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.