Viola Avenue Outperforms the Stanwell Property Market by 64%

An interesting discussion with a local landlord who lives in Stanwell - we chatted about his buy to let property in Viola Avenue and how that particular property market was so different from properties in the rest of Stanwell where he lives.

We spoke about the two property markets, as it was a good place to start before moving on to consider the whole of Stanwell and Staines.  I did make comparisons between Stanwell and Viola Avenue and was surprised to find that the property market in the Viola Avenue area had outperformed the Stanwell property market by 64%!

The average price of a two bedroom town house on Viola Avenue is £231,800.  When you consider that the rents that are achieved here are on average £1,150 per month, this gives us a yield of 5.95% per year – so is the Viola Avenue area the best investment?  Well, in Stanwell, where the average value of a four bedroom detached house is £502,800 and the average rent for such a property is £1,513 per month, this gives a much lower yield of 3.61%.  This makes the yield/return in the Viola Avenue area proportionally 64% greater than property in Stanwell, so surely Viola Avenue is the best investment isn’t it?

However, this is a classic example of annual yield/return not being the only factor when choosing an investment property.  You should also consider how much the value of the property may go up in the long –term.  In the last ten years, property values have only risen on average by 61.5% in the Viola Avenue area, which is still very impressive considering we had the 2008 property crash.  However, average property values in Stanwell over the same ten year period have risen by approximately 89.3%.

So, if you are investing in the Staines and Stanwell property market, do you want capital value or do you want yield or a bit of both?  If you are landlord with a number of properties or someone who is thinking of becoming a buy to let landlord for the first time, please feel free to pop your head through the door of our offices on the High Street in Staines or email us on joy.cook@martinco.com or trevor.cook@martinco.com.