There are over 1,200 flats in Grantham. This only represents around 5.5% of the housing stock here, with the national average being nearer 17.5%. The average price of flats with one or two bedrooms in Grantham is around £79,800, which is nearly 2% lower than 12 months ago.
You can buy a one bedroom flat in the development on Springfield Road, for a very reasonable £55,000. If a landlord put down a £15,000 deposit and borrowed the rest, they could achieve around £400 per month in rent. Even after paying the service charge, yields could reach around 7.5% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.
Finally, let’s not forget about the potential increase in capital value of the property. I was looking at the one bedroom flats in the Regents Court development and found that they have sold for around £27,000 in 2000. This had almost tripled in value over 5 years, to nearly £75,000 in 2005. The values have now dropped down to an average nearer £60,000, but that is not to say we couldn’t see similar growth in the future.
If you would like some advice about what could make a good investment, please visit our office on St Peters Hill.
