Sub £90k Buy to let bargain in RTW - 7.8% yield

Studio apartment in RTW for £85,000. This will rent for £525 per month giving a yield of 7.8% pa

An absolute bargain! On the market with Your Move .. link below 

http://www.zoopla.co.uk/for-sale/details/33968650

Do semi-detached properties in Langton Green make good investments for Buy to Let?

I was talking to someone who lives in Langton Green who wanted to purchase his first Buy to Let property and had noticed our previous articles, so was interested in getting to know the industry a little bit more. As he has lived in the Langton Green 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 whilst Langton Green was a very nice place to live, for investing purposes, the yields a landlord could hope to achieve only lay in the 2.5% to 3.5% per year region, however, property values have on average risen by around 181% since 1999, which when you consider the Royal Tunbridge Wells average property value increase is only 105% over the same time frame, it is good news all round!

However, as investing in property is a balance between capital growth and yield plus buying the right sort of property (normally semis and terraced properties), I was able to suggest Rusthall as a better bet for buy to let investment becuase there simply isn’t the stock of semi detached houses in Langton Green to buy, be it for home ownership or renting out. Interestingly though, of the 2,076 properties on the Rusthall, 1,429 of them are semi detached or terraced (or 69%), compared to 48% average in Royal Tunbridge Wells. There is also a healthy rental market, with 225 properties in the private rented sector, meaning only 10.8% rental saturation (compared to the RTW average of 15.7%) .. again another reason to invest in Rusthall.

So with a reasonable yield and excellent capital growth, semis in Rusthall, especially 3 beds, could make a decent future investment. Whether you are a landlord of ours or someone thinking of investing in rental market for the first time, drop by our offices  Royal Tunbridge Wells or email me. One final thought though, as I am sure many of you will know, Church Langton was where Subbuteo, was originally made .. just a bit of info as we get to the end of with the World Cup!

The Sherwood Estate outperforms the Sandown Park by 78%

I spoke about a conversation I had with a local business man/landlord, who lives in Sandown Park with its tree lined avenues, who took me up on the offer of an informal chat about the Royal Tunbridge Wells property market the other week after he read the ‘Royal Tunbridge Wells Property Blog’.  

It became really interesting when we compared his area of Sandown Park against the neighbouring Sherwood Estate, where he was brought up in the 1950’s. The extended 4 bed detached houses sell for anywhere between £550,000 and £1.5M, and rent for anywhere between £1500 to £3000 per month. Looking at the recent sales and rentals on Sandown Park, a landlord could achieve a yield of up to 3.2% per year, which isn’t bad until you consider those ex-local authority 3 bed semis in the neighbouring Sherwood estate, which sell for around £200,000 and let, depending upon condition for around £950 per month, achieve a yield of 5.7% per year, which is a 78% proportionally higher yield.

However, like 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 value of a 3 bed semi on Sherwood estate in 1999 was £98,875, meaning values have risen by 102%. Whilst in Sandown Park property values have risen by 133% since 1999.

Now I know there aren’t many landlords that would buy a large 4 bed house in Sandown Park to rent out. It’s just that looking at the Royal Tunbridge Wells property market in more depth enables me to give you the best advice and opinion to help you find the best investment property for you. 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 near the train station in Royal Tunbridge Wells