Sherwood – the place to buy a buy to let?

One of the final chunks of census data has recently been released by the Government, and for those of you who like to look at RTW housing market, it is a treasure trove of information. Information is so important when making decisions on what (or not) to buy when investing in property. A few weeks ago, I was discussing the roads around Rustall and Showfield’s Road. Today, I want to look at the area around the Sherwood area on the North Eastern edge of Royal Tunbridge Wells. The census data allows anyone to look at the data for housing estates or areas, but even better down to individual roads. Such information allows us to weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.

There are, in the Sherwood area of Royal Tunbridge Wells, 7,249 people living in 3,001 properties. It is the home ownership percentages that really got me interested, as it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties.  Of those 3,001 households in Sherwood, 23.4% own their property without a mortgage (compared to the 32% Royal Tunbridge Wells average) and additional 29% households own their property with a mortgage (again the Royal Tunbridge Wells average is only slightly higher at 33.7% and that includes all the posh villages!).

However, the thing that surprised me was the low level of private rented property. Normally, when you have low percentages of home ownership, the renting is high. However, this is quite the opposite in the Sherwood area where 8.2% (or be exact 245 households) are in the private rented sector (compared with the Royal Tunbridge Wells average of 15.7%). The reason being is that the Sherwood area has a high proportion of social housing, in fact 36.7% or 1,101 households are under social housing ownership and as a large proportion of the existing home owners bought their properties from the Council it does not give much room for the private rented sector in Sherwood. With such excellent demand from homeowners and tenants, this could be the right area to purchase your next buy to let investment, as average yields in the Sherwood area are in the region of 5%-6% and Sherwood’s values mostly performed well over the medium to long term.

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our office's on Vale Road for a chat or email me direct on david.rogers@martinco.com

What type of property in Royal Tunbridge Wells sells the best?

Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why?  Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to. Bearing this in mind, last week, a couple from East Peckham popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.

A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but of the 30,606 households in Royal Tunbridge Wells there are 1,046 properties on the market for sale. Of those 1,046 properties, 494 properties are fully available on the open market waiting for a buyer and 552 have buyers and are sold subject to contract. That means 52.7% of property on the market has a buyer in Royal Tunbridge Wells (in Tonbridge only 49.1% properties on the market have a buyer and SevenOak’s properties have 51.1%).

However, delve deeper, and in Royal Tunbridge Wells today, 54.7% of flats on the market have a buyer and great news for terraced house property owners, as 60.7% have buyers.  Semi detached houses fair even better, with 121 of the 195 on the market now having buyers (making 62%). The properties that appear to be sticking though are bungalows at a comparatively lower 47.3% and detached houses at 41.3%. 

I am always giving advice to my existing and new landlords in Royal Tunbridge Wells on what to buy (or not as the case may be).  Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on. 

Ashenden Walk, Tunbridge Wells - Buy to let deal of the week

I am so liking this lovely 2 bed semi on the market with Andrews for £250,000 .. lets well, sells well, half decent yield. On this street they have risen in value by nearly 20% in 2 years.

Dont hang about .. nice inside ..look at the pictures (via the Zoopla link)

http://www.zoopla.co.uk/for-sale/details/35051883

Showfields property market outperforms Rustall by 42%

I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money knowing the return they would get investing in the Bank. They have lived in Royal Tunbridge Wells all of their lives and wanted to buy something in a street or area that they know well.  They were looking for advice upon what they should buy.

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

7.6% Yield in Royal Tunbridge Wells

Here is today's best BuyToLet deal in RTWells. 

Freeman Foreman have this Studio apartment for sale at Offers between £90,000 to £100,000.

She will rent with your eyes closed for £575 per month, giving a yield of 7.6% if you buy her at tthe bottom end of the scale.

Contact Freeman Foreman for more details .. Zoopla link here .. 

http://www.zoopla.co.uk/for-sale/details/17869828

Royal Tunbridge Wells vs Tonbridge .. the tale of two very different property markets

I was talking to one of my landlords from Bidborough the other week, when we were looking over a few properties that he was considering buying  in Royal Tunbridge Wells and Tonbridge. As I know towns well, I was able to discuss the two towns in depth with him. We started to notice an interesting pattern in the house prices between the two. Royal Tunbridge Wells has always been a slightly more expensive town to buy in comparison to Tonbridge but depending on what type of property you buy, there are some fascinating differences.

