Investment alert - Herne Bay - yielding 6% on the rent!

At the moment, the 'bargains' appear to be coming from both Faversham and Herne Bay, as yet again another property has just come on the market in Herne Bay which is a real 'cracker'!!

It's just been put on the market with Miles & Barr and is being offered at £140K. As I have said many times before, such properties are in great demand by Tenants and the aspect that I love about this one, is it's location with great access to the Thanet Way. This makes it great for young professionals who lead busy lives and need to have such access.

The property looks great and would be ready to let from day one which is another tick in the box.

These will rent out at a minimum of £700 per month, which in return will give a yield of 6%, which is fab!

Check this one out at http://www.rightmove.co.uk/property-for-sale/property-32836707.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 or call in and see me at 23 Watling Street in Canterbury.

Faversham - just been reduced - yield 5.33%

We find ourselves back into Faversham for todays 'hot tip'. Interesting to note that in last Fridays Guardian, even they are saying 'Lets move to Faversham' (see the following article at  http://www.theguardian.com/money/2014/oct/24/lets-move-faversham-kent-tom-dyckhoff ) and even more interesting, their 'bargain of the week' has already sold!

Anyway, lets take a look at today's property bargain. It's located in Cyprus Road and has just been reduced down to £179,995 with Miles and Barr in Faversham. Again and very similar to the Guardian property mentioned above, these properties are in good demand. A good letting agent should get circa £800 per month for one of these properties, which would give an investment Landlord a yield of 5.33%.

Check out the property at http://www.rightmove.co.uk/property-for-sale/property-48390980.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 or call in and see me at 23 Watling Street in Canterbury.

Property Values along A2

In a previous article I said that average property values in Canterbury had risen by £24,900, taking the average Canterbury property to £294,600 (a rise of 9.2% over 12 months). However, the A2 has other towns and cities along its length and as a landlord one must consider other towns and cities to invest in. One town along the A2 is Faversham. An average property in Faversham has seen an increase in property values by around £11,500 over the last 12 months, taking an average property up in values by 4.5% up to £265,800.  Sittingbourne has also seen some modest property value increases, taking the average property from £217,400 a year ago to £225,300, a £7,900 increase or a 3.6% rise.

In a South Easterly direction, we get to Dover, where average property values have impressively risen by £13,800 to £199,200. Even when you consider that property values in Dover are quite low, this still a rise of 7.4% in the last 12 months! Interestingly though, you have to go to Blackheath in London (still on the A2) to get a better increase in values, where there they have risen by 14.89%, but that is over 54  miles away, and I don’t know about you, but most landlords do tend to like properties to be close by where they live.

I find it amazing all these places along the A2 – Sittingbourne, Faversham, Canterbury and Dover all within a matter of a few miles of each other, can experience such variations in property prices. With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £10,000+ for the deposit and fees, I can only see greater demand for rental properties in Canterbury, which will mean more people will continue to buy property for Buy to Let, and where there is greater demand, the price tends to go up. This however, is only my opinion.  If you want to chat about any matter relating to property in Canterbury, pop in and see me or one of my team in offices on Watling Street in Canterbury for a chat or email direct for any opinion on david.anthony@martinco.com

Strange but true.......... Canterbury Yield of 7.44%

Readers of my blog will often see yields of 5% or even 6%, but it's somewhat rare to see yields close to 7.5%!! It's a real belter this one!

 

It's just come on the market today for £125000 with Foundation via Zoopla and is located to the west of Canterbury. These properties are in good demand and will rent out for circa £775 per month, which kicks out this yield of 7.44%. From the photographs it looks OK and should require the minimal of works to get onto the letting market.

Check this one out and give them a call at http://www.zoopla.co.uk/for-sale/details/34975790#PjIlRu6ZDi0A1Dia.97 

 

 

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 or call in and see me at 23 Watling Street in Canterbury.

Canterbury - Inside City Walls - Yielding over 5.5%

Morning all, on this bright and sunny morning here in Canterbury! A bit of a chill in the air, so winters on it's way.....

 

Today, we are back into Canterbury for todays hot investment tip and this morning I have found a good property in an apartment block that does not come onto the market that often.

 

It's been put on the market by Locate and is being offered for a figure of just under £140K. I suspect that it's also quite likely that there is an offer to be made, so the purchasing price could drop a few more thousand.

