Thursday, 26 June 2014
Ilkeston sees 10.07% return on investing in the rental market
Following my recent articles I was talking to a landlord from Nuthall the other day about the Ilkeston and Eastwood property markets. With all the news about house prices rising, he wanted to know what had happened to average property prices. Well there is no such thing as an ‘average property’, but according to my calculations, the ‘average value of a property’ in Ilkeston is now £139,000, which is a rise of £4,200, or 3.1%, from 3 months ago when it was £133,200.
Now by my calculations, the average rent being asked in Ilkeston is, as quoted last week, £476 per month, which means the yields/annual return are an impressive 4.1% per year. Even more impressive, in the last 12 months, the average value of a property in Ilkeston has risen by 5.97%, meaning landlords achieved a total return of 10.07%.
When comparing this to what you get in return from banks, buy to let could be good investment for you. Don't get me wrong, there are pitfalls. My message to all the people of Eastwood is that their landlords would have seen an 8.3% return for the year, whilst Heanor and Belper landlords a more modest 5.4% and 3.1% respectively. Be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple. Take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't.
Even if it's not from ourselves, there are still a few regulated 'lettings only' agents in Amber Valley, Erewash and Broxtowe, who are well placed to advise on whether the property you're considering will rent, and at what potential price. I am certainly more than happy for you to ring me on 01332 910499 or email me on email@example.com