Well it depends why you want to invest? Is it for yourself to live in? Is for investment? For buy to let? Everyone is different, but as I was chatting to a landlord from Stoneleigh, who popped his head through our door on Regent Grove in the Holly Walk area
Both towns are similar in size and, taking into account the surrounding villages, have similar average property values. The average property value in Coventry is £162,100 and in Leamington Spa is £264,500, whilst the average rents are at £866 per month in Coventry and £1,038 per month in Leamington Spa.
This gives Coventry an annual yield / return of 6.4% per year and Leamington Spa 4.7% per year. So surely Coventry is the better better bet if you were buying to rent it out?
This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider.
Over the last five years, property values in Coventry have increased by 13.9% but by an impressive 20.1 % in Leamington Spa.
This is great for those that have already bought a property in Leamington Spa in the last 5 to 10 years. However, its even more interesting to note that even though prices have indeed risen by over 20% in the last 5 years, it hasn't been in a straight line. In fact, on average, even though prices are up by 7.6% since last Spring (2013), they did in fact peak in the Autumn 2013 and in the last 6 month's have dropped slightly by 0.5% .. maybe a time to buy another?
It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office
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