7 November 2014

Are one bedroom flats in Andover good investments?

Flats are always a good investment in the Andover area.  If you are considering buying a flat its always best to try and get two double rooms if going for a 2 bed as this widens your market to sharers as well as couples, if you are happy to go down this route.
There are over 2,400 flats in Andover.  This represents around 13.8% of the housing stock here, with the national average being around 17.3%. The average price of flats with one or two bedrooms in Andover is around £134,600, which is just over 6% higher than 12 months ago.

You can buy a one bedroom flat in Forge Field at the bottom of New Street, for a very reasonable £120,000. If a landlord put down a £20,000 deposit and borrowed the rest, they could achieve around £600 per month in rent. Even after paying the service charge, yields could reach around 5.2% per year, fairly standard for the area. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.
Finally, let’s not forget about the potential increase in capital value of the property. I was looking at the one bedroom flats in Forge Field and found that they sold for around £103,000 five years ago.  The price has increased by around 12% since then so giving a healthy profit, as well as a good monthly income

If you would like some advice about what could make a good investment, please visit our office.

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