Last week, a landlord who lives in the Kingsgate area had a chat with me to discuss the rising property values in the Thanet Peninsula area. He owns a varied portfolio of rental properties, primarily in Margate and Ramsgate with one in Broadstairs, so it is interesting to compare the increase in property values around the area.
Over the last 12 months in Margate average property values have risen from £172,800 to £182,600, a rise of £9,800 or £188 per week. When I looked at some of the surrounding towns, Ramsgate has had a much higher average increase in property values, at around £265 per week (the average value of a Ramsgate property rose by £13,800 taking its average value to £186,600), whilst Broadstairs has had a even higher rise of around £311 per week (taking an average property from £248,300 to £264,500 over the last 12 months).
However, when one looks at the percentages, Ramsgate has performed the best, rising by 8% in the last 12 months, compared to Margate at 5.68% and Broadstairs at 6.5%! It is, nonetheless, a rise in all the town’s average property values which suggests the market is increasing steadily in all of Thanet – good news for home owners and landlords alike.
When considering this landlord’s buy to let portfolio, yields can be in the order of an average 4% to 7% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Margate, Ramsgate or Broadstairs as property values start to rise.
If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market please call into our offices at Marlowe Innovation Centre, Marlowe Way, Ramsgate or phone on 01843 610 611.