If you are a property investor or just love property, you might wonder what type of property will be best to rent and get the best yield in Exeter? It's a pretty important and fundamental question. Let’s dive into some facts and see what is happening in the Exeter property market.
Overview of Exeter:
Despite political uncertainty, Exeter remains a great city to live, work and play in.
Exeter has a lot going for it, not least the fact it has one of the best Universities in the country, great sporting and cultural pursuits and lots of positive investment from the science parks to huge housing developments.
Exeter itself is a fantastic city, but it also benefits from being surrounded by great countryside and pretty villages, making it an attractive proposition for families (to find out how different areas near Exeter compare click here).
Importantly let's also not forget it is incredibly well-connected with fast trains into London, quick access to the M5 and a regional airport on its doorstep. There is no doubt Exeter has a lot going for it.
Exeter Property Price’s, stats and figures!
According to the latest figures from Zoopla, the average asking price is £306,216 and for those landlords interesting in rental figures the average asking rent is £924 per month. These are of course asking prices (and rents) so the actual sale prices are very likely to be less.
Interestingly, as of May 2019, there were 864 properties on the market for sale and 370 for rent. This equates to an average yield of 3.6% for Exeter.
Of course, averages only tell you part of the story and only offer an overview. If you are a property investor you want to know what type of property is outperforming others, so let’s take a look:
The best type of property to buy if you are a property investor in Exeter:
When it comes to making a property investment decision, there are lots of things to consider; not least the location, type of business you want to run, the type of tenant you want and of course the type of property you want to buy.
There are of course many other considerations to make, not least how best to structure any finance (particularly for portfolio landlords) but when it comes to deciding the type of property you should consider commercial, semi-commercial as well as residential property.
More than ever it is important to really consider how you will best maximise your returns. However, for now, let’s just take a look at the Zoopla stock in Exeter to get an indication:
Exeter 1-bed flats:
Average Asking Price = £154,437
Average Asking Rent = £657 p/m
Yield = 5.1%
Exeter 2-bed flats:
Average Asking Price = £213,036
Average Asking Rent = £883
Yield = 5.0%
Exeter 3-bed houses:
Average Asking Price = £293,210
Average Asking Rent = £983
Yield = 4%
Exeter 4-bed houses:
Average Asking Price = £413,967
Average Asking Rent = £1,764
Yield = 5.1%
Exeter 5-bed houses:
Average Asking Price = £631,526
Average Asking Rent = £1,923
Yield = 3.7%
Latest thoughts!
Based on the above stats, it looks like 1-bed flats and 4-bed houses in Exeter offer the best returns on investment.
Of course, this is still a huge generalisation as every property will be a little different, whether that is the purchase price, rent, or even the condition of the property.
Indeed you might want to consider a little development where you can add value, an HMO, a holiday let or maybe something else! If you do, then these figures will have less benefit as they are based on standard AST tenancy agreements.
Either way, I hope this does help you benchmark your own investment decision, helps you think about the type of property you want to purchase and ultimately helps you on that journey of investing in property.
A little bit about us; with our head office in North Devon, we've been fortunate to have expanded into Exeter and have been helping lots of clients in the area, from property investors to Nurses and Doctors. But at our core, it's quite simple really, we want to help people navigate the complexity of getting a mortgage! So if you need a friendly helping hand, drop us a line and say hi!