We were talking to a couple recently, who are considering entering the buy-to-let market and they were looking for advice as to whether a property in Polmennor Road or Pengarth Rise in Falmouth would make a better investment. They were interested in 3 bed family homes and whilst decent properties in both streets let 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 Polmennor Road is around £225,000; whilst in Pengarth Rise it is 11% less, at around £200,000.
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 on Polmennor Road is in the region of £850 pcm, giving an average yield/return of c.4.5%. On Pengarth Rise the average rent is slightly lower, at around £795 pcm, with a similar corresponding yield/return of c.4.8%.
However, it is also good to consider capital growth and how the value could change over time. In 2006, a semi-detached house on Polmennor Road would have cost approximately £185,000 and on Pengarth Rise the average value was £176,000. This shows that the average property value on Polmennor Road has risen by 22% since 2006, and on Pengarth Rise has risen by 14%.
Ultimately, we found both streets to be good buy-to-let investment areas with Polmennor Road showing a stronger capital growth opportunity.
Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let investment in Falmouth, Penryn, Helston and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!
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