Thursday, 5 June 2014
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 email@example.com