Historically low interest rates, a slow house sales market meaning selling prices are depressed, and more tenants than ever before meaning rents are rising. Is now the time to get back into Buy-to-Let?

With investors receiving next to no interest on their cash in the bank, the clever money is starting to look again at Buy-to-Let property. In Nottingham, investors are picking up properties at auction for prices more akin to the late 1990’s. Savills sale room get’s busier month-by-month and it’s not difficult to see why, in October’s auction a 2 bedroom flat sold for as little as £22,000, and there appears to be a never ending supply of traditional terraces in need of a spruce-up selling for as little as £40,000.

At these prices, even after a refurbishment and agents fees, landlords should be able to achieve an 8% yield, plus there’s the potential for capital growth with the properties in similar areas selling at the peak for upwards of £75,000.

Jonathan Detheridge from GO Property Services comments “we have clients currently looking to buy at auction. Nottingham City Council are currently selling-off a substantial tranche of traditional terraced properties in need of a little TLC, and investors are jumping in with both feet as auction prices are the lowest we’ve seen them for about 6 or 7 years. With a degree of refurbishment and redecoration these properties will let in the current market and provide a return of around £4500 per year even after our letting fees are taken into account – not a bad return on investment in today’s market and that’s without even thinking about capital growth”

However, whilst interest is high, current sales at auction are hardly inspiring with auctioneers accepting as little as £100 increments just to keep the bidding alive. A very real sign that the credit crunch is still deflating prices leaving the door open for canny investors to jump in and be one of the few lucky ones that have the resources to make a killing in a recession.

The next Nottingham Auction takes place on November 25th with 29 lots available. Investors seeking to purchase that need rental advice should call GO Lettings in Nottingham on 0845 226 0345 to discuss the rental potential this type of property presents. Visit the Savills auction site here

About Go Property Services.

GO Property Services provide a second to none residential sales and lettings service to property owners across the UK. We are members of the NAEA & ARLA and operate branches in Nottingham & Leeds. For more information visit www.go-property-services.co.uk

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