Properties in the Pear Tree area outperform Littleover

Following a discussion with one of my landlords who lives in Littleover and has property to let in the Pear Tree and  Littleover areas and was thinking of purchasing another buy to let to add to his portfolio.

I did a comparison between the two and was surprised to find that the annual yield/return in the Pear Tree area is twice as much as the Littleover area . The average price of a property in the Pear Tree area is £74,500, whilst in Littleover it is £214,400. The last few months have seen the average rent in the Pear Tree area to be around £455 per month and around £617 per month in Littleover.

This means the annual yield/return would be 7.3% if you were to buy a property in the Pear Tree , but only 3.4% in Littleover…

This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how long it takes to find a tenant. The average time in the Pear Tree can be up to five weeks, whereas in Littleover a tenant is usually found in two weeks. If you take into account the extra three weeks of void period for your property every year, you are losing rent and therefore annual overall return from the property. Also, property values over the last 10+ years have also increased at a much higher rate in Littleover than the Pear tree area. This is something we will look at in the coming weeks.

We can help you to find the best investment property with our specialist lettings advice. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on St James Street or call 01332 366171 or visit our web site at www.pplets.co.uk

Look out for our Investment Property Sales coming soon!