I have recently been speaking with a number of Crawley landlords about the importance of a balanced portfolio of rental property. Mortgage lenders will always concentrate on
the monthly returns and aim for high yields but with property prices in Sussex
increasing faster than the national average landlords must not forget capital
growth as the reason for their investment.
A 2 bedroom house we recently let in Golding Close, Maidenbower was
rented at £1100 per month. The house is
currently valued at £285,000 which would only give a yield of 4.6% if purchased
and let out today. However the current landlords
bought the property in 2010 for £221,000 and if the current valuation is
correct they have enjoyed a capital growth of 30%, outstripping any return from
bank or building society.
Whether you
are a first time investor or experienced landlord and considering your next buy
to let purchase contact me in our Crawley office for advice on the local market.
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