Flats are 36.35% better than houses in Exeter

I was talking to one of my landlords from Lower Pennsylvania a couple of weeks ago, when the subject of flats came up and whether they would make a good investment. 

Flats are not always the first choice for investors but they do usually rent very well and generally offer good yields. There is a strong argument that buying a flat these days is not an issue, however it is worth checking the service and maintenance charges are not too high and that there is a cap on how much they can be increased by.

You can still find a decent property to let in Exeter, typically, an apartment can be bought for around £156,500 – the average rent for a flat here is likely to be around £668 per month giving a gross yield in the region of 5.1%.

When compared to a house, which is usually a landlords preference, with an average price of around £275,700 and a rental of £862pcm, apartments could provide a 36.4% greater GROSS return.  Of course service and maintenance charges also need to be taken out of this, however so does the repair and maintenance of a freehold property.

If you would like our opinion on any potential investment, pop into our office on South Street, call us on 01392 254488 or email exetersales@martinco.com.

Want 41% higher yield than the Exeter average?

Following on from my previous post about capital growth throughout Exeter, I thought I should share this property to show an example of what is available at the middle of the range.

The property is currently achieving £685pcm and has been for some time, there could be some scope to push this a bit higher. If the property is purchased at the full asking price, this would give a gross yield of 5.5%. This is a pretty good yield I'm sure you will agree?

If you do not agree, you may find it interesting to learn the average yield for a property in Exeter is approximately 3.9%. Working this out in % terms, this property then has around a 41% higher yield than the average property in Exeter!

Now that's not bad!  Follow the link below for more photo's of the property.

http://www.martinco.com/for-sale/property/168749

EX4 outperforms the rest of Exeter

A landlord came into my office last week and asked my opinion on where he should buy his next property to get the best capital growth.

Over the last year, properties in EX4 have achieved an average price increase of 4.6% more than the rest of Exeter, therefore making it a good place for those interested in capital growth.

Knowing that capital growth is not the whole story, I suggested to the landlord that we also look at the potential rental income for the area.  Calculating the average rent for EX4 at £728 according to Zoopla, he would actually be achieving around 20% less rent than the rest of Exeter.

We ultimately decided that landlords have to make a decision on whether they would prefer greater capital growth or a higher rental return.

It seems in the current market in Exeter, the higher the property value, the lower the gross yield so choosing the right property is essential.  

I have just listed this superb house in Heathfield, Newton Abbot.  Two good sized bedrooms, large garden, garage and parking.  

With the excellent access to Exeter and Plymouth that Heathfields provides, I cannot see this one hanging around for long.

For a first time buyer or investor the property would be ideal at £142,500.

http://www.martinco.com/for-sale/property/168691