Thursday, 2 July 2015

Beauvale Drive, Cotmanhay’s property market outperforms Mapperley Lane, West Hallam’s by 120%


 

Last week, a couple from the West Hallam area came to discuss potentially investing in property for Buy to Let. One of the most important considerations you will make before investing is the balance between annual return/yield and the annual value increase/capital growth. Mapperley Lane in West Hallam is a lovely semi-rural spot on the edge of the village. West Hallam itself is a sought after place to live on the Derby side of Ilkeston. The average three bedroom semi-detached house currently sells at around £180,000 and rents are roughly £600 or a little more per calendar month.

With this in mind, it was a surprise to find that similar sized three bedroom semi-detached houses on Beauvale Drive, in Cotmanhay in Ilkeston, have outperformed those Mapperley Lane, West Hallam.

 This is because a three bedroom semi-detached house on Beauvale Drive  can be bought for around £75,000 and the achievable rents can be around £550 per calendar month

The yield which could be achieved from property on Beauvale Drive is around 8.8% per year. When we compare this to the possible 4% on Mapperley Lane, it is 120% higher on Beauvale Drive.

However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a three bedroom semi-detached house on Beauvale Drive in 1997 was £23,000, which has since risen by a fantastic 220% in the last 18 years. A three bedroom semi-detached house on Mapperley Lane in 1997 was £48,000 meaning the value has increased by an impressive 275% in the same 18 years.

Interestingly we manage properties in both areas - and both tend to be very popular!

If you would like more information on investing in Winchester’s property market, please call me or visit our offices.

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