There are over 5,200 flats in Loughborough. This only represents around 13% of the housing stock here, with the national average being nearer 17.5%. The average asking price of flats with one or two bedrooms in Loughborough is a little under £101,000, which is slightly down on a year ago.
At the moment you can buy a one bedroom flat in Pevensey Road, for a very reasonable £74,950. If a landlord put down a £15,000 (approx. 20%) deposit and borrowed the rest, they could achieve around £385 per month in rent. Even after paying the service charge, yields could reach over 6% gross (or over 7.7% on the borrowed amount). If you look at one of my other June posts you will see one at £59,950). Remember every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.
Finally, let’s not forget about the potential increase in capital value of the property. Property prices are down about 10% in the Loughborough area compared to 5 years ago however in the last 3 months they have risen over 1%. The market seems to be moving - upwards.
If you would like advice about what could make a good investment feel free to contact me without any commitment - I could talk about property (or motorcycling) all day!