You can still buy good affordable two bedroom houses in Aylesbury

I had a lengthy and very interesting conversation with an existing landlord today. We have known each other for about 10 years and talk the same language. He has several properties locally which I helped him to source and now manage for him together with others outside of the Aylesbury area. We were discussing the merits of buying an Aylesbury property in the current climate where purchase prices are so strong and stock (choice) is limited.
He is looking to buy another two bedroom house and prefers to buy on the modern estates (Fairford Leys, Watermead etc.) which are out of reach presently as his current budget is limited to £230,000.
I suggested he look at cluster houses like those on the Willows but he was not keen, does not feel the returns are as good in that location or with that property type.
I suggested we did some research together at my desk.
Rightmove shows a selection of the mentioned cluster houses available right now (shown here) . Prices range from £220,000 to £230,000 so are in the right price range for him. But what about rental values, yield, capital growth?
Rent ranges are £850 to £900. So depending on the price you have to pay and the rent you achieve a yield of 4.4% to 4.9% gross is readily available...compares well with Aylesbury averages.
Capital growth? Well this is the icing on the cake! Go back 5 years to 2012 and these properties were selling for around £130,000...these unassuming ordinary properties have made their owners £100,000 in just 5 years, £20,000 per annum... that's more than £1500 each and every month!
We discussed the potential future market and what returns could be seen in the future. Rents are growing and there is increasing demand ahead of us...this government nor the next are likely to be brave enough to address the lack of housing adequately. So continued capital growth and rent increases will prevail.
My landlord booked two appointments to view before he left my office. I should have another two bedroom cluster house to rent in around two months time!

If you are thinking of investing for the first time or want to add to your portfolio I am always available for a chat. I talk to dozens of landlords every week so I get to hear who is making it work and how. ian@mortimersaylesbury.co.uk

Nala thinks she would make a great secretary.