In 2006 - 2007 a number of new developments completed in Dunstable. How have these performed since and are they a good buy for an investor as a Buy-to-Let ?
The developments that were completed at the height of the building boom of 2006 – 2007 in Dunstable are Watling Gardens to the South, Peppercorn Way to the North, Bramley Court/Russet Way to the East, Kiln Way further East near to the M1 and The Parklands in the centre of Dunstable behind the Grove Theatre.
For this article I will concentrate on The Parklands which is considered the premier development, has security gate access and allocated parking. It is a much sought after development located in the centre of Dunstable especially popular with young professional couples and the apartments are modern with balconies and entry phone systems.
These apartments were completed in 2006/07 and at the time a 1 bedroom apartment would sell for an average of £155,000 and a 2 bed apartment with ensuite would sell for an average of £170,000.
In February and June 2014 it was possible to pick up a 1 bedroom apartment here for £100,000 - £105,000 which one of our landlords did, but if you look now there are 3 available to buy and the average price has risen to £130,000.
If we look at the fortunes of the 2 bedroom apartments they are creeping closer to their original selling price in 2006/07 which was £170,000. Right now on Rightmove there are 3 available at £160,000. In March this year a 2 bedroom apartment sold for £152,000 and with the recent price rises we have been witnessing in Dunstable it is quite possible that these apartments will achieve their asking prices.
For an investor is an apartment in the Parklands a good buy ?
As I said at the beginning The Parklands is a much sought after development due to its location and apartments here always rent easily if well presented.
A one bedroom apartment will currently rent at £650-£675pcm and a two bedroom apartment £750-£775pcm giving a rental yield of over 5% after the service charge is included.
If you want advice on any investment property in Dunstable you are considering purchasing please contact me on 01582 343209 or email me email@example.com to talk to me about the potential rental value, suitability for the type of tenant you are after and my professional opinion on its suitability as an investment.
Daniel Bourke is the owner of Belvoir Lettings Dunstable and in his previous career in Architecture he was an Associate in a leading London Architectural practice