Property on
Poundbury lets for appreciably more than property in other parts of Dorchester
and therefore attracts landlord's looking for property investment.
Rental return is not the only consideration and capital
growth is also equally important over the long term. 2 Bed apartments in Middlemarsh Street cost,
on average £147k in 1999 as newbuilds. In 2013/14 the average price achieved
was £148k! However, overall returns on these
apartments are around the 6 % mark – a reasonable return. Of course this is not to say that prices here
will not rise more in line with other areas from now and of course may even
exceed national averages meaning that you will get that capital growth.
Looking at 3 bed terraced property the average asking price
is around £300,000 which would rent for £900 showing a return of 3.5%-not so
good when you take into account your costs. I would imagine that there is still
some levelling out to happen here. The number
one rule of good investing applies here as anywhere. Do not
overpay as you will spend years waiting for the value of your property to
fall back into line with others in the area as they appreciate.
It could still be a good area to invest for the small investor
though. The properties are modern and people like to live here.
On another tack altogether Martin and Co are launching brand
new insurance offerings for Landlords and Tenants. These include Buildings cover for empty
properties and a stunning rent guarantee product that is amazing value and
delivers the benefits. Speak to us to
find out more as there are some great financial incentives for Landlords as
well.
Philip Wakefield Property File
Martin and Co 01305 775504
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