for that advice. If you want some advice, come and see me in our offices (6 Bank Street, Penicuik), email me (email@example.com) or call me (01968 674601).