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.
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.
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