Saturday 28 February 2015

National Landords Association



What a difference a day makes……. yesterday was a beautiful day and today it’s now back to the winter blues…. This being said, let’s hope the Rugby score on Sunday is going to be a victory for England (apologies to my Landlords in the Emerald Isle!), that will certainly make the sun shine in my little world!
Anyway, back to business or should I say lack of…. It’s a bit strange for a Saturday morning without any decent investment properties coming onto the market, but then again this could be another indicator of the market slowdown that I mentioned the other day. However, another bit of news has caught my attention that I would not only like to share with you, but also recommend you should attend.
The National Landlords Association (NLA) is an excellent organisation for not only existing Landlords, but also great for anyone looking to become a Landlord. They really know their subject and offer great assistance to their members. The local representative for Kent is Marion Money, whom I have met on a number of occasions and whilst being a ‘fountain of knowledge’, is also a Landlord herself, which means that she has a great understanding of the market, plus all of its advantages and pitfalls!
On the 16th March 2015 at 17.30hrs they will be holding a Landlords Information Evening at the Darwin Conference Suite, Darwin College, University of Kent. CT2 7NY. The meeting lasts for about three hours and they normally have some great speakers with very useful advice / information / updates on regulation. It’s well worth attending.
Check them out at www.landlords.org.uk 


Friday 27 February 2015

Faversham - 2 bed - £185K - yield of 4.86%

What a fabulous day today! The sun is shining, the birds are singing and the investment properties keep on coming! Today, we are off to Faversham where a property has just come on this morning with Miles & Barr and from a couple of calculations on my note pad, it looks a good investment.
 
It’s a two bedroom house in Cremer Place in Faversham and is on the market for £185K. From the details it looks like it’s available to rent immediately upon completion and has been completely refurbished throughout.
 
In the past few months we have seen a really good demand for such properties and we would estimate a rent of circa £750 per month. This coupled with the purchase price would deliver a respectable yield of 4.86%.
 
Out of interest, I have taken a look at the history of this property to see how it’s performed in the last few years since it was purchased by the current owner in 2007. It was purchased back in June 2007 for £142K, which if sold at the current asking price would give the owner a return of circa 23%. It would also appear that this was an investment Landlord, as our database shows that this property was rented for £700 back in 2013, therefore our predictions for the current rent is there or thereabouts. The database also shows that in the past year, it’s seen an increase of circa 7.43%, which again is positive.
Check it out further at http://www.rightmove.co.uk/property-for-sale/property-50128124.html and give the agent a call.




 

Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Thursday 26 February 2015

Herne Bay - £95K - 7.8% yield!! (yes, you have read this correctly...........)

Good afternoon everybody. On my morning check of the market, the following property not only caught my eye, but made me look again to make sure the price was right! It’s a snip!!
 
It’s a one bed apartment in the High Street at Herne Bay and the asking price with Your Move is £95K. As ever, these properties are in constant demand and will let out all day long for circa £550 / £600 per month. What’s more impressive, is that it’s been refurbished to a good standard, which again will make it very attractive for the rental market. Therefore, it's good to go from day one!
 
Now here comes the interesting part….. if we were to calculate the yield based upon a conservative £550 per month, the yield is nearly 7%, yes 7%! At £600 per month, we now get 7.58% which is a really serious yield!
 

 


Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Wednesday 25 February 2015

Is the Canterbury Property market holding its breath over the General Election?

Has apathy hit the Canterbury housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand? Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier.
 
Looking at Canterbury, in the summer of 2014, each estate agent in Canterbury had on average 20 properties on its books (as there were a total of 540 properties up for sale in Canterbury at the peak in the summer just gone). Our research shows that number plummeted to 15.7 per agent in December.  While the lack of new properties coming onto the market in the later months of 2014 in Canterbury pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.
The length of time a property takes to sell has ever so slightly increased over the last few months. Two bedroom properties in Canterbury are now taking 49 days to sell, three bedroom 46 days, four bedrooms 38 days, but here an interesting figure, one beds are taking on average 102 days to find a buyer.
2015 will be the year of the selective mover.  With only 518 brand new properties a year being built in Canterbury since the turn of the Millennium, this woefully low and insufficient number of new buildings in the City over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.
The heat has gone out of the Canterbury property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014, but it most certainly isn’t icy cold. That might mean Canterbury landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy  or the election, if people don’t buy property they rent.
The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar! In fact with less properties coming on the market in Canterbury, that will keep prices quite stable.
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 property to buy (or not as the case may be) to give you what you want from your investment. Email me on david.anthony@martinco.com

Thursday 19 February 2015

Canterbury - £125K with a yield of 6.24%

Morning all. Today, we are back into Canterbury where we have found a great investment property that has just come onto the market with Miles & Barr, for a very attractive £125K.
As ever, these one bed properties are in great demand either for young professionals or a student couple. Even better news with this property, is that it already has tenants paying rent at £650 per month, which gives you a great yield of 6.24%. This property won’t be around for long! In addition, they are also offering a share of the freehold, which is another tick in the box.

