Looking in last weeks Melton Times I was pleased to read that the Old Dalby Business Park has been bought by a Birmingham based Property Company. The article stated that they saw an opportunity to add value by working with existing occupiers and the site has provision for further development on the site.
The location is becoming a real business hub with easy access to the A46, Nottingham and Leicester this site has attracted more development in the form of the Old Dalby Enterprise Village, the existing Crown Business Park as well as the Old Dalby Business Park. The site is home to established business offering employment for local people and further investment is a great thing for our area.
Since we started letting property in 1998 we have managed houses in and around Old Dalby and one of the popular developments are the Queensway houses, the former MOD housing. Although this estate is outside of the main village, Old Dalby boasts a good Primary School and a Pub. Queensway Old Dalby offers affordable living in a rural setting and continued investment in this area will keep up the good levels of capital growth.
There have always been buy to let investors renting out property on this estate. I think this goes back to its military roots. When the site was closed in the Mid 1990’s and the houses sold off, the two beds were going for around £40,000. Investing in property has always been popular with people working for the Armed Forces as families may regularly move between bases and quarters but owning a property elsewhere and renting it out offers security for the time they may leave.
I mentioned in my property blog that a 2 bedroom property is for sale on Queensway Old Dalby with Harrison Murray and is a prime example of a good buy to let investment. It is a large two bedroom property and is on the market for £132,500.
Looking at the Buy To Let Mortgage calculator on our Belvoir Lettings website (www.belvoir.co.uk/meltonmowbray) if you were to put a deposit of £30,000 down the Nationwide are offering a tracker mortgage for 1.54% for 2 years, the repayments initially would be £417.97. When you consider the rent we could achieve would be £550 pcm this could give a comfortable margin for future repairs or costs and I would expect rents to continue to rise over the coming years if the supply of property continues to be so low and demand so high.
Please be aware there may be mortgage arrangement fees to pay and when purchasing a property there is additional stamp duty to pay – the above is an example only. Please seek independent financial advice before making any investments.
I think investors should choose wisely when purchasing property at the moment with the uncertainty Brexit brings. Those with the ability to secure funds for a property purchase may be able to get a good deal but should consider the future, a location like this is likely to succeed and over the long term achieve capital growth.
Visit www.meltonmowbrayproperty.com for honest opinion on rental returns.