I’ve been asked the question on which properties make the best investments in derby a hundred of times, so after being asked again today I thought it was time to put this into my blog so my readers can know a trade secret which has been very successful for me in the Derby Property Market.
When considering investing in a property there are two things you should consider:
- Return on investment
- Capital growth
Now with 2/3 bedroom terraced houses being the most popular form of property investments in derby and successfully bringing in a healthy yield of around 6% per annum. It is a base to which portfolio landlords build on, as smaller investment amounts help spread their risk on investors’ money and give them more flexibility.
The attraction to this form of terraced houses provides a good cover for a hidden gem of an investment. This is a conversion of a terraced house into 2 flats. Let me give you an example in regards to the derby property market, here the average 2 bedroom terraced house in de23 or de22 sells at £65000 giving you a rental return of £400pcm. At least 40 of these properties have changed hands over this past year, yet a 2 flat conversion has remained on the market for a full year at £75000, it is currently let at £250pcm for each self contained flat, this is well below market value, these flats combined should give a return at minimum £600pcm which is just under 10%.
These properties are a safe haven for investors, even if one flat is vacant it is enough to cover the mortgage repayments for both through the one that is tenanted, however borrowing on these types of properties can be difficult which maybe one of the reasons they are overlooked.
If you have come across one of these properties and want to discuss please email me, or even if you have seen another property you are interested in.