 

As previously mentioned in other blogs, these one bed properties, inside City walls, are in high demand and will rent out for circa £650 per month, all day long, with good quality tenants.

 

The above being the case, calculated on the above figures, this property should give you a yield of circa 5.57%, which again is above the benchmark 5%.

See further details at http://www.rightmove.co.uk/property-for-sale/property-48075776.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 or call in and see me at 23 Watling Street in Canterbury.

13.86% per year return on investing in Canterbury property

I was talking to a landlord from Wickhambreaux the other day about the Canterbury property market, following my recent articles in the Canterbury Times. With all the news about house prices rising, he wanted to know what had happened to average property prices since the New Year. According to my calculations, the ‘average value of a property’ in Canterbury is now £294,600, which is a rise of £3,300 from the figure two months ago of £291,300 (a rise of 1.13%). Now by my calculations, the average rent being asked in Canterbury is £1,124 pcm, which means the yields / annual return are an impressive 4.6% per year.  Since August 2013, the average value of a property in Canterbury has risen by 9.2%, meaning landlords achieved an average annual total return of 13.8%.

When comparing this to what you get in return from banks, buy to let could be a good investment for you. As I reminded another landlord the other day from Tyler Hill, the Canterbury property market has certainly changed since 2001. At the turn of the Millennium, of the 55,584 households in the City and immediate villages (including Whitstable and Herne Bay), 6,124 of those households (or 11.02%) were privately rented. Ten years later, and 5,187 new properties had been built in Canterbury/Whitstable/Herne Bay, but most of those had been bought for Buy to Let; because by 2011, there were 10,665 properties that were rented out to tenants .. that’s a lot of rented houses! That means 17.5% of the households in Canterbury/Herne Bay and Whitstable are privately rented whilst the South East average is 14.7% and the National average is 15.6%.

Don't get me wrong, there are pitfalls. My message to all the people of Canterbury, be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple – take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't. Even if it's not from ourselves, there are still a few regulated agents in Canterbury who are well placed to advise on whether the property you're considering will rent, and at what potential price. We're certainly more than happy for you to pop in (as I am sure they are) and see me at our office on Watling Street in Canterbury for a chat or email me direct for any opinion on david.anthony@martinco.com

Herne Bay 1 - Padstow 0

Hello again 'prop pickers'.. Sorry that I have not been posting for a few days, but I have just returned from a week away in the West Country. Interesting to note that there are a number of 'sensibly priced' properties to be had down there and their are quite a few that are off the 'Richter Scale' in regard to pricing! We sometimes think that we have pricing variations within Kent, but in Cornwall it's bonkers, especially around the Padstow area. Mr Rick Stein has a lot to answer for!!


Anyway, back to business. Just a few weeks ago I wrote about a great property that came on the market in Herne Bay. Incredibly, another one came on this morning in the same building at £165K with  Kimber Woodward.


Again, it looks great, as a) it's simply stunning, b) these properties are in great demand and finally c) it's got a great yield at 5.82%, with a rental figure of circa £800 per month.


For the rental market, such properties are always in great demand due to their location, i.e. close to the railway station, therefore great for professional commuting couples.

And its CHAIN FREE!!

Check it out at http://www.rightmove.co.uk/property-for-sale/property-31595301.html and give them 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 or call in and see me at 23 Watling Street in Canterbury.

  

 

7.43% Yield - This Canterbury property is not one to be missed!

Every now and again we see a property come onto the market which screams out for investors, with this one ticking all of the boxes.

It's just come on the market for £105K with Locate and I am sure will  not be around for long. These properties rent out for circa £650.00 per month and are in great demand. These figures combined gives you a monthly yield of 7.43%, which is great!

Check it out at http://www.rightmove.co.uk/property-for-sale/property-48815882.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 or call in and see me at 23 Watling Street in Canterbury.

Canterbury property prices are 21.9% lower than the 2007 property boom

Some landlords have been speaking to me recently about stories in the press and their concerns about booming house prices and the next housing bubble in Canterbury. In the past few years, if you were going to be buying soon in Canterbury, it was vital to ensure you build in some capital growth by buying cheaply or finding a way to add value.  Interestingly, property values in Canterbury have increased by an impressive 9.2% in the last 12 months and in the last six months, properties have been going for their asking prices, some over the asking price.  So are Canterbury properties too expensive?

