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Properties in the Falcon Lodge estate outperform the Little Aston housing market by 59%!!

10/11/2014

I received an email over the weekend, from a gentleman who lives in Little Aston, near to the golf club. He is considering investing in some properties not too far away in Falcon Lodge in Sutton Coldfield; although he was also curious as to whether investing in his own area would be an option.

 

Falcon Lodge which is an estate on the east side of Sutton Coldfield, has a mixed tenure of housing stock, including privately owned properties and social housing. The average price of a property on Falcon Lodge Crescent is £134,000. When you consider that rents achieved in Falcon Lodge are on average £600 per month, this gives us a yield of 5.4% per year.

 

So is Falcon Lodge a good place to invest?

 

Well, in Little Aston, an affluent area also in Sutton Coldfield, the average price of a property on Little Aston Lane is £441,000 and the average rent is £1,249 per month. This offers a yield of 3.4%, which is 59% lower in comparison to Falcon Lodge!

 

This, however is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much value of the property goes up in the long term. In the last 10 years property values have only risen by 16% in the Falcon Lodge area.

However, average property values in Little Aston have risen on average by an impressive 92% in the same time frame.

 

So, if you are thinking of investing in Sutton Coldfield property, do you want capital value or yield?

 

If you would like any advice on choosing properties, come and see me at out office on Kingstanding Rd in Birmingham.

 

Chow for now!

 

Melissa

 



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