Their budget was in the £200,00 region, so I initially looked at terraced houses in Rustall. The average value of a two bed property in the Rustall area is £201,600 (although the price range is quite wide and they can go as low as £180,000 bringing them just into our price range but as high £230,000). The two beds rent on average for £853 per month, giving us an average yield of 5.07%.
Then in true “Escape to the Country” tv style I showed them a “mystery property” which was a one bedroomed flat in the Hunter’s Court development on Showfields Road on the Southern edge of Royal Tunbridge Wells. Built in the 1960’s with looks that only a mother could love these one bedroom apartments sell well and let well achieving £595 per month rental and selling for on average £98,700 giving a yield of 7.23% a year. The yield on Showfields is proportionally 42.6% more than Rustall’s and at this price they could buy two and achieve a gross rent in the region of £1,200 per month.
However, to judge a rental investment, you must consider the capital growth as well as the yield. Since 2001, the average Showfields flat has risen by 50.1%, whilst terraced houses in Rustall have risen by 174% - quite a difference. Ultimately, we found both places to be a good investment depending on your own situation, but as you can see, Showfields Road/Hunter’s Court does offer better yields, but at the expense of capital growth which Rustall’s terraced houses offers.
If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices on Vale Road for a chat or email me direct on david.rogers@martinco.com
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