I was talking to somebody last week about the St Lukes area of Ramsgate, she was considering becoming a landlord for the first time. She visited our office to ask us whether buying a property on Dane Park Road or Winstanley Crescent would make a better Buy to Let investment, and which would offer a better return/yield. She knew the area well, as she lived around there a few years ago. I confirmed that the properties on both streets let and sell well, but I wanted to do a bit more research to help with her choice…
The average price for a property on Winstanley Crescent is £141,404, while on Dane Park Road it was nearly 8% more, at £152,713. To better understand the investment opportunities available, we took a look at the rents achieved over the last year. The average rent achieved on Winstanley Crescent was £655 pcm giving a yield/return of 5.6%. On Dane Park Road the average rent was slightly lower, at £616 pcm, with a corresponding yield/return of 4.8%. We took a quick look to see what capital growth had been achieved in both roads and found that a 2 bedroom terrace in Dane Park Road was sold in 2000 for £46,000 and sold again earlier this year for £126,000 giving a capital growth of just over 93%. In Winstanley Crescent a similar property sold in 2000 for £51,950 and sold again in August this year for £149,500 giving a slightly higher capital growth of just under 97%. We found both streets to be as good as each other, but as you can see there is a difference in the yields/returns, which we would not have identified without the extra investigation. In this case it really comes down to the best available property to buy on the day.
If you are a landlord or investor, whether you deal with us or not, feel free to visit us at our office on Northdown Road to ask our opinion on which property investment is best for you.
