However, gone are the days when you could buy any old house in Maidstone and it would make money. Yes, in the past, anything in Maidstone that had four walls and a roof would make you money because since World War 2, property prices doubled every seven years … it was like having a free cash machine.
If a landlord bought a Maidstone terraced / town house in the summer of 2000, he or she would have seen a profit of £137,900 to its current value of £232,600, a rise of 145.6%
Nonetheless, if that landlord had bought the same property in 2010, the Maidstone landlord would have only made £42,100 profit (a 22.1% increase). Yet since 2010, the country has experienced 31.5% inflation, meaning our Maidstone landlord has seen the ‘real’ value of their Maidstone property decrease by 9.4% (i.e. 22.1% less 31.5% inflation).
And this is my point. Nobody has been complaining about the property market in the last ten years, yet landlords are still worse off in real terms. If we do see a slight dip in property prices because of Covid-19 (looking at the market at the moment I haven’t seen any indication of its slowing down from its post lockdown takeoff), but if we do, Maidstone landlords need to realise property values aren’t the only indicator of whether the property market is good or not.
The reality is, since around the early 2000’s we haven’t seen anything like the capital growth in property we have seen in the past and it’s not predicted to grow at the rates it has previously done either. So, I believe it is high time for any Maidstone landlord, pondering investing in Maidstone property to stop believing the hype and do some serious research using independent investment expertise. You can still make money by buying the right Maidstone property at the right price and finding the right tenant.
Think about it, properties in real terms are 9.4% lower than a decade ago, so investing in Maidstone property is not only about capital growth, but also about the yield (the return from the rent). It’s also about having a balanced property portfolio that will match what you want from your investment – and what is a ‘balanced property portfolio’? Well we discuss such matters on the Maidstone Property Blog ... if you haven’t seen the articles, then it might be worth a few minutes of your time?