Birches Head vs Gloweth

Last week, one of our landlords who lives in Truro, came into our office to discuss his portfolio – as he owns properties in both his local area of Gloweth, and Stoke on Trent, he wanted advice on which of these areas would provide the best investment for him, as he works towards his retirement plan.

 

Whilst everyone talks about the significant growth of property values in Cornwall in recent years, a comparison of property prices from 1995 between Stoke on Trent and Cornwall is quite revealing.

 

Whilst in this period the average property in Gloweth has increased by £65,130 when compared to an increase in Birches Head, Stoke on Trent of £30,906 over the same period, this represents as massive 52% growth in Stoke on Trent compared with a 36% in Gloweth.

 

A similar picture is seen when comparing rental returns.   An average semi-detached property in Gloweth will rent for £767 per calendar month, compared to £462 per calendar month in Stoke on Trent.   Due to the higher selling price in Cornwall, the rental yield is 4%, compared to 5% in Stoke on Trent.  Furthermore a canny investor could buy nearly 2 properties for the same cost as one in Cornwall in Stoke on Trent, thus taking their monthly income from £767 to £924 for a similar level of investment.

 

With recent property market surveys quoting Stoke on Trent as one of the cheapest areas in the country to invest, along with the massive regeneration of the city which is currently underway, there has never been a better time to invest in the Stoke on Trent and Newcastle under Lyme area. 

 

If you are considering a property investment and want evidence backed property advice from our experienced team, please contact us at Martin and Co.  We are currently marketing a number of investment portfolios and individual rental properties which could be a great starting point for your property investment plans.