I am always looking for the best places to invest in Exeter for both capital growth and yield; it is surprising the difference between the North and South of the city.
I thought it would be interesting to see how properties in EX4 (which is
generally the North of Exeter) compare to those in EX2 (which is generally to
the South).
Now it is probably not surprising that properties in EX2 are on average
around 9.3% higher in value than in EX4, with the likes of St Leonards Road
bumping up the price. Property values in EX2 have increased by around 3.7% over the past year,
however prices in EX4 have gone up by around 47.4% more over the same time.
This must surely mean that EX4 is the place to invest for capital growth? Well, it is very much worth looking at the broader picture, a year is a
very short time in the life of a property.
When we start to look at property prices over the last 5 years, prices in
EX4 have increased by only around 2.7% more than EX2.
What would happen if we look at
the last 10, 15 or even 20 years?
When we look at the yields for
EX2 and EX4, it is interesting to see that there is a contradiction to the
general “the lower the property price the higher the yield but the lower the
capital growth” scenario.
Despite the average price in
EX4 being lower, yields are also lower at around 4%.
If you are considering
purchasing a property in Exeter, it is worth coming and seeing us at our Martin & Co Exeter office
on South Street so we can look at where will be the best for you to invest to
make the most of your money.
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