Wednesday, January 11, 2017

Capital Growth in Bingham


If you are thinking of investing in property you need to consider not only the monthly yield but also the growth on the capital invested.  I was really pleased to see high levels of capital growth seen in many Bingham properties.

I concentrated my research on my preferred type of investment – the ones that will let on the first viewing and appeal to the right type of tenant – modern 2 and 3 bedroom properties.

There are a lot of properties in Bingham that were built around 10 to 15 years ago.  Built with efficiency in mind and which should continue to offer a low maintenance option for the next 10 years.

I found modern 2 and 3 bed properties that had been bought in 2005 and sold again in 2016 had seen an average of 28.75% growth in the capital over this time. When you consider during this 10 year period we have also had a double dip recession I think that’s pretty good going.

The rental income on these has also increased over this time.  Back in 2005 we would be getting £650 PCM for these 2 beds and now we are getting nearer to £800 PCM.

In Bingham itself you do need to be looking at investing between £175,000 - £200,000 in a property to see these levels of returns.

Looking further afield to, say Calverton, you can achieve a good yield on an investment of around £125,000.

The difficulty for investors is getting hold of these types of properties. They don’t come on to the market very often and they sell quickly. 

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