Investing in Loughborough buy to let property is different from investing in the stock market or depositing your hard-earned cash in the Building Society. When you invest your money in the Building Society, this is considered by many as the safe option but the returns you can achieve are awfully low (the best 2-year bond rate, while looking, from Nationwide is a whopping 0.75% a year!).
Another investment is the Stock Market, which can give good returns, but unless you are on the phone every day to your Stockbroker, most people invest in stock market funds, making the investment quite hands off and one always has the feeling of not being in control. However, with buy to let, things can be more hands on. One of the things many landlords like is the tactile nature of property - the fact that you can touch the bricks and mortar. It is this factor that attracts many of Loughborough’s landlords – they are making their own decisions rather than entrusting them to city whizz kids in Canary Wharf playing roulette with their savings.
One Loughborough Investor paid £113,000 for a 4 bed terrace on Wharncliffe Road in January 2016. It appears some cosmetic work was done to the property and it was resold a few months ago (October 2016) for £143,000 … 26.55% return before costs (or compound annual return equivalent of 39.71% AER) http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=40755273&sale=88743177&country=england
This demonstrates how the Loughborough property market has not only provided very strong returns for the average investor over the last five years but how it has permitted a group of motivated buy to let Loughborough landlords and investors to become particularly wealthy. As my article mentioned recently, more and more Loughborough people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to grow from strength to strength.
If you want to know what (and what would not) make a decent buy to let property in Loughborough, then please contact us for a chat about it - we regularly monitor different properties for sale in and around Loughborough and are happy to talk about any that you have seen and offer a second opinion.