Friday 27 February 2015

Longmead Estate Property market outperforms the Nonsuch Estate housing market by 92%

Last week I had an interesting conversation with a local landlord who lives on the Nonsuch Estate in Ewell. He called in to discuss a property he was looking to purchase in Epsom. We discussed the different areas in Epsom and Ewell and how they have performed. Interestingly, when we compared one of his Epsom buy to let properties (an ex local authority property in the Longmead Estate) with the Nonsuch Estate where he lived, he was quite surprised to find that the property market in the Longmead Estate area had outperformed the Nonsuch Estate development by 92%!

The average price of a 2 bed apartment on the Longmead Estate is £186,700. When you consider the rents that are achieved in the Longmead Estate are an average of £1,100 pm, this gives us a yield of 7.07% per year. So is the Longmead Estate the best investment? Well, in the Nonsuch Estate development, where the the average value of a bay fronted detached property is £803,500 and the average rent for such a property is £2,467 pm, this only gives a yield of 3.68% per year. This makes the yield/ annual return on the Longmead Estate development 92% proportionally more than the yield that can be achieved on property in Nonsuch Estate, so surely it is the best investment, isn’t it?

However, this is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much the value of the property goes up in the long term. In the last 15 years, property values have risen on average by 121.9% in the Longmead Estate (rising from £84,100 to the £186,700 mentioned above), which is very impressive considering there was a property crash in 2008. However, average property values on the Nonsuch Estate development have risen on average by an impressive 242% in the same time frame.

Now of course, I have shown the extremes of the Epsom and Ewell property market here. High annual yielding property, such as those on the Longmead Estate, do attract a certain type of tenant which can be positive and long term, but also negative to the investment return for capital growth. Every landlord is different and requires different returns. Therefore, if you are investing in Ewell and Epsom property, do you want capital asset growth or annual rental yield or a bit of both? If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the time throughout 2015, please come and see me at our office on Upper High Street, Epsom or keep checking back here.

13 comments

  1. Thanks for another wonderful post. Where else could anybody get that type of info in such an ideal way of writing? estate agent near me

    ReplyDelete
  2. It was extremely all around composed and straightforward. Not at all like different online journals I have perused which are truly not that good.Thanks a lot https://www.valsqld.com.au/

    ReplyDelete
  3. Truly an extraordinary expansion. I have perused this brilliant post. A debt of gratitude is in order for sharing data about it. I truly like that. Much obliged so parcel for your assemble. Buy to Let Property Tax Advice London

    ReplyDelete
  4. It is an awesome site.. The Design looks great.. Continue working like that!. Property Tax Accountant

    ReplyDelete
  5. Fascinating and stunning how your post is! It Is Useful and accommodating for me That I like it all that much, and I am anticipating Hearing from your next.. Property Tax Advice

    ReplyDelete
  6. I gotta most loved this site it appears to be exceptionally useful . Property Tax Advisors

    ReplyDelete
  7. Extraordinary Article it its truly enlightening and creative update us as often as possible with new upgrades. its was truly important. much obliged. Tax on Buy to Let Property

    ReplyDelete
  8. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me. Contractor

    ReplyDelete
  9. I am all that much satisfied with the substance you have specified. I needed to thank you for this awesome article.  gutter repair raleigh nc

    ReplyDelete
  10. Your work here on this blog has been top notch from day 1. You've been continously providing amazing articles for us all to read and I just hope that you keep it going on in the future as well. Cheers! Real Estate upkeep

    ReplyDelete
  11. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: New Rain Gutters

    ReplyDelete
  12. I'm impressed, I must say. Very rarely do I come across a blog thats both informative and entertaining, and let me tell you, you ve hit the nail on the head. Your blog is important.. JC Manhattan Locksmiths

    ReplyDelete
  13. Much obliged to you for peopling get the data they require. Extraordinary stuff of course. Keep up the colossal work!!!  Gutter Repair Company

    ReplyDelete