What type of property in Erewash, Broxtowe and Amber Valley sells the best?

Knowing how saleable a property is, is half the battle when deciding what (or not) to buy for your next property investment. Why?  Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to. Bearing this in mind, last week, a couple from Littleover popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s) what type of property would be easier to sell if they needed to in the future. Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.

A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week for Eastwood, Ilkeston, Heanor plus Belper and it produced some very interesting results

Detached houses first, and whilst not many people buy them for buy to let, it’s always interesting to see how they compare against others. Belper comes out on top, with 51 of the 153 detached houses having buyers (33.3%), Ilkeston and Eastwwod vitually equal second place with 31.5% and 31.1% of the respective town’s detached properties having a buyer and sold stc.  Heanor brings up the rear, with only 26 of its 95 detached houses having buyers (27.3%).

Semis are a completely different story with Heanor and Belper miles ahead of the other two, both towns respective semi detached houses having buyers and sales agreed for 50.8% and 50.5% of them. Ilkeston has a decent bronze medal at 46.3% but only just under a quarter of Eastwood semis (24.6%) having a buyer.

Finally, terraced houses in Ilkeston are top dogs, with 48 of the 105 terraces having buyers (45.7%), whilst Belper has 41.7% of terraces sold STC, Heanor 37.7% and a very disappointing 19.5% in Eastwood (maybe some bargains to be had there?).

I am always giving advice to my existing and new landlords in Erewash and Amber Valley on what to buy (or not as the case may be).  Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.  

Terraced houses in Ilkeston – what is the best area?

 

I was talking to a couple last week, who are considering becoming landlords for the first time and they were looking for advice as to whether a Victorian terraced property in Ilkeston or modern terraced house (although estate agents call them town houses!) in the town. In particular, they wanted to know which area would make a better Buy to Let investment. As I have mentioned many times in these articles, buy to let is primarily a balance between yield and capital growth investment and whilst these types of properties can let and sell well, I wanted to do a bit more research to help them with their decision.

Starting with the modern 3 storey 3-4 bed properties that seem to be all the rage with builders, these can be bought for £145,000 and rent for £625 pm, giving a yield of 5.1% per year. The more popular three bed two storey town houses, built in the 80’s and 90’s, sell for around £120,000 and let out at £550 pm, giving a yield of 5.5% per year. Two bed modern equivalents in Ilkeston sell for £107,500 and rent for £465 pm, giving another good yield 5.2% per year. Now onto the Victorian terraced houses, and a decent Victorian terrace sells for £78,500 in Ilkeston and rents for £425 per month in good order, giving a yield of 6.5% per year.

However, as we all know, we need to consider capital growth. Interestingly, modern terraced houses have risen by an impressive 97.6% since the turn of the Millennium but that isn’t as impressive as the average terraced, which has risen by 122% in the same time frame. Interestingly, modern semis had increased by a more reasonable 106%.

Ultimately, we found Victorian terraces the best investments on paper. However, Victorian houses are older and often have more things go wrong on them, more often. Therefore, if you are going to buy an older one, make sure you buy one that has been re-roofed, damp proof coursed and checked for wet and dry rot.  Before I go, if you get the chance, you really must search the internet for some old maps of Ilkeston, the Amber Valley and Erewash. Whilst researching this article, I came across a map of Ilkeston from 1923 and the town consisted of no more than 10 to 15 streets based around what is now Challons Way. It also shows the old railway cutting through the town from Derby to Kimberley – very interesting!

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 in Ilkeston.

High Yielding Home in Ripley

This 2 bedroom terrace is a real find.  It’s priced at just £59,950 and and appears to need very little work to put on the market, from what we can see, just a lick of paint!  Setting an asking rent of £425 will bring in a hefty 8.5% yield.  Make that call and arrange your viewing.  I’ll be waiting to help you rent it out!

Belper vs Heanor Property markets – why such a difference?

