I was talking to someone who lives in a detached house on the Barrowby Gate. He wants to purchase his first Buy to Let property and has noticed our rental index and previous articles, so was interested in getting to know the industry a little bit more.
As he has lived in the Barrowby Gate for over 8 years and he felt comfortable investing in there as he knew it well, we started to discuss the property market in this area. Firstly, we found that 87 semi-detached houses have sold in the Barrowby Gate since the year 2000.
Property values in Grantham have risen on average by around 103% over the last 13 years, but most semi-detached properties on the Barrowby Gate have beaten that rise. For example, a two bedroomed semi-detached property on Durham Close rose by 122%, from £43,000 in 2000 to £95,500 in 2012.
When we look back to 1999, a three bedroomed semi-detached property in the Barrowby Gate was bought for £33,500 and sold in 2008 for an impressive £137,000. With excellent capital growth you would expect yields to be comparatively lower, but most two bedroomed properties on the development can be picked up from £100,000 to £110,000 and could have achievable rents of £500 to £535 per month. This means annual yields can be around an attractive 6%!
If you would like to talk to us about your potential investment, please come into our office on St Peters Hill.
