After witnessing a hectic rush for completion in my local conveyancing solicitors yesterday ahead of the deadline for the increased Stamp Duty Land Tax, it made me think on the future of the Medway rental market. Many think that this is the end of buy-to-let. As you will know if you’ve been talking with me in the past couple of weeks, I believe this will not be the case.
Buy-to-lets in Medway and the surrounding areas are worthwhile investment options due to various external factors including improved transport. This four-bedroom terraced property in on Glencoe Rd has entered the Medway property market in the past 24 hours, and it could provide gross yields of 9.5%.
A landlord of mine has a property on this road that he rents as a three-bedroom houseshare. In his case, when you go up the stairs there are two separate rooms, one with an adjoining bigger room. This current property is different, and unusual, in that the vendors have split this room with a corridor to create two separate single rooms. Have a look at the floorplan:
At conservative figures, you could get £80/week for the two singles, £100/week for the double and £110/week for the upstairs en-suite bringing a gross yearly rental income of £20,280. If you account for a week’s void period for each room per year, which I find is average for a property such as this in Chatham, this gives you a gross yield (including a stamp duty bill of £7,000, yikes!) of 9.5%.
This property is half-a-mile away from Chatham station, which will be good for capital growth and for minimising void periods. Additionally, my landlord has had good capital growth of around 25% in the year that he has owned his property. Another two-bed property that was bought on Glencoe Rd for £86,000 in December 2014 was sold for £130,000 six months later.
So if you are interested in this property, feel free to make contact with the advertising agents. If you wanted to talk about it with me you can give me an email at firstname.lastname@example.org or call me on 07944 726676.
Thanks for reading the Medway Property News blog.
Find me on LinkedIn