An Investor came in to our office earlier this week to discuss the affordability of property in Margate, with the current national property market being in recovery with increasing house prices. The best advice I can give to those looking to invest in property is our secret trick of the trade. You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.
When we put this to the test, we found that Margate currently has an average property value of around £151,759 with the average salary being £19,810. This is a respectable ratio of 1 to 7.6. Meanwhile in Herne Bay, the average asking price is £196,289 with the average salary being £21,006. The ratio of property values to salary is 1 to 9.4, which suggests the property in Herne Bay is 21% less affordable than in Margate.
We also had a look at Deal and found the average salary is £21,923 and the average property value is £204,298. This means that property in Deal is also a rather significant 20% less affordable than Margate, with a ratio of 1 to 9.3.
This could mean that now is a brilliant time to invest in Margate’s property market, while the average value of property is low compared to the average salary.
If you would like to talk to us about your potential investment or to see if you are maximising the potential of your current investments, please come into our office along Northdown road in Cliftonville or alternatively drop me an email on gavin.horton@belvoirlettings.com.
