Today was Budget day, and if you happened to follow the chancellor George Osborne’s statement you would have heard about the raft of incoming changes, from Crossrail 2 to Capital Gains Tax. For a summary of the key points you can read a BBC news report here.
But today I am posting to you, my Medway Property News blog readers, about a nice two-bed terraced property for sale that has come onto the Medway property market within the last 24 hours.
It is being marketed with a guide price of between £165,000 and £185,000. The house is on Baker Street, which is in a desirable catchment area, being only half a mile away from Rochester train station and close to good local primary and secondary schools.
View the full listing and contact details here
Rents have been rising high for properties in this area due to its sought after location. My brother rents a property on Cecil Road (opposite Baker Street) and he commented recently on how fast rents are increasing in Rochester.
You would get £850 monthly rent for this property, and I would account for a week’s void period per year. This gives a gross yield of 6%, which is a respectable figure. This is assuming you get it at the £165k mark; at £185k your yield would be 5.4%.
So what about capital growth? Well in the past five years, properties on Baker Street in Rochester have risen by 29.45% (£57,592) which is slightly behind the Rochester average house price increase of 32.25% (£61,640). So I would expect average capital growth, but with a very low initial investment.
Still, if you’re looking to dip your toes into a cheap buy-to-let in a desirable location and with a good rental income, then this property may be worth a look. Rochester house prices rose to £236,137 in 2015, up from £203,856 in 2014, and was one of the top performers in the country. Medway house prices are similarly doing well.
One of my blog readers emailed me the other week asking for my opinion on a buy-to-let he was purchasing in Chatham. I gave him some advice on renting the property, and he was very thankful, but he asked me how could I be giving such good advice for free in emails and on my Medway property blog – “there must be some catch?”, he asked.
Well there is no catch. I only post about properties in the Medway property market that I genuinely think are good buy-to-let investments. I don’t charge for my advice because that is just the beginning of what I hope can be a beneficial relationship for both of us. If my advice fits the bill and I can help you with your property investments then I would be happy if you chose me to look after your Medway buy-to-let investment (and there is no obligation or expectation to do this).
So if you wanted to discuss this email, or any of the other blog posts, give me a call on 07944 726676, or email me at firstname.lastname@example.org.
Thanks for reading,