Thursday, 30 July 2015

Old Coppice Side or Buxton Avenue in Heanor...Which is the best investment?


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.

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