Friday, 3 May 2013
5% yield & some capital growth on the Forest side of Loughborough
This is has just come on the market with a local agent for offers over £170,000 on Holt Drive on the Forest side of the town. Holt Drive is very well thought of and a nice area and detached properties at reasonable prices are hard to come by. The average price there is currently over £186,000 and prices are just starting to move with an 0.65% rise seen in the last year. Compare that with the previous 9.6% drop 5 years ago and the 3.3% drop 3 years ago and it appears that properties there are probably at the bottom now and starting to rise - a good time to buy, especially if it comes cheap with some work required.
With some modernisation a property like this will rent for £750+ pcm so if we allow £10,000 for modernisation this could make a yield of 5% + with a better chance of some capital appreciation than some other areas of the town due to location and scope for improvement.
Local schools are good and Holt Drive is a long established family residential area with good links to local services. We have been renting a 4 bed further along Holt Drive for £1000 pcm and getting a good return for the landlord.