Another month of quality applicants have snapped up our homes, with many of them letting on the first day of appointments. In particular, an older build property on Laurel Avenue in Forest Town brought about a fantastic result when listing for a premium of £595pcm vs newer build properties that are currently on the market at only £50 more per month.
All types of properties have their own pros and cons, whether it be the construction or the space -typical with different property eras but looking at it from a yield perspective, you can see where you could potentially invest your money more wisely.
Laurel Avenue is in the up-and-coming area of Forest Town where new building is taking place locally. Not to mention the benefit of having a local supermarket/retail park that has improved over the years with the introduction of larger businesses moving to the area.
This will potentially aid rental values due to improved wages which are directly linked. As with a lot of the Mansfield area, Forest Town benefits from good transport links and local commuter routes such as the A60.
I will be comparing our rental property to one currently on the market for £650pcm on Sanderling Way where a similar detached property type recently sold £145,000. This results in just over a 5% yield.
Properties on Laurel Ave recently sold in the region of £115,000 – 125,000 delivering an approximate 6% yield and judging at the sold values in 2007 (£123,000) it looks like the capital is recovering well plus the initial outlay will be kinder to your wallet, even better if you negotiate an appropriate discount!
In terms of how quickly properties let in the area we had 10 viewings booked in for Laurel Ave and we could afford to be selective on who would be the most appropriate applicant. What would have made a massive impact on this rental is the fact there has been a new kitchen installed and generally neutral fresh décor throughout.
There is currently this property for sale on Laurel Ave. Although it is not quite like the one we advertised there is definitely room to potentially achieve a rental value around the £540pcm mark, and with an appropriate discount, you could achieve a decent rental yield.
The downside to the older properties are the new EPC laws that will come into power from April 2018 meaning that some will be illegal to let out. The upside to this is that some may have to sell their lower grade properties creating more opportunities for the savvy investor.
Do you have a property we could work our magic on? Give us a call on 01623 427 777 or email mansfield@belvoir.co.uk
