I was talking to a landlord from Speldhurst the other day
about the Royal Tunbridge Wells property market, following my recent articles
in the Royal Tunbridge Wells newspaper. He
wanted to know, with all the news about house prices rising, what had happened
to average property prices in the last 12 months. According to my calculations,
the ‘average value of a property’ in Royal Tunbridge Wells is now £399, 900,
which is a rise of approximately £18,700 in the last 12 months (a rise of
4.9%). Now by my calculations, the
average rent being asked in Royal Tunbridge Wells is around £1,198 pcm, which
means the yields/annual return are an impressive 3.6% per year. Therefore, if you add the rise in property
values and the annual yield a landlord can enjoy by receiving rent, the overall
total return is approximately 8.5%.
When comparing this to what you get from investing in the banks,
buy to let could be a good investment for you. As I reminded another landlord
the other day from Langton Green, the Royal Tunbridge Wells property market has
certainly changed since 2001. At the turn of the Millennium, of the 20,823 households in the town
itself, 2,435 of those households (or 11.6%) were privately rented. Ten years
later, over 2,740 new properties had been built in Royal Tunbridge Wells, but a
lot of those had been bought for Buy to Let; because by 2011, there were 4,528 properties
that were rented out to tenants .. that’s a lot of rented houses! (the people
of Royal Tunbridge Wells might be interested to note that now 19.1% of houses
in the town are privately rented compared to the UK average of 15.6%).
Don't get me wrong, there are pitfalls. My
message to all the people of Royal Tunbridge Wells, 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 lettings agents in Royal
Tunbridge Wells who are well placed to advise on whether the property you're considering
will rent and at what potential price. We are certainly more than happy for you
to pop in and see us at our office's on Vale Road in Royal Tunbridge Wells
(near the Train Station) for a chat or
email direct for any opinion on david.rogers@martinco.com
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