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benh2308

A disproportionate number of flats for sale - does this say something about an area?

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Hi all

Looking at investment opportunities in Folkestone. From researching Rightmove it seems that over 50% of properties for sale are flats which is a very high proportion of the overall. For instance, Ashford, just up the road you're talking less than 25%.

Does this same something about the area - high or low demand for flats?

Thanks in advance

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Hi Ben,

No not really, Folkestone has a higher proportion of flats than most towns because of its large Victorian and Edwardian housing stock, particularly in the 'West End' area.

These have been converted into flats over time as the demand for large victorian houses has decreased.

It's the same thing with most seaside towns as back in Victorian times, Folkestone was a booming resort for the wealthy who wanted to own second (or third) homes by the sea and fresh air.

Just take a look at the 2 Edwardian hotels on the Leas,  The Grand and the Metropole I think they are called, and you will realise how much money was sloshing about in folkestone at the time. Fast forward 100+ years and the town's appeal has changed alot.

I know Folkestone quite well, my wife's mum lives there you see.  Maybe you can tell me your budget and what you are looking for and I can advise you further?

I've been investing and developing for 12+ years.

Find and connect with me on LinkedIn

CONRAD PATON

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Hi Conrad, thanks for the reply.

I've been looking at Folkestone because it's got good transport links and due to the recent investment/regeneration that's gone into the town thought I might be able to pick up a bargain. I've been looking at the yields though and they don't look too great. You can still get a 1 or 2 bed flat for less than 100K but the rental income looks around £500pcm, so a bit on the low side: gross yield 6%. Would be interested in your views as a place to invest in. I'm a first timer with about £40K to spend but would rather not put it all in one property. Ideally spend £25K (max) on one then save a bit more and buy another. Cheers, Ben.

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Hi Ben,

1st things 1st, do you have a mortgage broker you can rely on to get you the best deals in BTL properties, either as an individual or ltd SPV company? because that's where you start your search.

Then you can go out and find the 'bargains'. They can be anywhere, you just need to recognise them. Have you been to Folkestone or have you just been looking on the internet. Local knowledge is part of the key to sniffing out bargains.

Where and what to invest in is a personal choice and must suit your circumstances. But whatever you choose, try not to look at gross yield, it's pretty meaningless. Focus on return on investment (ROI) as a calculation to compare one investment property to another and one area to another.

Are you after high yielding properties giving good ROI (15% and up) based on rental return  or are you happier with less rent but the possibility of more capital growth.

How much in the way of refurb do you intend to do? If any? 

Do you wish to invest locally to you or further afield? The questions are many and I'll probably run out of space in this text box listing them.

In short, there is no one answer and no magic bullet. If you have £25k deposit and are happy to buy investment properties upto £100k with a mortgage then there are opportunities in Kent and Sussex and probably Essex aswell. But you are limited by your budget in the South East of England.

Go to somewhere up North ( where I'm from originally) and you can buy any house in my old street. You have a lot more choice overall, but then you have the hassle or the additional expense of investing in a property remote from you.

Does this make sense?

I could tell you where I may invest my £25k but it may not be the right place for you?

CONRAD

 

 

 

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