This time last year rents were around the £425 mark near to Forest Road in Annesley Woodhouse, and this was a time one of our landlords had purchased a property for a refurbishment project. For those that do not know, Annesley Woodhouse is situated near to Sherwood Business Park. It has a good local nursery & primary school and has nearby access to J27 of the M1.
Recently, terrace properties have sold between £75,000 to £78,000, putting our landlord in a good capital growth position where they have seen the value of the property increase by 44% in a year. Additionally, we have let this property at £495pcm, which is a huge increase from what we have seen in recent years and achieves a healthy 10% yield.
This is an excellent example of what happens when you find a property that is in need of a refurbishment, and in an area that shows signs of a promising rental market. Factors such as a good local school, recently built Co-op, and a complete refurbishment, all contributed to high rental price.
Currently there is a property to be sold (above) by Public Auction on the 8th June 2017 at the Leeds United Football Club, Norman Hunter Suite, Elland Road, Leeds, LS11 0ES (click for Rightmove link). The asking price is £35,000 and I am sure you will agree that this will be a refurbishment where the property will need to be taken back to the bare brick (however the kitchen does look to be fairly modern!).
Given the sold value of similar state properties being around the £50,000 mark, you could achieve a similar gross yield of 9%+, even with a fair rental of £465pcm. Properties of a decent standard have been valued around the £75,000 mark which will put you in a good position with your capital.
Don’t know where to start your research? Contact us today at mansfield@belvoir.co.uk and we can point you in the right direction!
