Branston Houses or Bungalows – which is the best for Investment?

Last week, a couple from the Branston area of Burton came in to discuss with me, them potentially investing in the Burton property market for Buy to Let for the first time. As my regular readers will note, one of the most important considerations you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. However, another consideration is location and the type of property you could buy. They live in that nice modern estate built around the turn of the Millennium in Branston, just after the Doctors surgery, and close to the Trent

With this in mind, they thought they might buy one in same area, as they knew it well. It’s just they couldn't decide what type of property to buy. One option would be a three bed detached house in Branston. I recently saw a very nice one, with an integral single garage sell for the late £170,000’s. Considering it sold for £92,000 when it was built a little over 10 years ago, that’s a rise of 93% in value. Current rents achieved for such a pretty house would be in the order of £700 to £750 per month, giving an annual yield of up to 5.1%, When you consider property values have risen by around 5.1% in Burton in the last 12 months, that’s not a bad return in anyone’s books.

However, I suggested something a little different, a bungalow in the Branston area? Semi detached bungalows can be purchased for £110,000 to £130,000 and can achieve rents in the £550 to £600 per month area, again totally dependent on condition, presentation and layout. The initial cost of buying would be much lower and the yields slightly higher at 5.5% to 5.8% per year. It goes to show you need to think differently about this housing market in Burton. If you would like any advice on choosing properties, come and see us at our office on the High Street.

You can email me at davidm@professionalproperties.co.uk. Our website can be found at www.pplets.co.uk