 
Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Wednesday 18 February 2015

Herne Bay - £135K - potential yield of 6.67% - does it get any better!!!

What a fab day today! The sun is out and so are the bargains….. A great investment has just come onto the property market in Herne Bay. It’s a two bed apartment for £135K with Kimber Woodward and it’s a real cracker.

Let’s start with the price. At £135K it’s a great bargain and at this price will not be around long. The location is brilliant, as it’s close to the major road infrastructure of the Thanet Way, creating easy access for young professional tenants. It’s age / condition is also excellent, so it’s ‘good to go’ from an investment viewpoint.

Turning to the rental aspect of the property, I’ll take a real conservative viewpoint and state that the rental figure would be (at the very worse!) £700 per month, which will give you a brilliant yield of 6.22% and at £750 per month, it would take the yield to a cracking 6.67%.

What about the capital growth? Well, these apartments in Ryder Court were built circa 2009 and the growth in the past year has been 7.81% and in the past five years it has been 14.42%. Try getting that at a building society!



Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Godwin Road property market outperforms the Ethelbert Road property market by 144%

 
I spoke about a conversation I had with a landlord, who lives in the Ethelbert Road just off Old Dover Road, he took me up on the offer of an informal chat about the Canterbury property market the other week after he read the ‘Canterbury Property Blog’.  We got talking about investing in Canterbury property and how different areas of the city performed again other areas. Investing in Canterbury property is a balancing act between capital growth and yield. On the one hand going for strong capital growth seems an obvious choice because of the potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties tend to be low meaning if you are taking a high percentage mortgage, the rent doesn’t pay the mortgage payments.
 
It became really interesting when we compared his area of Ethelbert Road against the Godwin Road area, where he was brought up in the 1950’s. Those ‘Arts and Crafts’ five / six bedroom detached houses on Ethelbert Road have a current average value of £876,300 and rent for approximately £2,300 per month. This would give our landlord a yield of 3.14% per year .. very reasonable indeed. Until you consider those ex-local authority one bed apartments in the Godwin Road area, which sell for around £98,400 and let, depending upon condition for around £630 per month, a yield of 7.68% per year, which is a 144% proportionally higher yield.
 
However, as I said a few weeks ago, yields are not everything in property investment. Another is how the value of the property goes up over time. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term. The average values of one bed apartments in the Godwin Road area in 2000 was £33,200, therefore they have risen by 196%. So, one would expect Ethelbert Road property values to have risen more.
 
Quite the opposite, average values have only risen by 125.1% since 2000. However, percentages don’t tell the whole story. Firstly, the Godwin Road was probably a Right to Buy council property, which are sold at discounts. Also, whilst an average homeowner, if they sold their property today in the Godwin Road area would make around £65,000 tax free gain, a home owner in Ethelbert Road would, on average, have made and impressive £490,000 gain.
 
Now I know there aren’t many landlords that would buy a large 5/6 bed detached house on Ethelbert Road to rent out. It’s just that looking at the Canterbury property market in more depth enables me to give you the best advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, please come and see me at our office in Watling Street in Canterbury.
 

Monday 16 February 2015

Faversham - 5.29% yield - only £85K.................yes, £85K


Great start to the week! This morning, my ‘divining rods’ are back pointing in the direction of Faversham for today’s investment. These properties rarely come onto the market and when they do, they’ll make a great addition to an investment portfolio or an excellent starter property for a new portfolio.
It’s just come on the market today with Miles & Barr for a price of £85K. Yes, you read right £85K. OK, its ground floor studio apartment, but all of the main principles of an investment property still remain, with one bedroom properties being in great demand. How much are they in demand, I hear you say? Well, these studios / one bed properties rent for circa £350 to £500 per month in Faversham and last week, Rightmove shows that they had 2124 searches for such a property criteria. So, 2000+ searches, with only 4 properties on the market as of today, confirms their strong demand.
So the demand is strong, what about the rent and yield? Well, if we were to say that the rent would be circa £375 per month, which is on the cautious side, then this would return a decent yield of 5.29%.

