The WA4 postcode contains over 1,900 flats. This only accounts for 9.4% of the housing stock in the area, while the Cheshire average is closer to 17%. The average price of a one-bedroom or two-bedroom flat in WA4 is around £133,000, which is nearly 4.5% higher than a year ago. However, if we compare figures from only Spring 2022, the average price of these flats was £140,000, which has decreased by nearly 5% to today's value. Is the property market dropping or are flats loosing their value?
Let's take a closer look at the investment potential for one-bedroom flats.
A one-bedroom flat in the Ashfield Gardens development can be purchased for £85,000. If a landlord puts down around £21,000 and borrows the rest, they could receive £670 per month in rent. This is a true statistic from one of my own landlords who purchased a comparable valued investment and received a higher rent.
Even after deducting the service charge, the yield could be around 8% per year. However, keep in mind that each landlord's tax and interest rates are unique, so thoroughly research your investment before fully committing. If you're thinking about buying a buy-to-let property, don't hesitate to call or message me to find out how much you could profit from the opportunity.
Finally, don't forget about the potential increase in the property's capital value. I was looking at the apartments on Elphins Drive close to Stockton Heath and discovered that they sold for around £60,000 in 2018. Since then these one-bedroom apartments have been listed for around £125,000, which is more than double the value just four years ago. As a result, this suggests that future growth might well be possible.
You truly cant knock 1 bedroom flats for your next investment! As a landlord, you are able to put down a reasonable deposit and be receiving great rent per month, if you use Grace Estates of course, the home of powering landlords profits!
If you would like some advice about what could make a good investment, please email grace@graceestates.co.uk