I was chatting to a
landlord with a small property portfolio last week. He lives locally and his
properties are primarily in Warrington and the surrounding area. He wanted to
ask my opinion on where he should his next Buy to Let property.
Looking at Runcorn,
the average property price is around £115,000 and the average rent is around
£495 per month. In Widnes, a similar town in profile, though a bit smaller, an
average property is £145,000 but the average rent is also higher at £550 per
month. The annual yield in Runcorn using these figures is around 5.1% per year,
compared to Widnes where he could achieve an annual yield of nearer 4.5%. It made me consider what these figures would look like for Warrington, if we
look at averages. Warrington’s average property price is slightly higher than Runcorn at £125,000. Average rents are around £600 per month, which means
that with regards to return, it places above both of the neighbouring towns and
produces a yield of 5.7%.
It goes to show our town
of Warrington is be a good area for an investment property, but it is a
decision that shouldn't be taken lightly, all three town have their merits.
These are only averages, so if you buy wisely and are in a position to move
quickly you could pick up a property that will produce a yield of between
6.5-9.5%.
The trick is knowing WHAT and WHERE to buy! Keep an eye on the blog
for any properties that I think represent a good bet in the realms of
buy-to-let investment.
If you enjoy reading my articles please visit the links below to view back dated issues.
Twitter,https://twitter.com/HHWarrington
Blog, goo.gl/lzhnEi
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