Wednesday, 24 December 2014

Whitstable v Herne Bay - Clash of the titans?




On Tuesday, I met with a charming couple in Whitstable who asked me to take a look at their property on Island Wall with regard to rentals. As per usual, we started to discuss the local area and property values etc and they asked the question regarding property values in their location versus other areas, for example Herne Bay. I replied that property values in his area had exceeded all expectations and would of out-performed Herne Bay easily. Upon my return to the office, I decided to qualify my claim to ensure this was indeed the case. The results were very interesting.
For a degree of comparison, I decided to look at Island Wall, Whitstable compared with Central Parade, Herne Bay. OK, it's not a direct comparison, but at least we have reference point. The average value of a property in their post code on Island Wall was circa £413K, in comparison to £205K in Central Parade. Not an exact science, as the properties are different, i.e. houses v apartments etc. The next test was to take a look at the capital gains in both areas, over the past 1, 3 and 5 years and it was this set of data that proved to be of interest. Yes, I was right, Island Wall has exceeded Herne Bay in growth, but only marginal, as per the following stats.

Island Wall, Whitstable 

1 year  +6.47%         3 years   +16.73%        5 years    +15.37%

Central Parade, Herne Bay

1 year  +5.56%         3 years   +16.27%        5 years     +13.64%

The above just shows that although Island Wall has performed well, Central Parade in Herne Bay was not too far behind, which just goes to show that investors need to keep an open mind on areas to invest in, as there may well be other areas to take a look at.
Incidentally, the above figures also confirm my view of keeping an eye on Herne Bay!
Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which investment to buy (or not as the case may be) to give you what you want for your investment (yield, capital growth or a bit of both). If you are a Landlord, new or old, pop in and see us at our offices on Watling Street for a chat or email me direct on david.anthony@martinco.com