Thursday, 15 October 2015
Ex-council properties in Ilkeston... Are they good buy to let investments?
In previous articles we have found that ex-council properties can achieve good annual yields of well above 7%. Yet their average value tends to stay quite stable when we compare this to the average capital growth on the more modern estates of say Shipley View, which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Beauvale Drive sold for £88,000 in April of this year having originally sold for £65,000 in 2011 which is a return of over 35% in less than 4 years. Another example of good capital growth from an ex-council property is a three bedroomed semi again on Beauvale Drive which was sold in 2011 for £103,000, following an increase in value of around 30% in just over two years.
The best performing property for capital growth in 2015 so far was bought in September 2011 for £69,000 and has recently sold for £160,000. This is a significant return of 132% - or over 25% per annum. However, this was not a typical rental property, it was a detached house on Cotmanhay Road!
If you would like some advice about buying to let, please come and see us at our offices.