Looking at the market and looking at every property sale in Canterbury that sold in 2007 and again in the last few months of 2014, property values are on average 2.9% lower in Canterbury than they were in 2007, which was the last boom before they dropped by 15% to 20% in 2008. On the face of it, a 9.2% increase over the last 12 months in Canterbury property values is impressive, but should we be worried we are only 2.9% off the boom prices of 2007.  Does this suggest properties are too expensive in Canterbury?

Well, the answer is both Yes and No. Yes, the headline price that the property sells for is 2.9% lower than 2007, yet No, because these headline figures don't take into account inflation. Since 2007, inflation has risen by around 19%. So instead of property values being at nearly their 2007 boom prices, they are in fact 21.9% cheaper than the boom (19% inflation plus the 2.9% gap equates to 21.9%). People think inflation is a bad thing, eating away at the real value of your savings. It can however, be advantageous to property investors.

My answer to landlords is get the best advice and opinion you can. Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring when prices do start to rise again, you are in pole position.

Two bed apartment in Canterbury - 5.75% yield

As I gaze out of our office window, on this damp October morning, it's quite hard to get too excited about anything, let alone the UK economy and the performance of the UK property market. Thankfully, there's a little ray of sunshine coming out of Rightmove this morning in the form of a two bedroom apartment in the Wincheap area.

As you are aware from previous blogs, I have always been an advocate of two bedroom apartments, as these properties form the 'bread and butter' of the lettings market both here in Canterbury and across the UK.

The property in question, is a two bed ground floor flat which is on the market with Kent Estate Agencies for £177.5K. Whilst fairly basic inside, the property looks clean and tidy and should rent fairly swiftly. We would reckon a rental figure of circa £850 per month, which would deliver a fairly healthy yield of 5.75%. Upon further inspection of the property details, it comes with 2 x parking spaces, which is a real plus as most similar properties only come with once space.

Check it out at http://www.rightmove.co.uk/property-for-sale/property-48654929.html and give them a call!

Next week could be a bit quiet on the blog, as myself and Mrs A are off to Cornwall for the week. You never know, there may be some interesting property news down in the West Country!

Catch up soon!

Canterbury - Inside City Walls - Yielding 5.6%

As local celeb Phil Spencer advocates it's all about 'Location, Location, Location, so when a property 'pops up' on Rightmove inside the City walls, then it's time to sit up and take notice!

 

The property in question is a one bed apartment, located in St Johns Lane. As mentioned, it came on the market yesterday with Your Move and is being offered for £155K. It's shown as a guide price, so it's possible that there's an offer to be made here.

 

As stated, these properties are in great demand and a good agent should be looking for a rental of circa £725 per month. At this rental figure, the property will give you a rental yield of 5.6%. Happy days!

Check it out at http://www.rightmove.co.uk/property-for-sale/property-42655475.html

How to keep a tenant happy in Canterbury

With the prices of houses increasing up and down the country – in Canterbury this is 8.27% on average – it is now more important than ever to give your tenants what they want, because I can promise you if you don’t offer it to them, there’s another landlord out there who will.

 

I am not talking about giving tenants the silver spoon service or dancing to their every tune, but I am talking about being an interactive landlord. I have included just a few simple, and I would hope in most cases, obvious tips.

 

Ask yourself and answer this question honestly and you wont go far wrong. If you walked into your house, would you live in it, in its current condition? If the answer is no then there is work to be done. It is really as simple as that. Modern and clean is not a tenant luxury. It is a basic requirement if you are to secure a decent tenant at the right rent.

 

Once you’ve got your tenants, you should be trying to keep hold of them. There’s a very simple message here and that is that a good landlord is an attentive and responsive landlord. Don't hide from them, ignore them or hope they will go away. Deal with their issue straight away. This simply means that you listen to the needs of your tenants and you act on them. A good place to start with this is that you give your tenants your direct phone number and encourage them to call you if they need anything. If you have a managing agent be sure to engage with your tenant, via your agent in exactly the same way. It might surprise some of you to know that this would already give you a competitive edge of others.

