Following on from my recent articles about the Ware region property market and in particular what had happened to the rents Ware & surrounding areas tenants have had to pay since the Credit Crunch here are some interesting numbers that I worked out this week.
In 2008 our average rental achieved for a two bedroom apartment in the area was £700 per calendar month and now in 2015 similar properties would achieve £875 pcm, that's an increase of 25% in rental income over 7 years. There has also been a significant increase in capital growth on these properties as figures show that the average price of a two bedroom apartment has increased by just over £45,000 in the same 7 year period, this is also an increase of around 25%.
Looking at the figures above, not only are the increases in rent and capital growth for the Ware region interesting but the best part for the investors is the increase in "Yield". Had you purchased the two bedroom apartment in 2008 for £157,000 and subsequently rented the property for £700 pcm you would have achieved a "Yield" of around 4.5%, not bad but when you consider that property is now achieving £875 pcm your "Yield" has now increased to 5.6%. So in summary, just by keeping hold of the asset you purchased in 2008, your monthly income has increased by 25%, your Yield has increased on the original investment and your capital has increased by nearly £6,500 per year!
If you would like to know more about the local property market please feel free to get in touch at our High Street office in Stanstead Abbotts and we will be more than pleased to give you some tips and advice.
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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”
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