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STIRCHLEY OR BEARWOOD- WHICH IS THE BETTER INVESTMENT AREA?

STIRCHLEY OR BEARWOOD- WHICH IS THE BETTER INVESTMENT AREA?

We speak to many investors who are unsure about where to buy their buy to let property. Two of the prime areas for investment at the moment are Stirchley and Bearwood so we thought we would see how they have both been performing in terms of property values.

The average property price in Stirchley at the moment is £148,843 and in the last 6 months’ average prices have dropped by 0.07%. In Bearwood the average property price is £148,305 and prices have risen by 2.52% in the last 6 months. Does that mean Bearwood is the better area to invest?

Not necessarily.

In the last 5 years house prices in Stirchley have risen by 20.11% compared to 17.56% in Bearwood. This means that in the last 5 years property values have increased at a 15% quicker rate in Stirchley compared to Bearwood. If you are concentrating on capital gain then it would seem Stirchley is the better bet.

But of course then there is the question of yield. Prime investment properties in Bearwood (2-3 bedroom terraced houses) repeatedly achieve yields of 7-8% compared to Stirchley (again the prime properties are 2-3 bedroom terraces) which usually achieves around 5-6%.

Another point to consider is the type of tenants both areas generally attract. Stirchley will normally attract professional couples in good careers like education, NHS or engineering. Bearwood commonly attracts couples or small families where either one or both adults will be skilled labourers or often factory workers. The job security with the latter is therefore often not as safe.

In conclusion- every landlord will have their own preferences and needs. If you are looking for a safe investment with the best capital gain then Stirchley is probably the best area. If you are looking for high yields and cheaper purchase prices then Bearwood may well suit you better.

If you are looking to dip your toe in the buy to let market and would like some advice, then please contact Laura Fiddes-Baron on 0121 445 7410 or laura@oulsnamlettings.net

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