Monday, 27 October 2014

Roper Avenue (Heanor) property market outperforms Smalley Village by 32%



 
I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money knowing the return they would get investing in the Bank. They have always lived Heanor and wanted to buy something in the town, or close by, as they know the area well. They were looking for advice as to what kind of property they should buy, but they particularly wanted it to be South of Heanor’s town centre.

Their budget was in the £200,000 to £220,000 region, so I initially looked at property in Smalley Village. The average value of a property in Smalley Village is £217,307.  An average property in Smalley Village rents for £841 per month, giving an average yield of 4.63%. They thought that yield was rather low so I then considered the Roper Avenue area of Heanor.  Semi detached houses are worth on average £102,200 here and rent for  around £523 per month, giving a much better yield of 6.14%, which is proportionally just over a third (or 36.2% to be precise) more than Smalley Village.

However, to judge a rental investment, you must consider the capital growth as well as the yield. Since 2002, the average Roper Avenue semi has risen by 79%, whilst properties in Smalley Village have risen by 112.1%. Ultimately, we found both areas to be a good investment depending on your own situation, but as you can see, Roper Avenue does offer better yields, but at the expense of better capital growth than Smalley Village offers.  

If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices Denby House Business Centre on Taylor Lane in Loscoe  for a chat or email me direct on jeremy.bullock@sprucetree.co.uk
 

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