Do semi-detached properties in Hilton make good Buy-to-Let Investments?

At the Graham Penny Auction last Friday I got talking to someone who lives in a detached house in Hilton. He wanted to purchase his first buy to let property and had noticed our local presence and previous articles, so was interested in getting to know the industry a little better.

As he has lived in Hilton for over 8 years and he felt comfortable investing there as he knew it well, we started to discuss the property market in the area. Firstly, we found that 87 semi–detached properties had sold in the area since 2005.

Property values in the area have risen, on average, around 84% over the last 10 years, however, most semi’s have beaten that rise. For example, a two bedroom semi--detached property on Foss Road rose by 122%, from £43,000 in 2002 to £95,500 in 2012.

When we looked back to 1999, a three bedroomed semi-detached in Hilton was bought for £33,500 and sold in 2008 for an impressive £137,000. With good capital growth you would expect yields to be comparatively lower, but most two bedroomed properties in the area can be picked up from £100,000 to £110,000 and could have achievable rents of £500 to £525 per calendar month. This is an attractive 6% return!

If you would like to talk to us about your potential investment, please come into our office on the High Street.