Many people in our part of Kent, over the last few years, have seen the buy to let market become all about nest egg investment. It is fuelled by pitiful interest rates on building society savings. It reflects the fact that building society savings accounts are paying half a percent interest and pension returns are struggling to match expectations, turning more and more people into landlords to secure their future. So what can you expect from your rental property investment?
In the short term, rental yields are important, and in Canterbury, the average annual yield is in the order of 3.5% to 4% per year. However, that is based on averages, and as most landlords in Canterbury tend to buy starter home homes, apartments and terraced houses, the majority of which are achieving 4.5% to 6.5% per year depending on location and price in the town.