Thursday, 23 March 2017

Blimey! - Aylesbury Property Values Rise by £50.27 a day

Investing in Aylesbury buy to let property is different from investing in the stock market or depositing your hard-earned cash in the Building Society. When you invest your money in the Building Society, this is considered by many as the safe option but the returns you can achieve are awfully low (the best 2-year bond rate from Nationwide is a whopping 0.75% a year!). Another investment is the Stock Market, which can give good returns. Most people invest in stock market funds, making the investment quite hands off and one always has the feeling of not being in control.

However, with buy to let, things can be more hands on. One of the things many landlords like is the tactile nature of property - the fact that you can touch the bricks and mortar. It is this factor that attracts many of Aylesbury’s landlords – they are making their own decisions rather than entrusting them to city whizz kids in Canary Wharf playing roulette with their savings.
I always say investing in property is a long-term game. When you invest in the property market, you can earn from your investment in two ways. A property increases in value over time, this is known as 'capital growth'. Capital growth, also known as capital appreciation, has been strong in recent times in Aylesbury, but the value of property does go up as well as down just like shares do but the initial purchase price rarely decreases.  Rental income is what the tenant pays you - hopefully this will also grow over time. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return. So, over the last 5 years, an average Aylesbury property has risen by £91,750 (equivalent to £50.27 a day), taking it to a current average value of £364,200. Yields range from 3% a year (with 4% to 5% being a sensible average yield) and can reach double digits’ percentages (although to achieve those sorts of returns, the risks are higher).
This demonstrates how the Aylesbury property market has not only provided very strong returns for the average investor over the last five years but, how it has permitted a group of motivated buy to let Aylesbury landlords and investors increase their wealth and/or income.
As my article mentioned a few weeks ago, more and more Aylesbury people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to grow. If you want to know what (and what would not) make a good buy to let property in Aylesbury, then give me a call or get in touch 01296 398555