In previous articles we have found that ex-council properties can achieve good annual yields of around 7%. Yet their average value tends to stay quite stable when we compare this to the average capital growth on the more modern estates of Barrowby Gate and Gonerby Hill Foot, which have had a more significant rise.
Nevertheless, a three bedroomed semi-detached property on Brittain Drive sold for £95,500 in March 2012 and it was sold again earlier this year for £106,500, which is a return of 11.5% in less than 11 months. Another example of good capital growth from an ex-council property is a three bedroomed ‘flat top’ on Heathfield Road which was sold in January of this year for £84,000, following an increase in value of around 15% in just over a year.
The best performing property for capital growth in 2013 so far was bought in November 2011 for £64,000 and has recently sold for £79,000. This is a significant return of 16.7%. However, this was not an ex-council property it was a Victorian terraced house on George Street!
If you would like some advice about buying to let, please come and see us at our office on St Peter’s Hill.
