Many people forget that an investment in a property to rent is not all about the rental yield but also the capital yield on the property is also a major factor.
Here are the figures showing increase in prices in the LU5, LU6 and LU7 areas in the last year and compared to 5 years ago. LU5 & LU6 cover Dunstable & Houghton Regis and LU7 covers Leighton Buzzard.
LU5
Last 3 months up 1.93%
Last 6 months up 6.23%
Last 12 months up 6.8%
From 5 years ago up 17.15%
LU6
Last 3 months up 2.05%
Last 6 months up 6.45%
Last 12 months up 7.58%
From 5 years ago up 16.83%
LU7
Last 3 months up 1.93%
Last 6 months up 6.16%
Last 12 months up 6.55%
From 5 years ago up 16.50%
2 bed properties are the most sought after so here is an example of what is available in each postcode and your potential rental yield.
LU5
2 bed flat for sale in The Mall for £110,000. Rental value £600 – £650pcm Rental yield 6.5% – 7%
LU6
2 bed flat for sale in Abbey Mews for £124,995. Rental value £625-£650pcm Rental yield 6% – 6.25%
LU7
2 bed flat for sale in West Dock Leighton Buzzard for £180,000 Rental value £750-£775pcm Rental yield 5% – 5.2%
Is there still a bargain to be found ? If you look closely they are there.
Right now there is a 1 bed apartment available in Bramley Court Dunstable. Usual price for a 1 bed is around £100,000 and this is marketed at £99,950 but you have to read the description. It must be repossession and the description for the bedroom with an ensuite tells you it was originally a 2 bed apartment and the owners removed a dividing wall to make one large bedroom. Put the wall back and doors back to make a 2 bed with ensuite and it will be worth £125,000 – £130,000. The cost of the work ? Maybe £1,000. It currently has an offer of £102,520 and must be worth a look !
If you want advice on your first or next property investment, come and talk to the team at Belvoir Dunstable.
