The Highs and Lows of Milton Avenue in the last 14 years.

A landlord I know has owned a few properties on Milton Avenue for the last thirteen (ish) years. She came in to our office to take advantage of our tea and coffee making facilities (me!) and to discuss the rise and fall of property prices on Milton Avenue and how this has affected her yield over the years.

In 2000, when she purchased her first property on Milton Avenue, the average value of a terraced house on the street was £44,649 which had a sharp rise to £86,879 by 2003. This rise in value continued and in 2006 the average value was £107,250. At the height of the property boom in this area, a terraced house on Milton Avenue had an average value of £113,028. This soon dropped and in 2009 - 2010 the average was £98,832, this year has seen the average value increase to around £108,000.

When she told me of the rents she had achieved on the street, they seemed fairly stable over the thirteen years. In 2003-2004 the average rent was £410 per month, in 2006 – 2007 this rose to £556, in the slump between 2008 – 2010 it dropped marginally to £540 and now the average rent in Milton Avenue is £575, dependant on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 6.4% on Milton Avenue at the moment.

If you would like some advice with your potential investment, please come and see us in our office along Northdown Road. I do make a great cuppa!

Data Source - Zoopla Sold Prices - Rightmove Plus

Who wants 7.6% -- 9% yield!?

This property has come on to the market with Cooke & Co estate agents. One bedroom flats are renting very well at the moment and  would achieve in the region of £350 and £375 each month. The current owner claims he had been receiving £400 a month but seems a bit high to me, but still achievable obviously. Properties like this don't need to have a lot of money thrown at them to get them up to a rentable standard. As long as there is a decent kitchen and bathroom, a lick of paint should suffice. So a purchase price of £55k (unless you can knock a bit off) and a minimum rent of £350 each month gives a cool gross yield of 7.6%. Lets imagine for arguments sake that you can purchase this one for £50k and you tart it up a bit. Rent it for £375 a month. You would be looking at a fantastic 9% gross yield! Not bad at all!

Check out the full particulars here

http://www.rightmove.co.uk/property-for-sale/property-46915450.html

Margate Terraced Property Values Increase By £266 Per Week

Regular readers may remember that recently I wrote about house prices in Ramsgate and the increase in the last year. So I thought I would do the same for Margate.

Over the last 12 months the average property value in Margate has risen by over £15,500 from £167,063 to £182,606. A very nice 9.3% increase. I took a closer look at terraced properties as they make up nearly 34% of the housing stock in Margate. The average cost of a terraced house at the moment is £162,497 which is £13,827 more than this time last year. A nice increase of £266 per week. 

One of my Landlords who invests all over East Kent has recently bought in Canterbury so I thought I would compare our Seaside town with the Student City. Interesting results.

Canterbury has a higher weekly increase in value of £298 but prices in Canterbury are higher than Margate so we need to note the percentages on this one. The percentage increase in Canterbury in the last year is 6.9%, which is still not a bad return. However this is trumped by Margate with its 9.3% increase. It is also worth noting that property in Westgate on Sea increased by over 11% and Broadstairs is nearly 13% which is a testament to how Thanet’s property market is performing. 

If you need any advice on what to buy and where to buy it then drop in for a cup of tea and a chat. Alternatively give me a ring or drop me an email on gavin.horton@belvoirlettings.com