Buy To Let Areas In West Yorkshire That Put Money In Your Pocket

Buy to let property in Wakefield

In this guide I'll tell you the best areas of West Yorkshire to pick up properties for buy to let in 2014. I'll also give you my tips on what to avoid and how to ensure you make a great return on your investment.

We're both a Lettings and Estate Agents for Wakefield and Leeds, so please make use of our knowledge of the local area. We are here to help ensure you achieve a successful buy to let investment.

Before we jump into the best places for Buy to Let in West Yorkshire lets define what a good buy to let investment is. You can use it to measure any property in any area.

What's a good return on buy to let?

Briefly a good property for buy to let needs to be in an area with strong rental demand (will it rent?) and inexpensive cost relative to the rent you'll be getting (what's the return?). The way most people measure return on buy to let property is by yield.

Yield = (Annual Rental Income / Total Purchase and renovation costs) x 100

e.g. If you buy a house for £70,000, spend £10,000 getting it ready for the rental market and it lets for £525pcm your yield would be:

= (6,300 / 80,000) x 100

= 7.88%

This sort of return is quite achievable in our region. Based on our research the magic number you need to beat in order to have a cash positive rental property, that puts money in your pocket, is a 6.5% yield. Any less and it's very likely your property investment will end up taking money out of your pocket not putting it in. Which of course, is not what we're after. Avoid these properties.

So where are the most popular rental areas?

Our sister company Trinity Lettings has identified the most popular areas of rental demand in the Wakefield and Leeds areas for 2014 as:

In Wakefield:
Outwood & Lofthouse
St Johns

In Leeds:

Prime City centre (within "the loop")
Chapel Allerton

These are established or up-and-coming areas with good facilities such as supermarkets, schools etc. Their excellent transport links also make them good locations for commuters and the properties tend to be reasonably priced.

For example, we tend to let a typical 2 bed property in Outwood for around £500- £550 a month depending on condition. Some of these 2 beds can be picked up for under £100k, meaning you're getting a return in the region of 7% in a good, up-and-coming area.

How to get the best return on your investment

It's important to note that just because these areas have high rental demand doesn't mean it's enough alone to invest there. Ultimately there is some rental demand everywhere and it comes down to your individual property's condition and the price set.

However, follow these guidelines to make sure you get the best return on your investment.

  • Make your property popular. Buy or renovate your property so that it's in a superior condition to the competing rental stock in the areas price bracket
  • Set a budget that includes both the buying price and renovation costs and stick to it. Don't spend too much
  • Do your research for the area so you know your likely rental income. We can help you with that
  • Be realistic - Make sure your expected yield is above the 6.5% magic number
  • Use our handy online Property Search tool to find a great buy to let opportunity in one or more of these popular rental areas. 

Or simply call us now on 01924 609 811 to find out our very latest Buy To Let property opportunities. 

You can share our advice with others; please click on the social media buttons at the top of the page.

Other advice you may find helpful:

Buying Property to Renovate and Sell

DIY Letting vs Letting Agent - what's right for you?

How to Minimise Void Periods - 6 Top Tips for Landlords

Published on 23 May 2014

Source Dominic Woodward

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