Monday, 30 March 2015

London Road Estate - 4.74% yield, with good capital growth

Good afternoon folks! Well after a fairly quiet couple of weeks on the investment front, we are now starting to see a few ‘spring shoots’, which certainly confirms that Spring is here and the investment properties are starting to flourish!

Our first property of the week is in Canterbury and it’s a three bedroom property on the London Road estate. Whilst it would appear to be ideal territory for a student let and those ‘tasty’ student yields, for the purpose of this exercise I will look at it on the basis of a standard family let. ‘Shock’ ‘horror’ I hear you shout, ‘not a student property?????’. Well, yes and no, it could be a student property, but with the current ‘over supply’ of student properties and again, a large number of such properties will not be let due to the lack of student supply, I would rather be honest and say take great care!

The property is a three bedroom semi, on the market for £215K with Miles & Barr. Whilst a bit dated, it’s only cosmetic and not a huge expense to ‘freshen up’ for the rental market. Such three bed properties will rent out at circa £850 / £875 per month, which will give you a yield of circa 4.74%. Whilst not quite our target figure of +5%, it’s still solid as these properties are in good demand for young families and will rent out easily.

‘So that’s the rent’ I hear you say, ‘but what about the capital growth for the area’. Well, over the past year and five years we start to see some interesting figures. If we look at the whole of Canterbury, the past year has only seen a growth of 1.65% and the past five 12.5%, but this area has seen a one year / 5 year growth of 3.55% and 14.07% respectively!!!!!!!

That’s surprised you! Check it out at and give the agent a call.

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.

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