Tuesday, 23 December 2014
Faversham - luxury 2 bed apartment - £235K
Yesterday, one of my Landlords called into the office (resting his legs from Christmas shopping.....) and we got chatting about a property that had caught his interest in his home town of Faversham. It's a 2 bed apartment in Court Street, which is on the market with Ward and Partners for £235K. From the pictures and description, it looks a great property, with a pretty high spec. He was keen to purchase the property and then rent it out. We started to bounce some figures about and the results were quite interesting.
I explained to him that yes, it was a 'fairly good' investment, but in comparison to Canterbury, the rental yield would not be too brilliant, i.e. circa £900 per month giving a yield of circa 4.60%. Whilst slightly disappointed, he then said it's not too much the yield, more about the capital gain over, say, the next 5 to 10 years and how would that compare, with say Canterbury, where he has a number of other properties.
We looked at the last 5 years between this area and CT1 in Canterbury and surprisingly, the capital growth in Faversham was better at 16.92% and 16.65% respectively. He then asked me to look at the past year and the results were even more surprising with this area of Faversham seeing an increase of 7.15%, compared to CT1 achieved a lower 5.90% in comparison.
All of this goes to show, that yields and capital growth will vary from area to area, and investors need to fully understand what their goal is.
Each Canterbury (and Faversham) landlord will have different needs and requirements in his or her property investment. We are able to give an objective and unbiased opinion on what (and what doesn't) make a good property investment. Knowing what has happened to values in different towns / cities, enables us to spot any trends or opportunities for buy to let landlords. If you would like to discuss my thoughts on the rental markets, feel free to pop through the door of our offices Watling Street or send me an email to email@example.com