Should you buy an ex-council property to let out – in Cotmanhay Ilkeston?

I had a conversation the other day with a landlord, who lives in Trowell, who took me up on the offer of having an informal chat about the Ilkeston and Amber Valley property market’s the other week.  We got talking about property in Ilkeston and in particular where good yields can be obtained.  The nice 2 bed town houses in Cotmanhay estate can be bought for around £73,000 and they rent for around £475 per month of 7.8% per year..  very reasonable indeed.

However, like I said a few weeks ago, yields are not everything in property investment. Another consideration is how easy it is for a property to let and the times there are void periods. The ex-council houses do tend to have more of those. I did some calculation on the last nine two bed town houses on the Cotmanhay over the last 12 months, and the average time to find a tenant was 69.7 days. Even if you take off the 30 days notice period a tenant has to give, that was nearly 5 weeks without rent. The headline yields don’t include those times. If it did, the yield would be nearer 7.1%. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term and have hardly any void periods or ongoing issues, which some high yielding properties can suffer from. The choice, Mr (or Mrs)  Landlord, is yours!

As I don’t sell property, I can look at the whole of the Ilkeston, Heanor, Eastwood and Belper property market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, please ring me on 01332 910499 or email on lettings@sprucetree.co.uk

Cotmanhay: Gross Yield 7.1% House with Garage

This 2 bed property in Cotmanhay is available to buy for £80,000.  Always a popular rental area we believe this property could achieve a gross yield of 7.1% if an asking rent of £475 was achieved.  This property provides parking space and a garage together with plenty of internal space for a young family.  Why not book that viewing and then keep me in the loop so we can help you rent it out!

Derbyshire buy to let - Rule five

Rule #5 Estate Agents .. Watch them!

There are good agents, and bad agents, but they are all paid by a vendor to SELL YOU a property, NOT paid by you to help you buy. 

As such they may not be as ‘on your side’ as they seem! Don’t get pressured into buying a property until you have a good feel for the market – if you miss out on a good deal, another will appear sooner or later. 

When you’re viewing a horrible property and the agent is saying it’s “fine as a rental” they are simply demonstrating they don’t know much about lettings.

8% Yield only £70k!

I saw this great 2 bedroom terraced property in Codnor priced at just £70,000.  This could be a great rental property, it doesn’t appear to need much doing, save for a little gardening!  A potential rental price of £475pcm could be obtained which makes for a whopping 8.1% gross yield.  Still reading?  You shouldn’t be!  Book that viewing and then give me a call see how quickly we can get tenants insitu! If you want to chat about this possible deal or any others you have in mind then give us a call on 01331 910499!

Derbyshire's buy to let Rule four

Rule #4 Condition Is Important
 
As a lettings agent, we’d prefer landlords to give us well presented properties in worse areas, than badly presented properties in good areas. That’s because nice tenants want nice properties, and as Ilkeston and Eastwood  has very few no go areas, people are more likely to be flexible on where they live, as opposed to what they live in. 

As such you should either buy a nice property, or buy a grubby one and make it nice. Don’t buy a grubby one and expect a tenant to take it as it is. Any tenant that does take it probably won’t be that good a tenant.

Ready to go - over 7% Yield in Ripley

A great little 2 bedroom terraced property in Ripley has caught my eye this week.  This property offers lots of space and looks clean and tidy with lots of modern features.  It looks ready to let and we think this could achieve £475pcm, meaning the gross yield would be in the region of 7.6%.  Book your viewing and then contact us to find you great tenants!

Ilkeston and Belper property prices .. the long climb back to 2007 prices

 

Some landlords have been speaking to me recently about stories in the press and their concerns about booming house prices and the next housing bubble in  Ilkeston or Belper. In the past few years, if you were going to be buying in Ilkeston or Belper, it was vital to ensure that you built in some capital growth by buying cheaply or finding a way to add value.  In the last six months, properties in both towns have risen by between 2% and 3%, some even have been going for their ‘full’ asking prices, so are properties too expensive. 

 

Over the last few months, the value of those 2 bed starter homes  in Shipley Common area of Ilkeston (I choose them because everyone knows them) have nearly returned back to the same level they were selling in at the 2007 peak of around £80,000. So are we nearly back to the boom prices / values of 2007 then?

Yes and No. Yes, the headline price for the property sells for is the same figure (ie £80k in 2007 and £80k in 2014), yet No, because these headline figures don't take into account inflation. Since 2007, inflation has risen by around 19%. If  ‘2007 property prices’ had kept up with inflation, that same 2 bed house wouldn’t be £80,000 today but £80,000 plus 19% inflation which equals £95,200. Most people think inflation is a bad thing, eating away at the real value of your savings. It can however, be advantageous to property investors. 

My answer to landlords is get the best advice and opinion you can. Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring when prices do start to rise again, you are in pole position.

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If you are a landlord, new or old, we’re certainly more than happy for you to email me on lettings@sprucetree.co.uk for our advice on what (or not) makes a good buy to let investment.