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 lettings@sprucetree.co.uk
No comments:
Post a Comment