I have been
living in and around Warrington for most of my adult life and, so; the majority
of my investment properties are also located around Warrington. That’s not just
because it’s where I found the best deals however – yes the numbers stacked up,
but what really swings it is knowing the area. I know where to buy for yield AND where to buy for capital growth. I
also know area affects the type of tenant you will attract: whether it’s large families,
young couples or even single professionals.
When it comes to investing in property, the safest way to invest is stick
to where you know.
I was recently
asked why there are so few properties to rent on the Castle Green Estate in Westbrook.
With having
local knowledge, I knew that Castle Green is an area where families tend to buy rather than rent. However, I thought I would do some research into the estate.
I found that
since the start of 2016, only six properties have been available for rent on
the Castle Green Estate – one of Warrington’s most popular housing estates.
Castle Green in More Detail
To be honest,
I was a little surprised that it was that high. If I look at the six properties
that have been up To Let in Castle Green, the price ranges from £795pcm to £1,250pcm. While this may seem like high rental income, when we look
at the average property price on this estate (coming in at £240k), we can see that
it doesn’t stack up financially. In turn, this answers the question of why
there are so few rental properties on the Castle Green Estate.
After going
through those numbers, I did a little bit more digging to see if these houses
performed better for capital growth. Some of these
houses actually sold for around the £70k – £80k back in 1995 – 1997 and the
properties are now worth £240k+. Although they may not be producing the great yields of 8+% that
you can achieve in other areas of Warrington, the long term growth on these
houses is great.
We can help
you identify property values and other useful property related information to
make sure you can get everything you need about your future investments.
Warrington Property Facts
The average house price in Warrington is £209,200 (according to mouseprice.com) and the average income of someone living in
Warrington is £21,458 per year.
The price to
earnings ratio is an effective measure of the relative affordability of property in a given area. The higher the
number – the more expensive it is to buy. In Warrington, the ratio is 9.75, compared to 11.92 nationally. Looking at the figures
above, it shows that the average property in Warrington is almost worth ten times the average household income. So we can safely say that the rental
market remains in high demand.
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If you are a
landlord or thinking of becoming one for the first time and you want to read
more articles like this about the Warrington Property Market, together with regular
postings on what I consider the best buy to let deals in Warrington (out of the
many of properties on the market, irrespective of which agent is selling it) then
feel free to get in touch!
Email me on
manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area,
feel free to pop into the office – we are based on 6 Bankside, Crosfield St,
WA1 1UP. There is plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Twitter, https://twitter.com/HHWarrington
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