Is Cheriton one of Folkestone’s Property Hot Spots?

Posted: 20/04/16 10:07 AM


A landlord I was talking to recently missed his chance to buy a three bedroom house in Cheriton on Morehall Avenue, as it sold in a matter of days.  He asked me if there was something special about the area, and my instincts told me that the is, so I ran the numbers.

I have included the surrounding roads such as Chart Road, Surrender Road, the various “Saintly” roads to the south of Cheriton Road and others within walking distance of Folkestone West station.

The properties that seem to have turned over the most sales in the last year are three bedroom houses, which average at a selling price of £216,523 and two bed terraced houses, averaging with a selling price of £148,833.  The cheapest two bed terraced was on Cheriton Road and went to £120,000 and the dearest sold for £170,000.

Comparing the rental prices for the same area:  three bed semis will rent for around £975pcm, which would give you a 4.73% yield against an average selling price of £247,463.  Three bedroom terraced houses came out even better at an average purchase price of £190,300 and a typical rent of £850pcm giving a yield of 5.37%.

It appears on paper that there are no bad investments within this area, even the lower performing 3 bed houses are still able to potentially generate a 5% return.

One thing to bear in mind with flats is the annual service charges and the length of the lease.  With short leases, the purchase price appears to be very attractive, however it may make getting a mortgage a bit trickier as you won’t be able to choose from as many lenders.  Extending a lease could cost approx £12,000-£15,000 so this is something you should factor into your investment.  If you plan on keeping the property rented out for a few years, when you eventually come to sell the property, look at extending the lease at this point. (Unless the marriage value becomes prohibitive at this stage).  This means that you will benefit from not only the natural capital growth, but also a higher price, because it will then have a long lease.

Talking of capital growth, in the last five years, the property sold prices on houses in this part of the district have risen by 29% and flats by 22%, however semi-detached houses are the super-stars with an average 31.7% growth.

So the figures are stacking up in Cheriton’s favour, what else makes the area so special?  Proximity to the fast train will always be beneficial and the local art scene is taking off too thanks to Strange Cargo.

Tracey

Tracey Horton

This research highlights to me that if you’re considering purchasing a buy to let investment then a three bedroom house near the railway station in Cheriton would be worth considering both for yield and potential capital growth.
If you would like to talk to be about selling your property, renting your house or finding a buy to let investment then do get in touch, pop into our offices on Sandgate Road or email tracey.horton@martinco.com.


One comment on “Is Cheriton one of Folkestone’s Property Hot Spots?”

  1. Tracey says:

    Talking of Cheriton – here’s a three bedroom house going under the hammer a few minutes walk from Folkestone West Station: http://www.rightmove.co.uk/property-for-sale/property-41171478.html

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