Monoply in Margate. How would you play?

A couple of local landlords and I had a discussion about the property market in Margate, when the subject of risk against returns arose.

All Landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other Landlords are interested in high returns, with a greater risk with regards to the quality of tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the areas of Margate which are perceived as being more desireable, such as the Palm Bay estate, where you can achieve annual yields in the region of 4-6%. If you don’t mind a slightly higher risk of void periods or varied quality of tenant, you will more than likely achieve higher yields in the region of 6-8%. The types of properties you would be looking at here would be in the Cliftonville area and generally be two bedroom apartments or three or four bedroom houses. If you are after higher yields of 9% and over, you could take more of a risk with houses of multiple occupancy but these are generally filled with less desireable tenants naturally leading to ongoing issues, therefore they are ideal for the risk takers amongst us.

If you are interested in investing in Thanet or need some advice on how to get the best out of your current property investments then come in and see us. Our office is along Northdown road in Cliftonville.