As you know I like to keep an eye on the changing local
property markets so when a landlord with a small property portfolio came into
our office last week, it gave me the chance to catch up on some analysis. He
lives between Ripley and Ilkeston, in Heanor, and has properties in both towns.
He wanted to ask our opinion on where he should his next Buy to Let property.
Looking at Ripley, the average property price can be a
healthy £143,500 and the average rent is £445 per month. In Ilkeston, an
average property is a lower £136,000 and the average rent is a more impressive £550
per month. The annual yield in Ripley could be only 3.7% per year, compared to Ilkeston
where he could achieve an annual yield of nearer 4.9%! On the face of it much
this is a higher yield – 32% higher in fact!
It made me consider two other towns close by, either side of
Ilkeston; Long Eaton and Heanor. In Long Eaton, I was surprised to find
property values are higher than in Ilkeston, but similar to Ripley, with an
average property price of £141,000. They have an average rent of £495 per
month, which could achieve a yield of 4.2%. The average price of a property in
Heanor is £131,500, which is the lowest of the four towns, with rents of around
£470 per month. This would mean an average rental yield of 4.3% per year.
It goes to show our towns of Ilkeston and Heanor can be a
good area for an investment property, where absolute property prices are
relatively low, and yields strong, but it is a decision that shouldn't be taken
lightly as it is important to remember that these are only averages, so the yields for some
small to medium sized properties in popular areas of Ilkeston can achieve
yields of up to 9% or more per year. If you want to know our thoughts on
property in Ilkeston or any of these towns, then come into our office.
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