Henderson Street in Levenshulme outperforms Beaver Road in Didsbury by 72%
Last week a landlord of mine came in to the office for a chat as he is looking at moving abroad with work and is looking at now renting his home out whilst he is away. We got talking about the buy to let market and also how his current property is performing versus how his home has performed. It is important to take into consideration when investing in property the balance between annual return/yield and the annual value/capital growth. My landlord lives on Beaver Road in Didsbury and this is one of the most sought after Streets to live on due to its proximity to the centre of Didsbury and Beaver Road Primary School. The average three bed semi detached house sells at £329,000 and rents at £1200 per calendar month.
With this in mind, it was a surprise to find that three bedroom house on Henderson Street in Levenshulme have outperformed those on Beaver Road. This is because a three bedroom house on Henderson Street can be bought for around £117,000 and achievable rents can be around the £750 per calendar month.
The yield which could be achieved from the property on Henderson Street is around 7.6%. When we compare this to the possible 4.4% on Beaver Road. It is nearly 72%. However we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bed house of on low street in 2003 was £72,645, which has since risen by 61% in the last 13 years. A three bedroom semi-detached house on Beaver Road in 2003 was £195,667, meaning it has risen by a very impressive £133,333 or 68% in the same 13 years.
If you would like any advice on investing in the South Manchester property market then please feel free to pop into our office or drop me an email [email protected]