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
01326 210304
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