I was talking to someone who lives in one of
those Edwardian three bed semi detached houses in Norbiton, near the train
station. We got talking about the Norbiton property market and I found out some
interesting information, which I would like to share with you. Interestingly
though, of the 4,050 properties in Norbiton over 1,714 of them are owned (or
42.3%) compared to the Kingston average of 64.1%. That is because of the New
Cambridge estate with its percentage of council properties (1,097 to be
precise).Anyway, he is eager to purchase his first Buy to Let property and has noticed our previous articles, so was interested in getting to know the industry a little better. As he has lived in the Norbiton area for over 9 years and he felt comfortable investing around there as he knew it well. We started to discuss the property market in this area. Property values in Norbition have risen at a steady 6.2% over the last 12 months and with my local knowledge I was able to advise him that there are plenty of 3 bed semis here, ranging from £350,000 for a small 1920’s built property in the Porchester Road area up to the larger ones, that can be bought for around £750,000 in the Gloucester Road area.
The smaller ones rent for around £1400 to £1500, which offer a healthy yield of 4.8% per year, (the larger ones in the £600k/£700k region tend to attract lower yields of late 3%’s/very early 4%’s) especially since 1999, semis in Norbiton have on average risen by around 238% in value since 1999, which when you consider the Greater London average property value increase is only 132% over the same time frame, it is good news all round!
So with a reasonable yield and excellent capital growth, semis in Norbiton, especially 3 beds, could make a decent future investment. Whether you are a landlord of ours or not or someone thinking of investing in the rental market for the first time, drop by our offices in Kingston Hill for advice on where the bargains are in Kingston.
July 2014
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