A landlord with a small property portfolio came into our office in Regent Centre last week. He lives between Gosforth and Jesmond, on Dene View, just off Matthew Bank. He has properties in both towns and wanted our opinion on where his next buy-to-let property should be.
Looking at Jesmond, the average value of a property is an impressive £270,700 with an equally impressive average rent of £990 per month. In Gosforth, the average value of a property is actually lower at £247,950 but the average rent is a whopping £1,160 per month. Based on these figures, the annual yield in Jesmond is 4.3%, compared to Gosforth where he could achieve an annual yield of nearer 5.6%.
This made me consider other suburbs close by such as Longbenton and Kingston Park. Whilst it was no surprise to see that the average value of a property in Longbenton was lower at £144,000 it was interesting to see that the average rental was £675 per month, giving a yield of 5.5%. In Kingston Park, the average value of a prop
It just goes to show our suburb of Gosforth 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 Gosforth can achieve yields of 5.6% to 7.5% per year.
If you want to know our thoughts on property in Gosforth, pop into our office in Regent Centre for a coffee and a chat.