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