Buy to Let Property Hotspots – Showcasing Norwich

by Mark Alexander

13:10 PM, 25th June 2012
About 8 years ago

Buy to Let Property Hotspots – Showcasing Norwich

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Buy to Let Property Hotspots – Showcasing Norwich

Every Town and City in the UK has its own unique set of dynamics when it comes to property values and rental yields. For example, I know that in Norwich, one the most established areas for letting is known as the Golden Triangle because it’s very close to the University, the Hospital and within easy access of the City Centre. The North of the City is also incredibly popular for lettings due to the number of East European migrants and offshore workers who need easy access to the airport and the industrial estates around it. Prices and yields within just a mile of the airport differ massively though.

As an example I’ve taken a look at the major property portals and searched for three bed properties within a mile of the Norwich Airport postcode. The results are quite astonishing:-

On the market for £325,000 - rental value £900 pcm

On the market for £100,000 - rental value £750

 

 

 

 

 

 

 

 

 

As you can see, one property is more than three times the price but the rental value of the more expensive one is only 20% more. When we convert these numbers into rental yields, the more expensive property returns a gross yield of approximately 3.25% whereas the cheaper property produces a more more attractive yield of 9%. The returns from both are better than you would would get from a bank account at the moment, especially when you add long term capital growth from increasing property values over the longer term. Nevertheless, as an investment property as opposed to something you might buy to live in yourself the returns are very different as you can see. Why would you accept a 3.25% return on your money when 9% is possible?

This article is sponsored by

 

 

 

 

 

 

Simply click on their logo above to link to their website for contact details and further information.

In the interests of transparency, AA-Lettings is owned by my brother, Adam Alexander and his wife. The business was created to manage the property portfolio of our family members and is now looking to expand to service the needs of other landlords with property based in Norfolk. Landlords are encouraged to retain their own deposits and to arrange their own deposit protection via the NLA My Deposits scheme.  AA-Lettings does not hold client monies for longer than 5 days.

Buy to Let Property Hotspots Sponsorship Opportunities

This type of sponsorship article is extremely competitively priced (believe it or not we are more interested in providing quality information to our readers) and is affordable to even the smallest of agents, especially during the initial launch period. If we are inundated we will put the prices up (we’d like to make a profit one day!) so please get in early to snap up an absolute bargain. To read testimonials from other advertisers please click here.

My email address is mark@property118.com

At Property118 we distribute Newsletters to over 170,000 subscribers (landlords and associated property professionals) and we also Search Engine Optimise every one of our articles. Additionally we are a Google News feed which means that our articles are indexed by the search engines and appear in Google News for the targeted keyword phrase within 15 minutes of publication. The combination of all of this makes us one of the UK’s most popular websites in the Private Rented Sector.

NOTE – we can not be held responsible for the business decisions taken by our readers and we encourage you to do your own due diligence prior to entering into any contractual relationships regarding to buy to let property related decisions or the ongoing management of your property investments.



Comments

11:19 AM, 27th June 2012
About 8 years ago

There are so many factors that affect market and rental value that you cannot just use post code, size and aesthetics. Even from a purely investment perspective there are so many factors that affect rental value, size and accessibility of property (no. of bedrooms being equal), internal and external decor, included furnishings/white goods, flexibility on pets, inclusion of some or all utilities, contract duration, target tenants to name a few.
Each investment opportunity has to be taken on it's individual merits and of course rental value is subjective and negotiable.
I have HMO properties and secure 100% occupancy with no void periods because my rent charges are fair. I see plenty of other nearby properties with higher advertised rents that are not fully occupied.


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