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.
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