Allestree property market – good place to invest?

Last week, a couple from the Allestree area of Derby came in to discuss with me, them potentially investing in the Derby property market for Buy to Let for the first time.

As my regular readers will note, one of the most important considerations you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. However, another consideration is location and the type of property you could buy. They live in that nice modern estate built by Millers in 2003/4 on the left hand side of Kedleston Road, just after the Markeaton Lake, and it is one of Derby’s premier modern estates to live on.
With this in mind, they thought they might buy one of those 3 bed detached houses in the Birchover Way development (just across the road from them) The yield which could be achieved from one of those 3 bed detached houses in the Birchover Way area is around 4.5% per year (as they sell for between £210k and £220k and rent between £765 per month and £800 per month). However, I suggested something a little different, a bungalow in the Allestree area?

When we compare the possible 4.5% per year yield with the house, 2 bed semi detached bungalows in the Blenheim Drive area sell for around £130,000 and detached ones for nearly £160,000 (depending on condition). Considering there is hardly any difference in the rent achieved, be it semi or detached, but alot more relevant on the condition and layout, rents can be in the order of £600 to £650 per month, which means some semi bungalows could achieve returns of between 5.5% and 6% per year
Demand for bungalows is steadily rising, especially if they are presented well. If you would like more information on investing in Derby’s property market, be you a new landlord or an established one, we can give you that advice and opinion as 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.

Call me! 07977 235545
www.pplets.co.uk