Thursday, 21 May 2015
Property Bargains around Belper; Bargate, Kilburn and Heage
A local landlord became interested in the Belper’s Buy to Let market, in particular the growth in capital values some of which he had witnessed first hand, after reading our articles about various areas of Belper, so decided to call us and ask our advice.
Having had a look at some recent examples of high growth properties I found that a small two bedroom end-of-terrace property on Belper Road, Bargate, was bought for £80,000 in 2011. The same property sold for £140,000 in December last year, which is a rise of 75%! However, prices in the town during this same time period rose only by around 11%, so it should have sold for £90,000 if it kept up with the local average house price changes, so it looks like it needed work when originally bought in 2011 – and that work has paid off handsomely.
A two bedroom detached bungalow on Ryknield Road in Kilburn sold for £190,000 in 2013, and was sold again this year for £239,000. This is a rather impressive rise of 26%, especially considering, average prices in this time have risen by a much less remarkable 9% in the area.
One that also caught the eye was another two bedroom link-detached bungalow on Old Road in Heage sold for £125,000 in 2013, and was sold again this year for £168,000. This is an even more impressive rise of 35%!
Having a look at this one in a little more detail we can see that a program of refurbishment has taken place – just look at these before and after photographs:
And after the refurbishment:
Interestingly one thing the then owners did was to turn the property from a 3 bed to a 2 bed – and make way for a kitchen diner – rather than just a small kitchen – which is a much more modern, and appealing, way of living. Definitely a case of “less is more” here!
With rents for these types of bungalows in these areas achieving between £500 and £650 per month, these properties would now yield around 4-5%. I think in terms of a rental investment, there are better properties than bungalows, such as smaller two or three bedroom semis, but for owner occupation there are some bargains.
Our interest and passion lies firmly within the residential property market, so please feel free to talk to us at any point about our diverse area.