A few weeks ago, I discussed the differences in rent which could be achieved from properties in the villages around Oxford. I now turn my attention to the city, and in particular, Soutfield Park. It caught my attention.
Typically, a 1 bed apartment in this development will sell for £160,000, depending on condition and position. You can expect a rent of around £795 a month, which would see you achieve a gross yield in excess of 5.5%. A fantastic return from your investment! Interestingly, they do go even cheaper than this, with one selling recently for £150,000. Even with consideration to its locality (ground floor), it was nicely presented and would still command a rent of £750, which would give you an even better yield of 6%.
The good news doesn't stop there, folks. The average price for a flat in this development is £178,000. This has acheived an increase in capital value of 6.9% from 2013; 8.65% from 2012; 14.5% from 2011 and 23% from 5 years ago. When you consider the economic climate in recent years, these are impressive appreciations.
If you are a landlord who is looking to buy property to let, you should of course consider both captial appreciation as well as yield. If you can achieve the right figures on both then all the better but it is not essential. Sometimes a good yielding property won’t appreciate quickly in captial value and vice versa but so long as you have one of the two, you are on the right track.
If you would like any advice when choosing properties, then come and see me at our offices on Woodin's Way, Paradise Street or email me at email@example.com
Richard Goodwin, Lettings Manager, Martin & Co Oxford.