I was talking to one of my landlords from Denby Village the other day, when we were looking over a few properties that he was considering buying in Belper or Heanor. As I cover both towns, I was able to discuss the two towns in depth. We started to notice an interesting pattern in the property markets between the two towns. Belper has always been a more expensive town to buy in comparison to Heanor, but depending on what type of property you buy, there are some fascinating differences.

A few weeks ago, we said that the average value of a property in Heanor was £129,900, compared to Belper’s  £204,400 (making Belper property values 54% higher than Heanor’s). However, when you look deeper, things become quite interesting. Terraced houses in Belper are 47% higher than Heanor’s (£132,900 to £90,200) and semi detached properties are only 37% higher in Belper (£159,400 compared to £116,100) yet flats are 77% higher in value Belper than Heanor!

So why the big difference when it comes to looking at the two towns as a whole? Well after investigating, it transpires that in Belper, there are proportionally 42% more detached houses than Heanor, whilst Heanor has 23.5% more semis and 24.3% terraced houses than Belper. The number of houses in both areas are almost identical, it’s just there are lot more of the upper end (detached and semis) in Belper than Heanor. That means if you are looking to invest for capital growth, Belper could be a better bet and if you were looking for a slightly better yield, Heanor could be for you.

As always, everyone’s circumstances and what they want from investing in property is different, and just like these two neighbouring towns are so different, it just goes to show that you need to know your marketplace and decide which is the right town for your money. 

If you are an existing landlord with rental property in Erewash or Amber Valley, whether you are landlords with ourselves or another agent or someone who  is thinking of becoming a landlord for the first time, don’t hesitate to ring me on 01332 910499 or send me an email to lettings@sprucetree.co.uk for my thoughts and opinions on the local property market and what does (and doesn’t) make a good buy to let investment.

Family Home 7% yield Kirk Hallam

Kirk Hallam has a wealth of great properties and this 3 bedroom home made me look again.  At £85,000 I believe it’s an easy 7% gross yield property.   This property is in the catchment areas for all the main Ilkeston Schools and near to local bus routes so it is likely to be an ideal home for families.  Nicely decorated and ready to move tenants into, it’s one not to be missed.  Book that viewing then give me a call so we can find you great tenants.

7.6% Yield in Langley Mill

This 2 bedroom property in ever popular Langley Mill has been put on the market for £74,950.  Suitable for couples and small families We think it could rent for £475pcm giving approximately 7.6% gross yield.  It’s a nice clean property which should rent with minimal expense.  Great amenities close by which are bound to be popular. Call me when you’ve viewed it to discuss how we can help you further!

Erewash vs Amber Valley - Census figures released

It seems a distant memory three years ago when we were filling in our census returns, but now the final figures for the each individual town and Council area have been released.  It all makes for some very interesting reading especially around the property sections, so let’s look at the Erewash and Amber Valley figures.

Of the 48,692 properties in Erewash, just over seven out of ten properties are owned (71.5 % to be precise) and 5,762 householders rent their house (or 11.8% of households). Compare that to Amber Valley where 38,973 householders own their own home (74.1%) and 5,618 of households are rented (10.7%). When you consider the national average for renting is 15.6%, both areas are the bottom quartile of local authorities for private renting

Roll the clock back 10 years to 2001, and in Amber Valley, 77.1% people owned their homes (compared to the 74.1% mentioned above), so it would be fair to say less people own their own home now? No, quite the opposite, because in 2001, 37,900 of Amber Valley houses were owned and by 2011, that had increased to 38,973 households (as above).

The reason is that over those 10 years, 3,467 houses were built in Amber Valley, and guess what, most were bought for buy to let. In 2001, 2,854 houses in Amber Valley were rented and as we discussed earlier, by 2011, that had risen to 5,618 households, a massive 96% jump in private rented property in Amber Valley over those 10 years (and the figures are almost identical for Erewash).

As in the rest of the UK, locally more people own their home than 10 years ago (in fact, out of all the UK local authorities, Amber Valley is in the top 12% of UK local authorities for home ownership and Erewash is in a very respectable top 25% spot), but more importantly, even more people rent. The demand for rental property will steadily continue to rise as the UK turns into a more European model of homeownership.

