The property market on Limes Avenue out performs the market on Wymondham Way
I recently spoke to a couple who were considering buying their first buy to let property in Melton Mowbray. They live in a nice 4 bed detached house near the Country Park and wanted something so it would add to their pension plans. We discussed investing in a rental property suitable for the high number of families looking to rent in Melton Mowbray, so it would need at least 3 bedrooms. One of the most important considerations you will make before investing is the balance between annual return (yield) and the annual value increase (capital growth).
Wymondham Way on the Country Park estate is a very popular area for families. As they lived there themselves, we looked at the average three bedroom semi-detached house sells at around £152,000 and rents are roughly £625 per calendar month. However, we also looked at Limes Avenue. On that street, a three bedroom terrace property can be bought for around £112,000 and the achievable rents can be around £525 per calendar month. The yield which could be achieved from property on Wymondham Way is around 4.93% per year, which is compared to the possible 5.6% per year on Limes Avenue. I was quite surprised to find that three bedroom terrace properties on Limes Avenue have outperformed those on Wymondham Way. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties
Since 2000, a semi detached house on Wymondham Way has increased by around 118% whilst the properties on Limes Avenue have increased by only 83%. It depends if you want capital growth or yield. If you would like any advice or opinion on what (or not to buy) then please pop into our office on Burton Street, Melton Mowbray or call Charlotte or Katie on 01664 569700.
