I was talking to a couple last week, who are considering
becoming landlords for the first time after they had come into some money
knowing the return they would get investing in the Bank. They have always lived
Heanor and wanted to buy something in the town, or close by, as they know the
area well. They were looking for advice as to what kind of property they should
buy, but they particularly wanted it to be South of Heanor’s town centre.
Their budget was in the £200,000 to £220,000 region, so I
initially looked at property in Smalley Village. The average value of a property
in Smalley Village is £217,307. An
average property in Smalley Village rents for £841 per month, giving an average
yield of 4.63%. They thought that yield was rather low so I then considered the
Roper Avenue area of Heanor. Semi
detached houses are worth on average £102,200 here and rent for around £523 per month, giving a much better
yield of 6.14%, which is proportionally just over a third (or 36.2% to be
precise) more than Smalley Village.
However, to judge a rental investment, you must consider the
capital growth as well as the yield. Since 2002, the average Roper Avenue semi has
risen by 79%, whilst properties in Smalley Village have risen by 112.1%. Ultimately,
we found both areas to be a good investment depending on your own situation,
but as you can see, Roper Avenue does offer better yields, but at the expense
of better capital growth than Smalley Village offers.
If you are a landlord, new or old, we’re certainly more than
happy for you to pop in and see us at our offices Denby House Business Centre
on Taylor Lane in Loscoe for a chat or
email me direct on jeremy.bullock@sprucetree.co.uk
No comments:
Post a Comment