A landlord with a
small property portfolio came into our office on London Street last week. He
lives in a village between Ludgershall and Andover, and has properties in both
towns. He wanted to ask our opinion on where he should buy his next Buy to Let
property.
Looking at Andover,
the average property price can be an impressive £282,400 and the average rent
is equally high at £1045 per month. In Ludgershall, an average property is
£195,000 and the average rent is only £608 per month. The annual yield in Andover
could be around 4.5% per year, compared to Ludgershall where he could achieve
an annual yield of nearer 3.7%.
It made me consider
two other towns close by, Whitchurch and Pewsey. In Whitchurch, I found
property values are much higher than in Andover, with an average property price
of £359,600. They have an average rent of £1372 per month, which could achieve
a yield of 4.6%. The average price of a property in Pewsey is £361,150, with
rents of around £815 per month. This could achieve a yield of 2.7% per year.
It goes to show our
town of Andover can be a good area for an investment property as the purchase
price can be reasonable, but it is a decision that shouldn't be taken lightly.
These are only averages, so the yields for some small to medium sized
properties in popular areas of Andover can achieve yields of 4.5% to 6.5% per
year.
If you want to know
our thoughts on property in Andover, pop into our office.
This newly listed property is a great buy
to let prospect as the current owners would like to rent it from the new owner
if possible!
