The letting market in Swansea Bay is booming, says Laura Thomas, who runs the local office of specialist agency Red Key Property Services. The challenge for prospective investors is knowing where to look for the best return on their investment…
The development of Swansea Marina has given those of us working in property locally a real boost over the last few years: creating such a fabulous place to live has brought new people to the area, and a host of attractive properties to sell and (especially for agencies like mine!) to let.
But sometimes the “Marina market”, which is very different from the rest of Swansea Bay, has overshadowed the very active letting market in other parts of Swansea… and, indeed, neighbouring Port Talbot and Neath. When someone comes to us and asks for advice on investing in a buy-to-let property we will show them what’s on offer at the Marina – and encourage them to take a look too at the value available in the less fashionable locations.
Swansea letting market set to grow
The fact is, there are a lot of people looking to rent rather than buy – either due to the challenges of getting into the property market or because of the greater flexibility that renting offers. And many will want as much space as possible for their budget, or need to live close to where they work.
Add this to the indisputable fact that more and more people would love to live in this special part of the world (and who wouldn’t!) then there’s no question that the local letting market looks set to continue growing: our office has seen a terrific growth rate since we opened our doors in November, with new landlords and tenants being added to our books every day.
So what can you get for your money?
A two-bedroom apartment in SA1, offering around 600 sq ft, will set you back between £700 and £750 a month. An “up together” two bedroom house or apartment in (Port Tennant, Swansea) will be closer to £550; in Neath expect to pay £475 and in Port Talbot £450
The upside for a potential investor is that getting into the market will mean a much lower outlay: those same properties will set you back £150,000 in the Marina, £90,000 in Swansea, £85,000 in Neath and just £75,000 in Port Talbot.
That opens up the market for someone with a much smaller investment pot, while the ROI (return on investment) will typically be between 5 and 6 percent once costs are taken into account: a handsome alternative to the miserly rates on offer from the banks and building societies, not forgetting the added bonus of the real prospect of capital growth.
What’s more, with a good letting agent on your side, much of the work is done for you: we will help you identify potential properties, then manage the whole letting process.
If you’d like to know where the smart money is going in Swansea, just give me a shout!
Lighthouse Park, St Brides.
This well maintained and beautifully presented park home nestled in the quiet and much sought...
Monnow Way, Newport
RED KEY present, new to the market an ideal first time buy and investors alike. No onward chain...
Chepstow Road, Newport
The spacious family home is situated in an ideal location providing easy access to the M4...