Finally, if you want your tenants to remain happy, give them the appliances and tools that they need to keep the property in good shape. This could mean supplying that vacuum cleaner that you weren’t going to offer originally. However, by offering one, you’re ensuring the continued support of your tenants, but you’re also giving you property the best chance to remain in good condition for as long as possible.

 

So there you have it: three ways to keep you tenants happy and ensure they keep your property looking happy.

 

It can really be that simple. It will only be as hard as you make it.

Great investment property in Herne Bay - 5.82% yield

On a bright sunny morning here in Canterbury, we're off again to the seaside town of Herne Bay as yet again another property has just come on the market at just under £165K, with Reeds Rains, that has really caught my eye as a) it's simply stunning, b) these properties are in great demand and finally c) it's got a great yield at 5.82%, with a rental figure of circa £800 per month.

 

For the rental market, such properties are always in great demand due to their location, i.e. close to the railway station, therefore great for professional commuting couples.

Check this one out at http://www.rightmove.co.uk/property-for-sale/property-45197701.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 or call in and see me at 23 Watling Street in Canterbury.

2 Bed Apartment in Canterbury with a yield of 6%

When we look at the Canterbury property market, the most common type of property that's in demand by the ever growing rental market is the two bedroom apartment. These properties rent all day long and due to their strong demand, it enables agents / landlords to get good quality tenants, who will reference well and look after the property.

 

This morning, I was looking through the 'new arrivals' on the market for one of my investment Landlords in Littlebourne. He was looking to purchase another property for his ever growing portfolio and this property caught my eye.

 

This two bedroom apartment is located on the Homersham estate, on the west of the City, and again a great area for tenant demand. An interesting additional point, is that the Homersham area has done well this year, with a capital growth of 8.98%.

 

Back to the property... it's come on the market this morning at just under £170K with Godwin & Curtis. The interior shots look good and, yet again, there's does not appear for any works to be handled prior to tenants moving in, which again is good news. This will rent out for circa £850 per month, which in turn will give you a gross yield of 6%, which is spot on.

Check it out at http://www.rightmove.co.uk/property-for-sale/property-32531469.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 or call in and see me at 23 Watling Street in Canterbury.

Buying rental property in Canterbury

They say you make your profit when you buy a property, not when you sell it, as you are a little more in control of what you pay rather than what you are forced to sell for. With this in mind, why pay the high end retail price for a property just because it looks sweet and idyllic, when what you need is a property that meets all the financial requirements of a landlord first & foremost?

It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win. The most important message to convey in all of this is that Canterbury investors MUST buy well in the first place, because if you start the investment process in the wrong place, the rest of the mathematics that need to be in place to validate this transaction just do not stack up. If a property price is too high, and you just cannot get anywhere negotiating some money off the price, then there is one thing to do and that is WALK AWAY, there will always be another opportunity along soon.

The novice investor often thinks that by paying more for a property they will get a better property (not necessarily true, again, just buy well). They cannot reasonably expect the market, which is an average of many transactions and house prices, to change its tune in order to meet them at their now inappropriate level of return (yield) that they expect, simply because they paid too much – market forces don’t work like that. If a property investor is not sure on the potential rental levels for a given location, just get them to speak to us for free, impartial advice. We can let them know not only how much rent to expect, but from that we can advise them how to work out what the maximum is that they should be paying, and how ‘letable’ a particular property may be – there is absolutely no point in buying something, or somewhere, where very little demand exists.
 
And as for buyer beware, well they better had beware it with a capital B. Check out the larger, more important items in the house such as the boiler, electrics and plumbing, especially when paying in cash, because many investors won’t do this, and if they end up buying a problem then they will own that problem. If you are thinking of getting into the Canterbury property rental market and don't know where to start, speak to me for impartial advice and guidance to get the best return on your investment. 

Before I go, we now have an Email Subscription Service ... at the top right hand corner of the blog, above my picture is the ability to sunscribe to the blog .. gettting all new blog posts delivered to your Inbox!

Herne Bay does it again with a 5.25% yield!

It's the weekend and the morning 'browse' across the web has revealed another 'jewel' in the Herne Bay property market. Forget the need to have any works done on this property, as it's 'good to go' and just needs the tenants to move in!

It came on the market through Zoopla with Ward & Partners and is being offered to the market at £120K. Take a look at the photos and you can see what we mean, it's just fab!

