Althorpe Drive, Loughborough. Buy and rent?
I was asked by a landlord recently if Althorpe Drive Loughborough
is a good place to invest in buy to let. Having done so much business in that
area over the last 16 years I felt that although I could answer with confidence
I would nevertheless do a little research to update my figures for him.
Average rents over the last 2 years on Althorpe Drive were
£580 pcm and the houses let there are three bedroom semi’s. We have done
several of the lets that have taken place over the years on Althorpe Drive and
have never had a problem renting them.
Average prices in that area are £170,000 so an average gross
yield would be 4%. Now that is not as high a yield as can be achieved in
Loughborough and in addition, very few properties have been coming up on
Althorpe Drive for sale recently. So the signs for a new buyer there are not
great from an investment point of view.
If you already have a house on Althorpe Drive, and you probably paid a lot less than £170K for it, then renting it out could work well for you as they rent so well.
For a newer landlord, there are plenty of other areas in and
around the town that will get you a higher yield. You need to have clear in
your mind whether high yields on rent or high chances of good capital
appreciation are more important, and how much risk you want to take. (Some
property sells on faster and more reliably than others but may not make the
return on rent you want – some properties do both).
Look for good condition, good parking and drive by the area
at different times of the day/week to get a feel for the streets.
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