We have recently been having many conversations with landlords about the importance of having a balanced portfolio when buying and renting out property. The balance between buying properties that offer good monthly returns, in other words High Yield, but quite often offer a lower capital growth verses properties that do increase in value quicker but often offer a lower yield. A question that we are often asked is where should I buy to let.
One town that regularly performs well in yield and is improving on capital growth is Hoddesdon and equally as important is the high demand to live in the area by tenants, particularly those working in the town, therefore reducing the chances of vacant or void periods which is a large contributing factor in lowering yield.
Rental prices range from £550 pcm for a small studio apartment to £850 for a two bedroom although there are some lovely two and three bedroom houses that have recently been on the market for between £900 to £1200 pcm. However the opportunity to buy these properties and provide yourself with a strong yield is very good especially when you consider a three bedroom terraced house can be brought for less than £250,000 and provide a rental income of £1200 per calendar month.
If your are looking to buy a property to let with the intention of it covering itself whilst you enjoy the largest possible capital growth you may be better off looking at other market towns close by such as Ware and in particular the county town of Hertford but these will probably not provide such good yields as Hoddesdon in the short to medium term.
"Your local lettings experts, our advice is free but our knowledge is priceless"
I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”
Adrian Fallart - Director - Property File
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