I was talking to somebody last week from Heanor, who was
considering becoming a landlord for the first time. I meet many such potential
first time landlords and it’s always interesting to see what ideas they have. He
visited our office to ask us whether buying a property on Old Coppice Side or Buxton
Avenue would make a better Buy to Let investment, and which would offer a
better return/yield. He knew the area well, as he lived around there some years
ago. He knew that both streets were quite close and that houses on Old Coppice
Side were, in the main, a little closer to the park. I confirmed that the
properties on both streets let and sell well, but I wanted to do a bit more research
to help with his choice.
The average price for a property on Buxton Avenue has been £133,278;
while on Old Coppice Side it was 16% more, at £154,813. To better understand
the investment opportunities available, we took a look at the rents achieved
over the last year. The average rent achieved on Old Coppice Side was £560 pcm giving
a yield/return of 4.34%. On Buxton Avenue the average rent was slightly lower,
at £537 pcm, with a corresponding yield/return of 4.83%. What with the similar
yields, albeit with those for Old Coppice Side a little lower, and the
corresponding higher capital growth, in absolute terms, on Old Coppice Side (due
to the naturally higher average prices), we found both streets to be as good as each
other, as there is only a small difference in the yields/returns, which we
would not have identified without the extra investigation. In this case it
really comes down to the best available property to buy on the day.
If you are a landlord, whether you deal with us or not, feel
free to visit into our office on St Peters Hill to ask our opinion on which
property investment is best for you.