Thursday, 16 July 2015
Ex-council properties in Ilkeston... Are they good buy to let investments?
In previous articles we have found that ex-council properties such as those to be found on the Cotmanhay and Hopewell Farm estates in Ilkeston and off St Norbert’s Drive in Kirk Hallam can achieve good annual rental yields of over 8%. Yet their average value tends to stay quite stable when we compare this to the average capital growth in non-council areas such as West Hallam which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Queen Elizabeth Way in Kirk Hallam sold for £62,000 in August last year, albeit in need of some TLC and it was sold again earlier this year for £76,000, which is a gross return of 22.5% in less than 9 months which is equivalent to 35% per annum. Another example of good capital growth from an ex-council property is a two bedroomed on Birchover Place (off the Beresford Road) in Cotmanhay which was sold in March of this year for £85,000, following an increase in value of around 16% in just over a year and a half. In this particular case no real work had been done at all as the property was in very good condition with a lovely kitchen and plenty of garden and off-street parking space.
The worst performing property for capital growth in 2015 so far, however, was bought in November 2006 for £200,000 and has recently sold for £153,000. This is a significant decline of 23.5%. However, this was not an ex-council property it was modern detached bungalow, which shows that whatever you are buying, caution is always advised.
If you would like some advice about buying to let, please come and see us at our offices.