Interestingly, he had
a couple of properties in both areas and wanted some advice on where to buy next. I did a comparison between
the
two and was surprised to find that the property
market in The Rydons had outperformed
the
Cranbrook market by around 25.5%!
The average price of property
in The Rydons is
£199,733. When
you consider that the rents that are achieved
in The Rydons are on average £801per month, this gives us a yield of
approx. 4.8% per year. So is The Rydons
the best investment?
Well, yields at Cranbrook, where the average
value of a property is £347,585 and the average rent
is £911 per month,
yields are around 3.15% per year (compared
to the 4.8% per year in The Rydons), so surely The
Rydons is the best
investment, isn’t it?
This, however, is a
great example of annual yield / return not being the only factor when
choosing an investment property, as you should also consider how much the value
of the property goes up in the long term.
In the last 4 years, property values have only risen
on average by 3.9% in The Rydons, however, average property
values at Cranbrook have risen on average by 5.6% in the same time frame.
So, if you are
investing in Exeter property,
do you want capital
value or yield? And do you know enough about what
is planned for developments around Exeter such as Cranbrook and The Rydons to
have an informed view of how values and yields may move in the future?
If you would like any advice on choosing properties, come and see us at our office on South Street.
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