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.
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