Can you benefit from both capital gain and reasonable gross yield, in Guildford?

A landlord became ever more curious about the Guildford town centre Buy to Let market after reading our articles about various localities in Guildford, so decided to call to ask for my advice.

One particular property in Brodie Road, off Syndenham Road, a street that runs parallel with the High Street,  we looked at recently was a small 2 bedroom semi-detached property, purchased for £307,500 in 2013. The house was completely refurbished, with a new rear kitchen extension, to bring it up to a standard to suit today's modern lifestyle. It was sold again for £480,000 back in March, this year. It had therefore increased by 56%, in just two years. 

Brodie Road property price rises by 56% in just 2 years 

However, prices in the town rose by just 13.5% during the last two years, so it should have sold for just £349,412, if it’s price had kept inline with the town’s average house price growth.

In another example, of an impressive price rise, a one bedroom flat in the Rosetrees development off Warren Road, sold for £168,500 in the Autumn of 2013 and then resold a couple of month's ago for £245,000. This is a rather impressive rise of 45% which, once again was based around the property having received a makeover. This price also compared favourably with the 13.5% average price growth for Guildford town centre, over the last two years.

45% price increase for a flat in Rosetrees

In the case of Brodie Road the gross yield from renting it out today would be 4% suggesting that there could be better investments to be made in Guildford, if looking for a reasonable yield. However the flat at Rosetrees would deliver a reasonable 5.8% at today's rental valuation (less the monthly standing charge) so proves that a first time investor acquiring a flat for buy to let could enjoy a double whammy, with both a reasonable yield and a significant capital gain, even in Guildford where capital gain is more likely than a high gross yield.

Our passion lies firmly within the residential property market, so whether you are searching for a reasonable gross yield or capital gain, please talk to us at any point if you want to chat about investment opportunities in our diverse area.

Please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk for a chat about where to invest in the local area.