With mortgage rates at their lowest level in years, many people are becoming interested in investing in property. Still, with all the uncertainty surrounding Brexit, some have been deterred people from investing in homes and other properties. There have been a lot of new taxes and legislative changes over the past few years, yet the sentiment is improving. Landlords will lose their ability to offset any mortgage interest costs after the gradual phasing out of tax relief. It is key to make sure that property investments match up financially. If you invest in expensive properties, you will see larger returns but there are other affordable options in areas that are up and coming.
While rents have gone up sharply in Glasgow, it still isn’t as expensive as Edinburgh or London. Rents for two bedroom properties have gone up 38 percent over the last decade according to the Scottish Government figures. Demand for properties in Glasgow is high. There is a strong student populations, thanks to its three universities, that helps it remain attractive to investors.
The city had the lowest proportion of housing stock listed for rent in Scotland, at 16.4 percent according study by the property letting platform Howsy. This research has put Glasgow at the top of the list as far as buy-to-let property goes. The average rent is low, so the city has the best rate of returns. This makes the yield in the city 7.7 percent on average.
Attracting the attention of savvy buy-to-let investors for years, the area encompassing Liverpool and Bootle was granted a £75 million redevelopment. Prices remain low. Boottle rose to the top of property hotspot listsfor 2020. These lists typically use an algorithm that takes into account that a wide variety of factors to choose the best properties for investors. In particular, Liverpool is underpriced for the population. A lot of investors go to Liverpool and prices have increased because of it. Bottle could possibly be the next hotspot, it provides more value and opportunities for investment.
It goes without saying that London is a desired destination for investing in property. But it’s a big city, and the opportunities to make money on property depend on the neighborhood. Despite its desired status, the property market in London is struggling. Now commuter towns have come under the spotlight for investment, but expensive areas still offer lucrative ways to get large returns. For example, houses for rent in Mayfair are a great opportunity to make a lot of money.
Beyond expensive areas where, if you invest a lot, you can make loads of money. Another attractive solution could in in the suburbs just outside the capital. These areas offer growth, accessibility, and affordability. Neighborhoods like Bracknell, Basingstoke, Horley, and others have grown significantly in popularity amongst both buyers and renters over recent years. These areas have emerged as top investment hotspots.
Burnley is ranked fifth, with an average yield of 6.5 percent. Its reputation is that it’s deprived, but this reputation gives it a good value. There are plenty of potential tenants that range from corporate tenants to commuters. The fact that people perceive Burnley as a bad area is somewhat misguided. It is a large place with good people, which makes it an enticing option for investors. It will likely gentrify as it becomes even more attractive to investors in property.
Herne Bay, which has a long beach of pebbles, is popular with people on holiday. Therefore it is eligible for a full mortgage interest relief. It is no surprise that it has attracted increased attention from property investors. Herne Bay is at the top of the list for London families to make a holiday home. That’s why it is a good option for investing in property in 2020.
If you have the money to invest in property, there are plenty of options. These are five regions that are ripe with opportunity. Despite taxes and Brexit uncertainty, mortgage rates are low and people are getting excited about investing in specific areas in the UK. When you are in the position to invest, do some homework and find the spot that is best for your investment.