The Thorplands property market outperforms the Chapel Brampton property market by 102%

I had a conversation with a landlord last week, who lives in Chapel Brampton, who took me up on the offer of an informal chat about the Northampton property market the other week after he read the ‘Northampton Property Blog’.  We got talking about investing in Northampton property and how different areas of the town performed again other areas. Investing in Northampton property is a balancing between capital growth and yield. On the one hand going for strong capital growth seems an obvious choice because of the potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties tend to be low meaning if you are taking a high percentage mortgage, the rent doesn’t pay the mortgage payments.

 

It became really interesting when we compared his area of Chapel Brampton against the Thorplands Estate, where he was brought up in the 1970’s. The average value of a property in Chapel Brampton is currently £323,500 and the average rent in the village is £872 per month. This would give our landlord a yield of 3.23% per year, very reasonable indeed. Until you consider property on the Thorplands Estate, which has an average value of £119,250 and lets, depending upon condition, for around £649 per month. This means the average yield achievable in the Thorplands estate is 6.53% per year, which is a 102% proportionally higher yield than that achieved in Chapel Brampton.

However, yields are not everything in property investment. Another is how the value of the property goes up over time. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term.  Since the year 2000, the average value of a property on the Thorplands Estate has risen by 142.1%  so, one would expect Chapel Brampton property values to risen more.

Quite the opposite, as average values have only risen by 134.3% since 2000 in Chapel Brampton. However, percentages don’t tell the whole story. Whilst an average homeowner, if they sold their property today in the Thorplands Estate would make around £70,000 gain since 2000, a home owner in Chapel Brampton would, on average, have made and impressive £185,500 gain in the same time frame.

Now I know there aren’t many landlords that would buy a large property in Chapel Brampton to rent out. It’s just that looking at the Northampton property market in more depth enables me to give you the best advice and opinion to help you find the best investment property. 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, please come and see us at our office in Wellingborough Road, Northampton.