Erdington outperforms Sutton Coldfield by 46%

Erdington outperforms Sutton Coldfield by 46% A landlord with a small property portfolio came into our office on the Birmingham Road, Sutton Coldfield last week. He lives in Streetly, and has properties in both Sutton Coldfield and Erdington. He wanted to ask our opinion on where he should his next Buy to Let property. Looking at Sutton Coldfield, the average property price can be an impressive £268,723 and the average rent is equally high at £781 per month. In Erdington, an average property is £128,234 and the average rent is only £541 per month. The annual yield in Sutton Coldfield could be only 3.5% per year, compared to Erdington where he could achieve an annual yield of nearer 5.1%. It made me consider two other towns close by, Great Barr and Water Orton. In Great Barr, I was surprised to find property values are much higher than in Erdington, with an average property price of £142,207. They have an average rent of £595 per month, which could achieve a yield of 5.0%. The average price of a property in Water Orton is £201,340, with rents of around £464 per month. This could achieve a yield of 2.8% per year. This is odd in terms of averages, because the properties I have let in Water Orton have an average of £625 per month is more to what you would expect at 3.7% annual yield. It goes to show Erdington can be a good area for an investment property, but it is a decision that shouldn't be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas of Erdington can achieve yields of 5.5% to 7.5% per year.

Priced right and decorated to a reasonable standard properties in any of the above areas are quick to rent. If you want to know our thoughts on property in Erdington, come into our office on the Birmingham Road, Sutton Coldfield or call 0121 321 6090, email suttoncoldfield@martinco.com

Coles Lane, Sutton Coldfield vs Riland Avenue, Sutton Coldfield

Coles Lane, Sutton Coldfield vs Riland Avenue, Sutton Coldfield I was talking to a couple last week, who are considering becoming landlords for the first time and they were looking for advice as to whether a property on Coles Lane, Sutton Coldfield or Riland Avenue, Sutton Coldfield would make a better Buy to Let investment. They were interested in which would offer a better return/yield, and whilst properties on both streets can let and sell well, I wanted to do a bit more research to help them with their decision.

Over the last three years, the average value of a property on Riland Avenue has been around £140,000; while on Coles Lane it was nearly 17% more, at around £164,000. To better understand the investment opportunities available, we considered the rents over the same three year period. The average rent achieved on Coles Lane was in the region of £636 pcm, giving an average yield/return of approx 4.7%. On Riland Avenue the average rent was slightly lower, at around £540 pcm, with a corresponding yield/return of 4.6%. However, one must also consider capital growth and how the value could change over time. In 2000, a semi detached house on Coles Lane would have cost approximately £83,000 and on Riland Avenue the average terrace value was £64,000. This shows that the average property value on Coleshill has risen by 97.6% since 2000, and on Riland Avenue has risen by 118.75%. Ultimately, we found both streets to be equally good investments, but as you can see Coles Lane has a slightly better yield, but Riland Avenue has higher captial growth, which we would not have identified without that extra investigation. Realistically, however, it depends on the best available property to buy on the day. If you are a landlord, new or old, feel free to visit Andrew Clinton (Branch Manager) in our office on the Birmingham Road to ask his opinion on which property investment is best for you.

Welcome

Welcome to the Sutton Coldfield Property Blog. This is narrative on the property market within Sutton Coldfield and surrounding areas (such as Erdington, Great Barr and Coleshill). Each post will provide you with an insight into the details of the current property market within the local area. I will try and answer your questions on the specifics of the property market locally. The Blog is designed to help you make the right purchasing choices for your future investment or home. email me on andrew.clinton@martinco.com or call me 0121 3216090 to discuss more.