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.
Take a look at the property at http://www.rightmove.co.uk/property-for-sale/property-50583908.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 / firstname.lastname@example.org or call in and see me at 23 Watling Street in Canterbury.