When it comes to investing in an area, there are a number of things that you need to consider. You want to make sure that you know the area well enough to make recommendations and understand what sort of tenants you are likely to deal with. If you want to be a hands on landlord, you will want to make sure that you live local enough where you can be present to provide support and make changes if you have to. If you have an interest in property in East or West Meon, we can help you carry out research on the area.
When it comes to making the best decision about property investment for buy to let though, you need to know the figures. You may feel as though you know East and West Meon in Hampshire quite well, but you need to make sure that you understand the sums and you are comfortable with property prices and yields from buying in this area.
As of October 2017, the average value of property in the GU32 postcode stands at £480,815 while the average price paid for property in this part of the country in the past 12 months stands at £429,745. In the past six months, the average price paid for GU32 property stands at £413,798 and in the past three months, the average price paid for property here stands at £412,500.
Focus on the big picture with property
Some people may have concerns about the fall in prices over this period but this isn’t too much to get worked up about. When looking at property prices over a short period of time, one or two sales can have a big impact on the average, so you may not get an accurate measure of what is happening in the market by focusing on a short time period. It would be fair to say that while some people will raise concerns about these most recent figures, it isn’t something to get overly worked up about.
One handy barometer that many people consider in a property market is the expected rental yield. If you are looking to buy to let in East and West Meon, the expected rental yield for the GU32 postcode area is important. You will find that a one bedroom property provides a return of 5.3% while there is an expected rental yield of 4.27% for a two bedroom property. There is a 2.94% return from a three bedroom property, a 4.02% return from a four bedroom property and there is a 2.9% return from a five bedroom property.
There are attractive returns to find in East and West Meon
Given that many investment specialists suggest that a return of more than 4% is worth considering, this would suggest that a one, two or even a four bedroom property in the GU32 postcode area would be worth considering as an investment. There are clearly many strong reasons to buy property in this part of Hampshire but if you are looking for financial confirmation, and you should be, these figures will put your mind at ease about the East and West Meon buy to let market.
If you would like to learn more about the East and West Meon markets, get in touch with Williams of Petersfield and we will be more than happy to help.