Such properties will let all day long at £525 per month, giving you a yield 5.25%. This being said, I reckon this could be pushed closer to £550/£575, which just makes it even better!

 

Take a look at http://www.zoopla.co.uk/for-sale/details/29018697#xzlGkRm2XberDeAC.97

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 or call in and see me at 23 Watling Street in Canterbury.

 

Great investment in Herne Bay - 6.3% yield!

I just could not resist getting this one onto the blog, as it's a real 'corker'!! Again, these properties are in great demand with tenants and such properties make great first time investments or another 'bolt on' to the portfolio.

 

This one came on the market this morning with Kent Estate Agencies and I would recommend picking up the phone quickly to them! The property is being offered at £89,950 and is looking for a bit of 'TLC'. We have spoken to one of our contractors, who works for us on a regular basis installing kitchens and bathrooms, and he reckons that it would cost no more than £10K to install the kitchen, bathroom, redecorate and carpet the apartment, i.e. a complete refurbishment!

 

Now it starts to get really interesting, as the total outlay would now be £99,950 and we would recommend marketing this for at least £525 per month, which then produces a yield of 6.3%. Happy days!

 

Check this one out further at http://www.rightmove.co.uk/property-for-sale/property-48483161.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 or call in and see me at 23 Watling Street in Canterbury.

Ospringe Road Faversham - 2 bed - 5.14% Yield

Morning 'Prop pickers''. Another day, another deal! Again, we heading back to the fab and popular market town of Faversham. We have a number of similar properties that we manage in Faversham and the great point(s) about this market, is that a) there is a great demand for these two bed properties and b) due to the demand, we always manage to find good quality tenants, that reference really well and look after the properties.

This one came on the market this morning, with Your Move at £175K, which we believe that with a bit of 'haggling', the price may come down a bit more. As mentioned, these properties are in great demand and we reckon should rent for circa £750 per month, which then delivers a strong yield of 5.14%. In addition, these properties have delivered a really good capital growth over the past 5 years in Faversham, with an increase of 17.72%.

 

Check it our further at http://www.rightmove.co.uk/property-for-sale/property-48482594.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 or call in and see me at 23 Watling Street in Canterbury.

Do properties in Chestfield make good investments for Buy to Let?

I was talking to someone who lives in one of those 1930’s detached houses in Chestfield, near the centre of the village.  The village of Chestfield is set between the towns of Whitstable and Herne Bay and is approximately five miles North of Canterbury. It is popular with buyers and tenants alike, especially because of its proximity to the road network, train stations and its woodland areas to the South. Interestingly though, of the 1,305 properties in Chestfield, over 1,079 of them are detached (or 82%), compared to 31.6% average in Canterbury (Something that wouldn’t happen today with the price of land.). There are also 171 semi-detached houses and 37 terraced/town houses, the remaining accommodation being made up of flats and apartments.

Anyway, he was eager to purchase his first Buy-to-Let property and has noticed our previous articles, so was interested in getting to know the industry a little better. As he has lived in the Chestfield area for over 8 years and he felt comfortable investing around there as he knew it well, we started to discuss the property market in this area. With my local knowledge, I was able to tell him that there are plenty of 3 bed detached houses here, the larger ones can be bought for around £285,000 and a good one rents for around £950 per month, a healthy yield of 4.0% per year.  The gentleman then asked me whether the larger 5 bed executive houses in the village would make a good investment.  Taking an average 5 bed house in the village which sell for around £575,000 and let in the region of £1,500 giving a yield of only 3.1% per year.  However, it is the semi-detached houses that particularly caught my eye and these can be purchased for £170,000 and rent quite easily at £750 per month giving a more tempting yield of 5.3%, especially since 2004, as properties have on average risen by around 33.4% in Chestfield, which is good when you consider the CT5 postcode average is only 31.4% over the same time frame.
 

So with a reasonable yield and excellent capital growth, semis in Chestfield, especially 3 beds, could make a decent future investment. However, you may also want to consider Whitstable or Herne Bay as these have seen equally good capital growth with slightly higher yields. Whether you are a landlord of ours or not or someone thinking of investing in the rental market for the first time, drop by our offices in Watling Street for advice on where the bargains are in Canterbury.