Factor 5 - applied to terraced properties in Guildford

No doubt many of my readers will now be on holiday, or have just returned, so will have enjoyed some sunshine and indeed have used sunscreen. This explains the tenuous link used for the following article.

By what factor have Guildford property prices increased, in 20 years?

Many investors ask me “My funds are limited to purchasing a terraced house so which should I buy, in Guildford?” Would a 2 or 3 bed terraced property to rent out to tenants, be a better investment? The first question I ask them is what are they looking for from the investment - capital growth in the property or a great yield? Answering this question will help you to figure out which properties you should buy...

The average asking price of a 2 bed terraced house in Guildford is £314,950 today compared to £349,950 for a 3 bed semi. The 2 bed terraced house achieves an average rental price of £1195 per month compared to £1425 per month for a two bed terraced.

2 bedroom terraced houses in Cumberland Avenue

3 bedroom terraced houses in Cumberland Avenue

That’s a yield of 4.6% for the 2 bed against 4.9% for the 3 bed. So surely, the 3 bed terraced is the slightly better bet? Well it does offer a slightly better rate of return and should be easier to rent out because it will offer a little more space, ideal for a family, or for those requiring a study, or a room where they can enjoy a hobby.

If one is looking for capital growth then the asking price for terraced properties in Guildford has increased by more than 5 times over the last 20 years which compares favourably with semi detached properties. These have increased by little more than 4 times; and detached properties have multiplied by a lowly 3.5 times!

This leads onto a hypothetical question - "When is the best time to invest in property?"  In this instance the answer would be a rhetorical "20 year's ago!" Who would have believed in 1995 that asking prices for property in 20 year's time would have had the potential to increase by a factor of 5!

If you would like to have a chat about property prices in Guildford or a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207 or email richard@guildfordpropertyblog.co.uk