Thursday, 4 June 2015

Do semi-detached properties on Highgate Drive, Shipley View make good Buy to Let Investments?



I was talking to someone who lives in a detached house on Highgate Drive, on the Shipley View in Ilkeston. He wants to purchase his first Buy to Let property and has noticed our local property articles, and was aware that we are happy to chat to landlords and so was interested in getting to know the industry a little bit more.

As he has lived in Highgate Drive for some time and he felt happy investing there as he knew it well, we started to discuss the property market in this area.
Firstly, we found that 20 semi-detached houses have sold in the Highgate Drive since the year 2000.
Property values in Ilkeston have risen on average by around 132% over the last 15 years but most semi-detached properties on the Highgate Drive have beaten that rise.

When we look back to 2000, a two bedroomed semi-detached property in Highgate Drive was bought for £50,000 and sold in 2014 for an impressive £125,000 – which equates to a growth of 150%!  Another semi-detached house on the same street sold for £40,000 and was purchased for around £100,000 in 2012.
With excellent capital growth you would expect yields to be comparatively lower, but most two bedroomed properties on the development can be picked up from £110,000 to £120,000 and could have achievable rents of £475 to £550 per month. This means annual yields can be around an attractive 6%!

This is backed up further when talking to one of our landladies who used to live on Mason Road in the same estate - she has bought several on that estate and has always had good returns, as each property is easy to rent and has only short empty periods between lets.
 
If you would like to talk to us about your potential investment, please come into our office, or let your fingers do the walking and pick up the telephone.

 

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