Reading Expected Rental Yields In 2018
If you are considering investing in the property market in 2018, there are a number of things to consider. The demand for rental property ensures that the buy-to-let market is an appealing one for many landlords and investors but you need to find the right area, the right property, the right sort of tenant and of course, the right tenant. The Reading rental market offers many strong features and if you need help in making a decision about where to invest in Reading, Patrick Williams is on hand to help you out.
The RG30 postcode area covers locations like Tilehurst, Prospect Park, Purley-on-Thames, the western end of Reading (west) and Southcote. According to Zoopla figures as of January 2018, the average value of property in the RG30 postcode area stands at £304,082. In the past 12 months, the average price paid for property in the RG30 postcode area comes in at £291,894. By comparison, the average price paid for property in the RG1 postcode area, recognised as the centre of Reading stands at £306,172 in the past 12 months. This means that some buyers and investors will find better value for money looking at the RG30 area of Reading.
There are attractive rental yields to be found in Reading
Anyone looking to invest in Reading property with a view to the buy to let market should consider the expected rental yields from these areas. The expected rental yield from a one-bedroom property in the RG30 postcode area stands at 6.74% while for a two-bedroom property in the same area, 6.22% is the expected rental yield. With a three-bedroom property in the RG30 area, you can expect a rental yield of 4.9% and a four-bedroom property is tipped to provide a return of 4.93%. Any investor looking to a five-bedroom property to enter the buy to let market will find that there is a return of 4.4%.
There is a consensus amongst investment specialists that 4% is a good starting point for finding a suitable investment opportunity. Given that all the listed property types in RG30 offer a return above this level, with one and two-bedroom properties offering a return greater than 6%, it would be fair to suggest that this is a part of Reading that is worth considering for investment purposes.
The heart of Reading offers rental opportunities
The positive nature of the RG30 postcode area with respect to investment opportunities is reinforced by looking at the returns associated with the RG1 postcode area. In the heart of Reading, a one-bedroom property should provide a return of 5.07% while a two-bedroom property offers a return of 6.51%. There is a return of 4.8% on offer from a three-bedroom property while a four-bedroom property offers an expected return of 2.95%. With a five-bedroom property in the RG1 postcode area, a return of 3.03% is expected.
There are still attractive investment opportunities in the RG1 postcode area but given that the average price paid for property is lower in RG30 and many of the expected rental yields are larger, it is easy to see why investors would opt to invest in the RG30 property market.
Anyone looking to invest in property should review their options and ensure they make an informed decision. If you are looking for guidance or advice before entering the Reading buy-to-let market, get in touch with Patrick Williams and we will be happy to help.