So, if you are considering becoming a landlord or are an established landlord who is thinking of buying another property to rent out, please do your homework. Feel free to ask my opinion on what makes a 'decent property'. I don't sell property, so it's in my interest for you to buy the right property for you, not me. I don't charge for that opinion, because I hope you will recommend me to your friends, which is in fact the best compliment you can make me.

Family Home Circa 8% Yield Ilkeston

This 3 bedroom semi in Ilkeston is available for £79,950.  We believe it could potentially yield 7.8%.  A bit of hard work would be required to the gardens of the property to remove the conifers which are threatening to take over, but overall it seems an interesting proposition.  Bound to attract a nice family with it’s proximity to local schools and with the benefit of off street parking.  Why not book that viewing and then call us back to discuss your options further.

c11% Yield Ilkeston

This 2 bedroom property in Ilkeston needs a little TLC but it is a real bargain!  It’s priced at £49,950.  We think it could achieve £465 per calendar month giving an incredible yield of 11.2% - yes you did see that correctly!  The property would benefit from re-decoration works and a facelift in the kitchen but otherwise it seems good to go!  If you don’t fancy going that far, you could just give it a lick of pain, ask £450 and still get 10.8% yield.  If you’re still reading, step away from the computer and book that viewing.  We can provide you with help and advice after your viewing!

Minor Works - 7.7% Yield Heanor

This 2 bedroom terraced house has been given a modern twist with open plan living downstairs.  Priced at £69,950 this house is almost ready to let out with just a few minor but essential works required.  We believe you could reasonably ask for £450 and achieve a yield of approximately 7.7%.  Bound to be popular with young families due to it’s location.  Give me a ring once you’ve viewed and I’ll advise on what is required to bring in the tenants and also what needs doing.

Property Values along the A6007

A few weeks ago, I said that property values in our part of Derbyshire had risen on average by 3.13% in the last 12 months but that could be split down to the different towns so, for example, Ripley had only risen by 2.9% whilst at the top end whilst Eastwood’s had risen by an impressive 5.2% in the same 12 months.

Anyway, I had a landlord ring me a few weeks ago  after reading one of our Property Newsletters, asking about the smaller towns and villages in our area, in particular a couple of the towns/villages along the A6007.

An overlooked road in the area, the A6007 is often seen as nothing more than a local Erewash link road really. However, the A6007 links Stapleford with Ilkeston, Heanor and Codnor - though anyone wanting to go between the end points would surely use the A52, M1 or A610.

Starting at the Southern end, Stapleford has seen values increase by 3.2% in the last 12 months, taking an average property to £130,300. New figures for Ilkeston show that values have jumped tremendously in the last 12 weeks. The dip of early of 2013 has worked its way out of the system, and now property values in Ilkeston see themselves 5.9% higher than a year ago (over half of that increase being in the last 12 weeks).

Heanor makes fascinating reading, as values in the later part of 2013 shot up, only to drop again around Christmas ever so slightly. Heanor property values are still 0.2% lower than they were at the back end of 2013 (but not to worry, Heanor values are still 8% higher than they were in 2009!).

Finally, as we reach the last town, Codnor, this town has seen average values increase by £3,300 in the last 12 months, taking an average property up in value by 2.65% to £129,200

I can only see greater demand for rental properties in the whole of Amber Valley, Erewash & Broxtowe  which will mean more people will continue to buy property for buy to let and, where there is greater demand, the price tends to go up. This, however, is only my opinion.  If you want to chat about any matter relating to property in Amber Valley, Erewash & Broxtowe, give me a call on 01332 910499 or email me on lettings@sprucetree.co.uk

 

 

 

 

 

 

Tidy 2 Bed Semi Leabrooks

I saw this tidy 2 bedroom semi in Leabrooks advertised recently at £89,950.  It’s ready to move into and should achieve £475 pcm.  That’s a 6.3% potential gross yield.  A popular area with easy access to the A38 making both Derby and Mansfield easily accessible, so great for commuters.  Book a viewing woth the agents so we can discuss getting you tenants moved in!