Monopoly in Falmouth - How Would You Play?

We had a discussion with a couple of local landlords about the property market in Falmouth, when the subject of risk against returns arose.

All landlords are different in the way they play the property game. Some land-lords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment you could buy property in the areas of Falmouth which are perceived as being more desirable, such as Goldenbank, where you may be able to achieve an annual yield of around 4%. If you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of maybe 6%. This level of risk can be typically taken with terraced houses around Falmouth. If you are after annual yields of 8% and over, you could take more of a risk with houses of multiple occupancy or properties in poorer areas of town which may attract tenants of a lower quality.

If you would like our opinion on what to buy or to talk letting property in general, feel free to come in to our office on Killigrew Street in Falmouth. We don’t sell houses but we will help you find a good buy-to-let property.

Annabel Leach

annabel.leach@belvoirlettings.com

01326 210304

www.belvoirlettings.com/falmouth

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Longfield vs Bosmeor, Falmouth

We were talking to a couple last week, who are considering becoming landlords for the first time and they were looking for advice as to whether a property on Longfield or the Bosmeor area of Falmouth would make a better Buy-to-Let investment.  They were interested in which would offer a better return/yield, and whilst properties on both streets can let and sell well, we wanted to do a bit more research to help them with their decision.

The average value of a 3 bed semi-detached property on Longfield is around £170,000; while on Bosmeor Close it is 32% more, at around £225,000. To better understand the investment opportunities available, we considered the rents of semi-detached properties in these streets. The average rent likely to be achieved for a 3 bed semi on Longfield is in the region of £775 pcm, giving an average yield/return of approx 5.47%. On Bosmeor Close the average rent is slightly higher, at around £835 pcm, with a corresponding yield/return of 4.46%.

However, one must also consider capital growth and how the value could change over time. In 2000, a semi-detached house on Longfield would have cost approximately £68,500 and on Bosmeor Close the average value was £76,950. This shows that the average property value on Longfield has risen by 148% since 2000, and on Bosmeor Close has risen by 192%.

Ultimately, we found both streets to be good investments. So we advised them that if they wanted a higher short term yield, then the Longfield property would be a better bet but for long-term capital growth then the Bosmeor Close property would be the best option whilst also still offering a good rental yield.

If you would like our opinion on what to buy or talk letting property in general, feel free to pop in to our office on Killigrew Street. We don’t sell houses but we can help you find a good buy-to-let property.

www.belvoirlettings.com/falmouth

Tel: 01326 210304

email: falmouth@belvoirlettings.com