 


Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Saturday 14 February 2015

Superb 4 bed in Herne Bay - whats the demand like?


Good afternoon to you. Today, we are looking at larger properties on the market and testing to see if they can make just as good an investment as some of the smaller one and two beds in the area. Not only are they a good investment, but what is the demand for similar properties, in a specific area?
The property that we are going to look at is an excellent 4 bedroom property that has just come onto the market with Kent Estate Agencies in Herne Bay. From the photographs, the property has been lovingly restored by the owners and is immaculate. The pricing is about right, give or take a few thousand.
So, are these properties really in demand? To assist us, let’s take a look at the demand for similar properties in Herne Bay in the past week. It’s not an exact science, but Rightmove is telling us that there were a massive 2657 searches last week for a similar property to rent. How many properties were there on Rightmove that matched the search criteria? One, yes just one! I think we have answered the question!
OK, so we now have the demand, what about the yield? Well, a four bedroom, of such a standard should rent for circa £1000 per month. In comparison, that lonely other 4 bed to rent in Herne Bay was on the market for £995 per month, so we also know that we are there or thereabouts. The combination of price and rent, will therefore give you a yield of 5.11%, which is above the 5% benchmark.
Finally, and to conclude, let’s take a look at the capital growth for the property against Kent as a whole. Again, further good news. In one year, similar properties in the area have seen a growth of 7.81%, whereas the Kent figure is 6.97% and over the past five years the growth has been 14.41%, against a lower growth of 13.63% for Kent.
 

 
Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.
 
 

Friday 13 February 2015

Are there any property bargains in Canterbury?



Newspapers report property prices in England have soared to a record high – sparking predictions that the country is facing another dangerous property bubble. Values in Kent are still 1.35 per cent higher than their previous peak in the autumn of 2007. Even with that news, I have been speaking to a couple of landlords who had concerns in some quarters that the state backed schemes to boost the supply of mortgages such as Funding for Lending and Help to Buy are inflating a new housing bubble. Those landlords are asking if this means the end of property bargains in Canterbury?
Well, if you do your homework, there are still plenty of good buys in Canterbury. Don’t expect them to come on the more popular streets in the city. The first rule of a buy to let investment is that it isn’t you that is living in the property, it’s the tenant, and there is always demand for every street in Canterbury.
Back in the early spring of 2013 a three bedroom semi detached extended bungalow, located in a lovely cul-de-sac location in the sought after village of Littlebourne, came onto the market with an asking price of £190,000.  The property was pleasantly presented inside although a little dated and had probably been occupied by someone of maturing years. I kept the photos of the inside and it had a white modern bathroom suite and a kitchen that was not unpleasant.  It sold in the Summer of 2013 for £184,500. 
Sixteen months later, with what I can see was just some inexpensive new carpets, some tiled and wood flooring, emulsion on the walls, a basic kitchen refurbishment and a bit of modern furniture, it sold again for £250,000 in the autumn of 2014 just gone.  In essence the new owners spent, in my opinion, no more than £10,000-£12,000 but made a profit after costs of £40,000 to £45,000 increasing the value of the bungalow by 35.5%.  Over the same time frame average property prices in Canterbury only rose by 8.3%.
By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion freely to anyone who asks, be they an existing landlord of ours or of another agents. I will also give it to anyone thinking of becoming a buy to let landlord for the first time.
I do not charge for this service, because if I offer you an honest and straight forward opinion, you could consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door Watling Street in Canterbury to chat about the ups and downs of the property market in Canterbury.

Wednesday 11 February 2015

We like this one – Herne Bay – 5.12% yield

Morning all. Todays ‘trawl’ has picked up a few properties and this one in particular has caught my eye.

It’s in Herne Bay and again, it ticks quite a number of investment boxes. It’s just come on the market with David Clarke for £169,995. So starting with the price, this looks about right, then it’s in a great location, i.e. close to the Thanet Way for ease of access for a daily commute in either the direction of London or Thanet. In addition, there’s no chain, plus the property looks in very good condition and comes with gas central heating. As this is a leasehold property, then consideration needs to be given to the length of the lease, plus the annual maintenance / ground rent charges, which come in at 113 years and £1000 respectively.
Again, such properties are in great demand and will rent out for a minimum of £725 per month, which will give you a decent yield of 5.12%, which again is not too bad.
Check this one out at http://www.rightmove.co.uk/property-for-sale/property-33578454.html and give them a call. I don’t believe that this one is going to be around for long!




Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Monday 9 February 2015

Great property. Solid yield – Faversham 5.02%


A great start to the week, with a property that ticks all the boxes. It’s a good location, great price and will let all day long, as a great family home.
It’s just come on the market with Invicta in Faversham at £215K. It looks in great condition and is good to go, from day one.
Does it make a good long term investment? Well, I thought it best put my theory into practice and delve into the database and check out some facts and figures regarding the properties location.
If we look at the postcode for the property and look back over the past year, plus the last five years we start to build up a picture regarding its position as an investment. The results were very positive.
For example, if we were to benchmark the property against the whole of Kent, we find that property has increased in value over the past year by 8.58%, whereas Kent, as a whole, has only increased by 6.80%. Now, if we manage the same exercise over the past five years, the variation becomes even more pronounced, as the whole of Kent showed an increase 13.42%, whilst this postcode increased by an impressive 17.04%. Again, this adds further proof to my reckoning about the potential of Faversham.
Enough about the capital growth, what about the rental value? Well again, further good news. These 3 bed properties will rent out for at least £900 per month, which in turn will deliver a yield of 5.02%. Happy days!
Check out the property at http://www.rightmove.co.uk/property-for-sale/property-49230497.html
and give the agent a call.

Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Friday 6 February 2015

Windy Friday! Faversham - 5.12% yield

Good afternoon readers. Bit of a windy day out there on this cold Friday afternoon. Having said that, look what the winds just blown in…………….it’s a bargain in Faversham.

It’s just come on the market this morning and yet again, it’s ticking all the right boxes with regard to the rental market. It’s the right place, right price and also good condition. Just waiting for a tenant to move in!

As ever, these properties are in great demand with two similar properties being rented by us in the past week in Faversham. With a conservative estimate on the rental figure, I would reckon that this property should rent out at a minimum of £725 per month, which at the asking price of £169,950 will give you a yield of 5.12%.

Check this one out at the following link and give the agent a call http://www.rightmove.co.uk/property-for-sale/property-48259642.html
 


Should you wish to discuss any other specific properties or just a general chat re the current market, please feel free to contact me on 01227 455717 / canterbury@martinco.com or call in and see me at 23 Watling Street in Canterbury.

Wednesday 4 February 2015

Property Market: Canterbury –v- Herne Bay –v- Whitstable


 
Within the area covered by Canterbury City Council are the towns of Herne Bay and Whitstable.  In fact I have a few landlords from Whitstable, one in particular who has a decent portfolio of buy to let property in Canterbury, Whitstable, Herne Bay and other parts of Central / North Kent.

The two towns and the city of Canterbury are different when it comes to their property markets.  The most expensive area is Canterbury where the average value of a property is £290,200, with the cities excellent road and rail links and good choice of schooling.  The town of Whitstable has an almost identical average value of £289,100, whilst neighbouring Herne Bay is over one fifth cheaper with an average value of a property currently standing at around £230,800.

In the last 12 months, the average value of a property in Canterbury, Herne Bay and Whitstable has risen by roughly the same amount (Canterbury £13,500, Herne Bay £11,500 and Whitstable £11,100). However, the pound note amounts do not tell the whole story, as average property values are so much different especially in Herne Bay.  As a percentage, values in Whitstable have risen by 4.1% over the last 12 months and in Canterbury by 4.9%, whilst Herne Bay has impressively risen by 5.2% over the same time frame. 

However, when you look over the last five years, the tables are turned.  Herne Bay property prices have risen by 12.7%, whilst in Whitstable they have risen by 14.1%, but in Canterbury they have risen by an impressive 15.6%. It just goes to show that you should never judge a property market by just the average value increase in the short term, but also in the medium term. Then again, you should also consider the yields, long term capital growth and potential void periods obtained from your property investment.

By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion at no charge to anyone who asks, be they an existing landlord of ours or indeed another agent. I will also give it to anyone considering becoming a buy to let landlord for the first time. I do not charge for this service, because if I offer you an honest and straight forward opinion, you may consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door on Watling Street in Canterbury to chat about the ups and downs of the property market in Canterbury.