Are you looking to invest in the Medway area? But need a little help finding the right property for you. We search the market and we put forward a property that we think is a good investment. This month our search brings us to Gillingham and what caught our eye was this 3/4 bedroom terraced house on Charter Street in Gillingham.
Why we picked this property out of the 106 available in Gillingham is that it has the benefit of a already being rented out, what the owner has looked to have done on this property is to turn this into a House of multiple occupation (HMO) where each room has been rented out. This can be very rewarding as it usually brings in a higher return on investment. For this property the annual rent is £18,700 which is £1,558 a month compared to renting the property out as a whole which would bring in around £950 a month.
Charter Street is an ideal location for attracting students as it is very close to the 3 main campuses of the University of Kent, Christchurch University and the University of Greenwich. This house looks to have been set up as 4 individual bedrooms, one bedroom has the benefit of an en-suite.
If all 4 rooms have been let then each room has been rented out for £389 a month which is slightly lower than the average, however when the tenants leave you maybe able to add value to the property by increasing the spec of each room. What you can do is paint the walls in vibrant colours, update the kitchen and put higher quality furniture which you should be able to get a trade prices and then you could potentially be looking to rent each room out for £450-£500 a room which at the lowest figure of £450 would bring in £1,800 a month and £21,600 over the year.
The current yield is very good based on the figures below:
Purchase price £235,000
However if you was to make a few changes mentioned above you could see your yield go up to 9.19% with each room being rented out at £450.
Gillingham is a great area to invest in with the university campuses and the hospital. Not to mention there is a lot of redevelopment happening in the Medway Towns which has seen Gillingham house prices increase by almost 24% over the last 5 years which is an increase of £54,528.
Here are some stats on the rental market in Gillingham 30% of properties let in the past 12 months were flats, achieving an average rental value of £778 per month. Houses achieved an average rent of £799 per month. Over the last 12 months, the average rent achieved for properties let in Gillingham was £763 per month. This is a decrease of 2% change on the previous 12 month period. And 40% of tenants are aged between 18 and 29.
If this sounds like an ideal investment for you, the property is currently on the market at £235,000 with Doorstep.
If you have a property in mind, get in touch with us so we can give you a in-depth rental market report on your property