Bexleyheath or Erith? Different investment strategies.
Last week, one of our local landlords, who owns a small property portfolio, popped into our office on Bexley High Street for some advice as to where he should buy his next Buy to Let property. He already owns properties in Bexleyheath and Erith. In Bexleyheath, the average property price is around £332,500 and the average rent is around £1,360 per month. In Erith, the price of the average property is £255,630 and average rent is £1,080 per month. The annual yield in Bexleyheath is around 4.9% per year, and similarly, in Erith, he could achieve an annual yield of around 5.0%. We know the yields are very similar, so what should be considered next? I asked him what his long term goal was and he was very clear that he wanted to keep on building his portfolio of properties and buy a maximum number of units before retirement. I then asked what was more important to him, capital growth or rental yields? He explained that he had no plans to sell the properties but to have a healthy ...