Thursday, 22 October 2015
A landlord recently missed his chance to buy a nice three bed semi-detached property on Buxton Avenue, in Heanor, as it sold quickly. He asked me if there something special about the area, so I did a little research.
I have included roads surrounding the Buxton Avenue area such as Sunningdale Avenue, Owers Avenue and Coppice Drive amongst others in my findings. Many of these properties were built around the 1950s.
A number of the three bedroom semi-detached properties have sold in the area for between £90,000 and £135,000 in the last two years. Remember though that to prepare a property as a rental investment could take additional funds and depending on the work needed could be as much as £10,000, or more, so some of these properties may have needed some care and attention. These properties would achieve rents of around £495-550 per month, which would provide a reasonable annual yield of around 6%.
The three bedroom semi-detached properties in the Buxton Avenue area are now asking a minimum of £125,000 and upwards. The older houses offer the tenant and buyer larger rooms, which can be more appealing.
Even though the purchase price is heading upwards, the rents being achieved are also edging upwards, meaning the annual yield is still good especially as the houses have seen great increases in value and are popular with buyers and tenants.
So, if you would like to talk to us about property in our area please feel free to visit our offices.
Thursday, 15 October 2015
In previous articles we have found that ex-council properties can achieve good annual yields of well above 7%. Yet their average value tends to stay quite stable when we compare this to the average capital growth on the more modern estates of say Shipley View, which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Beauvale Drive sold for £88,000 in April of this year having originally sold for £65,000 in 2011 which is a return of over 35% in less than 4 years. Another example of good capital growth from an ex-council property is a three bedroomed semi again on Beauvale Drive which was sold in 2011 for £103,000, following an increase in value of around 30% in just over two years.
The best performing property for capital growth in 2015 so far was bought in September 2011 for £69,000 and has recently sold for £160,000. This is a significant return of 132% - or over 25% per annum. However, this was not a typical rental property, it was a detached house on Cotmanhay Road!
If you would like some advice about buying to let, please come and see us at our offices.
Thursday, 1 October 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Ilkeston and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Ilkeston....
In the DE7 postcode there are 23,090 households, of which 26% are detached, 40% semi-detached, 32% terraced and only 2% are flats (half the county average in Derbyshire). Some 71% of all these properties are owner-occupied and around 15% are privately-rented. Looking at the sales activity over a quarter of all those houses (7,179 to be precise) have changed hands since 2005.
Compared to the national average - Ilkeston has 10% more detached houses, 20% more semi detached houses, about the same percentage of terraced houses and 89% less flats. This is a good indicator that Ilkeston is good place to buy property in.
If you would like more useful facts and figures pop in to see us at our offices.