Lake Drive, Hamworthy property market outperforms Sandbank’s Shore Road’s by nearly 40%!
Yesterday, someone from Hamworthy, on behalf of someone else, who might have been on behalf of someone else! (Clearly nervous about talking to Estate Agents, incase they have to commit to anything, or admit anything!) wanted to know about potentially investing in property in the area.
Either for resale, or buy to let. I am interested in the property market, and did a little bit of research, I thought I would share with you.
As we all know, Hamworthy isn’t Sandbanks. No matter how many nice pictures of sea views there are associated with the property.
Location, Location, Location.
One of the most important considerations you will make before investing is the balance between annual return/yield and the annual value increase/capital growth.
Shore Road, in Sandbanks, has the fourth highest land value in the world! Sandbanks as an area, has 14.5% of new builds, which compares to a national average of 10.2%. Most houses are owner occupied, and can hold prestige over taste!
It’s so sought after, that houses and apartments can now be rented out for a one night party. Lavish 2nd or 3rd homes being rented for just one night!
The average three bedroom semi-detached house sells on Shore Road for £1,159,875 and rents are on average £2,009 per calendar month.
With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Lake Drive, Hamworthy, past Daniel’s Fish and Chips (Great fish and chips by the way) have outperformed those on Shore Road.
This is because a three bedroom semi-detached house on Lake Drive can be bought for around £585,279 and the average rents are currently £1500 per calendar month.
The yield which could be achieved from a 3 bed property on Lake Drive is around 3.07% per year. When we compare this to the possible 2% on Shore Road, it is nearly 34% higher on Lake Drive.
However, we must remember that yield is not the sole consideration when investing in Buy to Let properties.
A three bedroom semi-detached house on Shore Road in 2000 was £385,000, meaning the value has increased by an impressive 200% in the last 14 years or so.
However, the average value of a three bedroom semi-detached house on Lake Drive in 2000 was £171,750, which has since risen by 240% in the last 14 years! Now that is impressive!