A few weeks ago, we said that the average value of a property in Tonbridge was £395,000, compared to Royal Tunbridge Wells’s of £399,900 (making Royal Tunbridge Wells 1.2% higher). However, when you look deeper, things become quite interesting between the two towns. Terraced houses in Royal Tunbridge Wells are 17% higher than Tonbridge’s (£304,200 to £260,000), detached properties are even higher, 19.1% in Royal Tunbridge Wells (£701,500 compared to £588,600 in Tonbridge). Whilst semi detached houses are only 13.5% higher in Royal Tunbridge Wells (£373,900 to Tonbridge’s £329,33) but flats are only 0.1% cheaper in Royal Tunbridge Wells than Tonbridge’s  (a flat in Tonbridge is £237,300 compared to the average flat in Royal Tunbridge Wells at £237,100).

So, why the big difference when looking at the different types of properties and their relevant prices in each town? Well, after investigating, it transpires that in Royal Tunbridge Wells, there are 118.75% proportionally more flats than Tonbridge (35% of properties in Royal Tunbridge Wells are flats compared to only 16% in Tonbridge). However, on the other side of the coin, Tonbridge has proportionally nearly three quarters more semi detached properties (in fact, Tonbridge must be the land of semis as 44% of property in the town are semi detached houses, compared to our 26% in Royal Tunbridge Wells).  However, both towns have similar numbers of detached and terraced houses.

The average value of a detached house, semi-detached house and terraced house in Royal Tunbridge Wells is considerably more than our neighbour in Tonbridge.  However, because Tonbridge has a higher proportion of the more expensive houses (ie detached and semi-detached) this means the gap, when looking at the overall average is much closer at 1.2%. These differing housing provisions in the two towns just goes to show that you need to know your marketplace and decide which is the right area for your money. If you are an existing landlord or one who is thinking of become one in Royal Tunbridge Wells, don’t hesitate to pop by our offices on Vale Road in Royal Tunbridge Wells or send me an email to david.rogers@martinco.com 

Rochdale Road R.T.Wells - Buy To let heaven

Andrews, the Estate Agents, have just put this sweet terraced on the market for a very reasonable sub stamp duty £249,995.

Here is the link http://www.zoopla.co.uk/for-sale/details/34902403   .. its nice inside.

Will rent well and sell well ... dont hang about .. I think it wont be long before she goes

Freehold - Buy to let investment in RTW under £150k

Have a look at this 1 bed quarter house. Freehold so no nasty service charges. On the market with Woods and Pillcher at £150,000 and should rent easily for £750 per month if presented well. If you can pick her up for £140,000, that's a tasty 6.42% yield. Link below

http://www.zoopla.co.uk/for-sale/details/34123259#lOxHLlPG4MvcWQMO.97

Royal Tunbridge Wells Census figures released - interesting news for RTW homeowners

It seems a distant memory three years ago when we were filling in our Census Returns, but now the figures are beginning to be released, especially the statistics about property. The figures for each individual town and council have been released, so let’s look at the area Tunbridge Wells District Council figures. 

 In the whole of the Council Borough area (the town of Tunbridge Wells and the immediate villages) there are 47,174 households,  with just under a two thirds of properties being owned,  65.7% % to be precise (30,999 households) of which 15,111 don’t have a mortgage (lucky people!). Renting interests me and 7,995 householders rent their house off a private landlord (or 16.9% of households to be exact).  If you recall in a previous article, I said 19.1% of households in Tunbridge Wells alone (just  town itself and not the Borough Council area) are privately rented, showing that more people rent in the town than they do in the villages.

So, with 16.9%  of households being rented in borough, which is just  above the  national average of 15.6%, where does that put our Borough when compared to others? For renting, Royal Tunbridge Wells Borough is just outside the top 25% of local authorities when it comes to renting (98th out of 347 authorities) but we are in the bottom third for home ownership (228th out of 347 local authorities). 

