As his rental property has always let consistently over the last decade, he is contemplating taking advantage of the recent change in pension rules, and investing in a second property within the development. He was keen to establish whether his existing property has attracted any significant capital growth, and also understand what yield could be achievable from a new purchase. I did some research yesterday and this is what we found...
Having trawled through the sold prices, we noticed that one particular two bedroom apartment has changed hands three times over the course of the last ten years. Originally purchased 'off plan' in 2005 for £204,250, the apartment was sold in May 2007 (just before the recession) at £230,000. The same property sold again in April 2013 at £244,000. This reflects a healthy capital growth of nearly 19.5% over the course of 8 years.
Looking at the broader picture, statistics illustrate that in the last 5 years alone, property prices in St Agnes Place (PO19 7TU) have, on average, increased by £36,009 (or 14.07%). Pretty impressive stuff.
In terms of 'let-ability', St Agnes Place properties are always in demand all year round, due to the proximity to the city centre, train station, and St Richards hospital. Many of the units also boast off road parking, which is a rarity so close to the heart of the city. However, as with all leasehold apartments, we do need to factorise service charges, ground rents etc into our calculations, as these regular expenses of course will impact the final net yield figure.
Two bedroom apartments in St Agnes Place have been known to achieve as much as £995pcm. However, let's take a more conservative figure of £950pcm, and an average sale price of £247,210 (in PO19 7TU). Based on these numbers a landlord can expect to receive a healthy gross yield of 4.6%.
Couple this rental return with year-on-year capital growth, we concluded that the development certainly lends itself as an attractive buy-to-let hotspot!
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