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.