One Bedroom Apartments In Folkestone – Are They A Good Investment?
Posted: 16/06/14 5:40 PM
A new landlord popped into our office last month looking for advice about purchasing her first buy to let investment in Folkestone. She’d seen the recent publicity in the newspapers about Folkestone being an up-and-coming seaside town and the rise of our arts scene fueled by the recent investments made by The Creative Foundation and our new fast train to London. She was particularly interested in finding a property which had at least a 6% yield but also had the potential for capital gain in the future. This particular landlord has just exchanged on a property that we found for her, but since then we’ve been instructed on another similar property just like it.
We currently have a one bedroom flat with a private garden on Julian Road available for a very reasonable price of £110,000. The property is being offered as a Buy To Let investment. There is a fully referenced tenant who has just moved in on a 6 month Assured Shorthold Tenancy. The rental income for this tenancy will be £575 pcm giving a 6.27% yield. However, you must remember that every landlord’s tax position and interest rates are different, so it is essential to research your investment carefully before committing.
On a personal note, we’re really hoping to find an investment landlord for this property since the tenant who has just moved in has had to move three times in the last 18 months due to his landlords selling their properties. Julie, our Sales & Lettings Co-ordinator, says that he’s a lovely man who’s hoping he won’t have to move any time soon!
Finally, let’s not forget about the potential for increase in capital value of the property. I was looking at the history of sales prices for flats and apartments on Julian Road and found that they have increased in value by 15% in the last five years. With more commuters moving to Folkestone every year, whilst capital gain is never a dead cert, it certainly is building momentum in Folkestone.
If you’re interested in Investing in Folkestone, download our Market Analysis of the local market from our not so secret website which includes supply and demand statistics broken down by number of bedrooms and a map showing the fast train railway stations and the most (and least) popular areas.
If you’re researching a potential buy to let investment in Folkestone then give us a call for a guide to the best areas to consider for your portfolio on 01303 212797.