Property investments can provide great returns in the long run, especially if you purchase in an area where there is good demand and limited supply. This situation can drive prices up and result in fantastic returns.
When deciding on what area to invest in there are several things to look at. The first thing that many investors look at is the yield. This is important because it shows how much they will make on the property when comparing the rental income to the value. A healthy yield is important to success.
This is not the only thing that investors should look at though, especially if they are thinking long term. With this in mind they should be focusing on capital gains. This is the amount that the property increases in value as a percentage.
It is very possible to find properties that offer wonderful capital gains without generating the biggest yields. There are simply some areas where there is less demand for rentals but very high demands from buyers. This can result in good returns from selling a property even if the rental income is not as high as you would like.
According to data from LendInvest’s quarterly buy to let index Enfield is enjoying the largest capital gains. The Borough enjoyed a gain of 17.36% due to its incredible popularity amongst buyers and investors. This will have provided fantastic rewards to property owners in the area.
Further rises in values are expected for Enfield as the popularity of the area continues. This could drive capital gains up even further and make investing in properties in the Borough even more attractive.
For those investors looking to hold on to properties for longer before selling we can offer a fantastic guaranteed rent service in Enfield. With this you can have us handle the letting and management and enjoy a stable set rental income each month. At Finefair we specialise in this kind of service and strive to provide the best possible value to our clients.
If you have any questions for us please get in touch.