Newspapers
report property prices in England have soared to a record high – sparking
predictions that the country is facing another dangerous property bubble.
Values in Kent are still 1.35 per cent higher than their previous peak in the
Autumn of 2007. Even with that news, I have been speaking to a couple of
landlords over the last few weeks who had concerns in some quarters that the
state backed schemes to boost the supply of mortgages such as Funding for
Lending and Help to Buy are inflating a new housing bubble. Those landlords are
asking if this means the end of property bargains in Royal Tunbridge Wells?
Well, if you do your homework, there
are still plenty of good buys in Royal Tunbridge Wells. Don’t expect them to
come on the more popular streets in the town. The first rule of buy to let
investment is that it is isn’t you that is living in the property, it’s the
tenant, and there is always demand for every street in Royal Tunbridge Wells.
Back in late
Summer of 2012 a two bedroom top floor apartment located in the purpose built
Sand Rock House development with views over Dunorlan Park came onto
the market with an asking price of offers over £250,000. The property was pleasantly presented inside
although a little dated. I kept the photos of the inside and it had a white
modern bathroom suite and a kitchen that was not unpleasant. It sold in the Spring of 2013 for
£230,000. Fifteen months later with what
I can see was just some inexpensive new carpets, some emulsion on the wall and a bit of modern furniture, it sold again
for £375,000 in the Summer of 2014 just gone.
In essence the new owners spent, in my opinion, no more than
£5,000-£10,000 but made a profit after costs of £100,000 to £110,000,
increasing the value of the flat by 38.8%.
Over the same time frame average property prices in Royal Tunbridge
Wells only rose by 16.25%.
By keeping
an eye on the local market, I am able to judge if a property is good value to
buy for a landlord. I give this advice and opinion freely to anyone who asks,
be they an existing landlord of ours or of another agents. I will also give it
to anyone thinking of becoming a buy to let landlord for the first time.
I do not
charge for this service, because if I offer you a honest and straight forward
opinion, you could consider using me to manage your property. However, I must
stress there is no obligation to do so. Feel free to pop your head through our
door on Vale Road in Royal Tunbridge Wells to chat about the ups and downs of
the property market in Royal Tunbridge Wells.
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