Lettings expert Charlotte Baker from Belvoir Lettings gives us an insight on where is best to invest - Melton Mowbray or Asfordby?
Searching the local property market I am finding it really difficult to find anything for sale under £150,000 that’s appealing to investors these days.
I came across a spacious 2 bed terrace in Asfordby Hill, on the market with Melton Premier for £129,950. It looks in good condition internally and has a large kitchen for a terraced property. We would achieve £575 pcm for this and it would give you a potential yield of 5.3%.
Properties in Asfordby seem to come onto the market for slightly lower asking prices than similar properties in Melton Mowbray. This has always seemed a bit odd to me as the area has good Primary Schools and allows commuters to access Leicester and Nottingham easily, avoiding Melton town centre so is popular with tenants.
So I wondered how the values of the properties in Asfordby had performed when compared to Melton Mowbray.
I looked at modern 2 and 3 bed houses that had sold within in the last 5 years, to compare the prices achieved in 2011 and 2016.
Asfordby semis have seen an average increase in value of 15.5% since 2011. Melton Mowbray properties had seen an average of 15.25% in the increase in the value over the same period. This data is available from Land Registry and I could only draw from a small sample as I wanted to look at the recent actual sold prices.
There were a few larger properties that had seen capital growth over the same period of 30-40%.
It seems to me that you may pay a little less for a property in and around Asfordby but they still perform well on capital growth and are often better on the yield.
Any property investment should be researched so if you would like an honest opinion on what rent a property could achieve give me a call or pop into see me.