So does that mean renting isn’t booming in Royal Tunbridge Wells? .. quite the opposite! Demand continues to be good from quality tenants who are prepared a pay a decent rent, but only for a decent property. If you remember a few weeks back, I said the landlords in Royal Tunbridge Wells, on average over the last 12 months have achieved a total return of over 8.5% in the last year. If there were a glut of rental properties, there would be an over supply of property to rent, driving prices down. In the lettings industry, it is recognised there will always be 5% of the rental market up for rent at any one time, which means there should be 399 properties to let today in Royal Tunbridge Wells and  the rest of the Borough area (5% of 7,995 privately rented houses in the Borough is the 399) .. I am pleased to tell you there are only 286 as I write this article!

 Don’t get me wrong, tenants are more discerning in the properties they rent. Woodchip wallpaper and no central heating won’t cut the mustard anymore. However, present your Royal Tunbridge Wells property to a good standard and price it right and you should do very well. If you are considering becoming a landlord or are an established landlord who is thinking of buying another property to rent out in Royal Tunbridge Wells, please do your homework. Feel free to ask my opinion on what makes a 'decent property'. I don't sell property, so it's in my interest for you to buy the right property for you, not me. I don't charge for that opinion, because I hope you will recommend me to your friends, which in fact is the best compliment you can make.

Property Values along A26

In a previous article I said that average property values in Royal Tunbridge Wells had risen by £18,700, taking the average Royal Tunbridge Wells property to £399,900 ( a rise of 4.9% over 12 months). This is great news for anyone who owns their own home in the Royal Tunbridge Wells. 

 

However, the A26 has other towns along its length and as a landlord one must consider other towns to invest in. If you go North out of Royal Tunbridge Wells along the A26 the first town we get to is our sister town of Tonbridge, this town has seen an increase in property values by around £28,700 over the last 12 months, taking an average property up in value by 7.8% to £395,000.  Going further North, we get to Maidstone which has also seen some modest property value increases, taking the average property from £259,900  a year ago to £282,300, an £22,400 increase or an 8.6% rise.

In a Southerly direction, we get to Crowborough, where average property values have also impressively risen by £30,600 to £383,500 which a rise of 8.5% in 12 months.  If you go a little further South along the A26 we get to Uckfield where property values have only increased by 4.5% taking an average property from £372,600 to £389,400.   

I find it amazing that five places along the A26 – Maidstone, Tonbridge, Royal Tunbridge Wells, Crowborough and Uckfield, all within a stones’ throw of each other, can experience such variation in property prices. 

 With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £15,000+ for the deposit and fees, I can only see greater demand for rental properties in Royal Tunbridge Wells, which will mean that 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 Royal Tunbridge Wells, pop in and see me or one of my team in offices 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

Royal Tunbridge Wells sees 8.5% return on investing in the rental market

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

Royal Tunbridge Wells property prices .. the long climb back to 2007 prices

After reading my previous articles in the ‘Royal Tunbridge Wells Property Blog’ , 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 Royal Tunbridge Wells. In the past few months, if you were going to be buying in Royal Tunbridge Wells, 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 Royal Tunbridge Wells have increased by a modest 4.93% in the last 12 months. However, that does not tell the full story as different areas of Royal Tunbridge Wells have  grown at different rates.  Properties in TN1 have risen by 7.5% in the last 12 months.  Values in TN3 have risen by 6.6% whilst values in TN2 have risen by a more modest 4.9%.  Looking at TN4 we find values have only risen by 3.6% in the last year.

So even though different areas of RTW are growing at different rates they are none the less still growing, some may even say some areas of the town are at a runaway level and therefore ask quite rightly whether property values are becoming too expensive or getting out of control ? On the face of it, a 4.9% increase over the last 12 months in Royal Tunbridge Wells property values is impressive could this suggest properties are too expensive in Royal Tunbridge Wells?

Well the answer if both “yes” and “no”.  Yes because the headline price that property sells for in Royal Tunbridge Wells  is only 2.2% below the figures that were being achieved in 2007, yet No, because those headline figures don't take into account inflation. Since 2007, inflation has risen by around 19%. So instead of property values being nearly (2.2% nearly) as expensive as the 2007 boom, they are in fact 21.2% cheaper than the boom  (19% inflation plus 2.2% equates to 21.2%). 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 you are in pole position.

Rustall .. buy to let bargain

This has just come on the market with TW Estate agents for £265,000 .. buy to let heaven .. wont be on the market long

Here is the the link   http://www.zoopla.co.uk/for-sale/details/34115449