Thursday, 27 August 2015
Last week, a landlord came in to our office to discuss the rising property values in Belper. He owns a varied portfolio of rental properties, primarily in the Belper area, so it is interesting to compare the increase in property values around the area.
Over the last 12 months the average property value in Belper has risen by nearly £10,500, from £211,000 to £221,500. This is a very reasonable 4.9% increase. When we looked at the values for detached houses, this average increase is even greater at £18,300, or 6.5%. This is a considerable average increase of £351.92 per week.
When I looked at some of the surrounding towns, Derby has a lower average increase in property value, at around £63.11 per week, whilst Nottingham has a more modest average increase of around £56.21 per week. It is, nonetheless, a rise in average property values to suggest the market is recovering in our area.
When considering this landlord’s buy to let portfolio, the rental values across the East Midlands have increased by about 6% over the last12 months, therefore it could be a good time to invest in the property market in Belper.
If you would like some advice about buying to let, please come and see us at our office.
Thursday, 20 August 2015
In other articles I have discussed the differences in the rent that could be achieved from properties in the villages around Ilkeston, compared to the town itself. However, I didn’t mention the average values in both and how that affected their annual returns/yields.
The average terraced house in Ilkeston is worth around £98,000, whilst terraced houses in the surrounding villages, such as West Hallam, Stanley, Mapperley, Smalley and Horsley Woodhouse, are worth around 34% more with an average in the region of £131,500. A similar, although not so pronounced difference, was found for the value of an average semi-detached house worth £125,000 in the town, with the value increasing by 17% in the villages at £146,000. For a detached house in the town, you can pay approximately £221,000. This value is increased by 11% in the surrounding villages, with average values of £246,000.
If you are a landlord who is looking to buy property to let, before you buy in West Hallam or any DE7 6 village, you should consider the possible annual returns/yields. In the villages the yields are quite low, at around 4%, compared to around the 5+% annual yield you may receive from properties in town.
Specifically in West Hallam though we have recently had a spate of rentals – all of which have rented well (some positively flying out the door!) and also enquiries about the rental prospects of other properties in the village – so things are looking good for the village-landlord.
So if you would like any advice when choosing properties, you may come and see us at our offices.
Thursday, 13 August 2015
A landlord became ever more curious about the Eastwood’s Buy to Let market after reading our articles about various areas around Eastwood, so decided to pop in and ask our advice.
I found that a small two bedroom cottage on Sydney Street, Kimberley, was bought for £85,000 in the summer of 2011. The same property then sold, after a full scheme of refurbishment, for £170,000, twice the original purchase price, in April this year.
Looking at some of the after photos shows what a lovely job has been done on this one!
A traditional 2 bed terraced property in Noel Street, Kimberley was acquired for £68,500 and then sold for £98,500 in May of this year giving a very respectable gain of 44%. However, prices in the town during this same time period rose by just 12%
Another property, a tidy 3 bed semi-detached house in Charles Avenue, Eastwood, was purchased for £100,000 in July 2013 and then resold in March this year for £140,000, a 40% gain in less than 2 years, compared to the average growth in the area, across the same time period, of some 11%, so it should have only sold for £111,000 if it had merely kept up with the towns average house price.
With rents for semi-detached houses in the area achieving between £550 and £600 per month, average yields are around 6%. I think in terms of a rental investment, this is worth consideration – buying carefully in the first place and assuming good capital growth – which we can definitely can see happening here.
Our passion lies firmly within the residential property market, so please feel free to talk to us at any point about our area.
Thursday, 6 August 2015
Here at Spruce Tree Lettings, we can guide you to the right places to identify property values and yields in Belper and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Belper....
There are 703 streets in the DE56 postcode with 18,490 households and 17% of all those houses (3,146 to be precise) have changed hands since 2010.
Compared to the national average - Belper has 69% more detached houses, 11% more semi detached houses, 19% less terraced houses and 77% less flats. This is a good indicator that Belper is good place to buy property in.
Looking at the latest Rightmove investor data that has popped into my email in tray, asking prices are up 3% in the last quarter, and 9% this year, whilst the average price of a 2 bed house currently stands at £161,000 and a 3 bed house at £226,000, with overall average rental yields standing at 5.81%.
If you would like more useful facts and figures pop in to see us at our offices.