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Kingstanding’s property market outperforms Four Oaks’ by 44%

02/02/2015

I met a couple at a property auction a couple of months ago and they recently contacted me to discuss investing in property for Buy to Let in Birmingham…

 

One of the most important considerations you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. Four Oaks is a residential area, situated in Sutton Coldfield. It is one of the most sought after places to live in Birmingham. The average three bedroom semi-detached house sells at around £255,000 and rents are roughly £950 per calendar month.

With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses in Kingstanding have outperformed those in Four Oaks. This is because a three bedroom semi-detached house in Kingstanding can be bought for around £110,000 and the achievable rents can be around £600 per calendar month.

 

The yield which could be achieved from a three bedroom in Kingstanding is around 6.5% per year. When we compare this to the possible 4.5% in Four Oaks, it is 44% higher in Kingstanding.

 

However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bedroom semi-detached house in Kingstanding in 2003 was £91,450 which has since risen by a modest 20% in the last 12 years. A three bedroom semi-detached house in Four Oaks in 2003 was £182,100, meaning the value has increased by a more impressive 40% in the same 12 years.

 

What are your property investment goals? Are you looking for yield or capital growth?

 

If you would like more information on investing in the North Birmingham and surrounding areas’ property market, please call me or visit our offices.



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