Where should you be buying in Oxford?

Last week, I spoke with  two of my landlords who asked me if the number of bedrooms in a property had any relationship to the return they could get. I did some research and followed up their query – I was actually quite surprised with the results...
   
Currently in Oxford, the average rent for a one bed property is around £925 per month with an average value of £195,000. This means an approximate return/yield of 5.6% per year. The average rent for a two bed property is £1250 per month with the average value being £279,948, which gives a return/yield of 5.3% per year. When I looked at the three bed properties, the yield/return changed quite drastically. The average rent being asked for is £1447 per month but the average value is £345,000 which would give a potential return/yield of only 4.3% per year. Four bed properties achieve a poor return/yield of only 4.1% per year, as average rents are £1893 per month but the average value is £550,000.

There is merit in both housing types. The averages suggest that 1 and 2 bed investments make the best returns overall and I would go along with this, but there is also alot to be said of larger homes especially family homes, which can offer longer term stability and lower maintenance cost for the property. Two of the many factors to consider before buying for investment.
   

If you would like any advice on choosing properties, come and see me at my office on Woodin's Way, Paradise Street. Alternatively and for the most up to date property and investment advice please visit my property blog at:

http://theoxfordpropertyblog.blogspot.co.uk/



Best regards

Richard