An investment landlord, who lives in Melton Mowbray, who attended our first buy to let event in 1999, recently asked this very question. He had been wise enough to invest in a property on Kings Road in 2000 and was considering where to invest next.
Sold house prices on Kings Road are 1 % above where they were 5 years ago which means they are at the same level as before the credit crunch hit. Purchasing a property now at the current average price of £ 111,000 and securing an average rental return of £525 pcm would give you a yield of 5.6%.
Victorian properties often require modernisation but this should be reflected in the purchase price and once the electrics, heating, windows and roof are in good order there should not be too many ongoing maintenance issues.
A lot has changed in the last few years since 2000 but it would seem the right property in this area could provide a good return and should offer stable capital growth. Many of the landlords we met at the first buy to let evening are still with us now and have seen their investments grow. The market is a very different place but there are still good returns to be had in Melton Mowbray.