The property can be viewed here.

The flat looks to be in good condition and would be attractive to potential tenants. I have tenants queueing out of the back door to rent a flat like this! This flat would bring in £800 per month or £9,600 per year. A flat to this standard and so close to the station shouldn’t have many void periods, so factor in 1 week per year.

Even with void periods the rental yield comes to 7.84%; that’s a good figure. However this doesn’t factor in service charges, ground rents and lease renewals: so check with the selling agent on these figures. Also, unless you can complete before April, don’t forget to factor in increased Stamp Duty charges.

So what about capital growth? Flats on St James Street, Gillingham have risen by 24% over the last ten years to a current average of £137,746. This is similar to other flats in Medway, but the location less than half a mile from Gillingham station would point towards continued decent capital growth.

I think this is a good buy, especially in the current market. If you wanted to talk about this or any other Medway property investment give me a call, my number is 07944 726676. Or send me the details via email at hasan@home-share.co.uk.

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