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.
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