Best areas to buy a rental property
If you are ready to invest in a buy-to-let property then there are lots of questions that you are likely to want to ask. One of these is where exactly are the best areas to buy a rental property. Knowing the key property investing areas can help you to maximise the profits of your investment and see a return in the long term.
The area will often be what attracts the right tenants that you are searching for and will also help you to price your property too. But, where exactly is the right place to buy a rental property?
The thing to remember is that this can change over time, with different areas becoming popular (or decreasing in popularity). Not only this, but you will also see increases and decreases in property prices too due to the economy.
So, where are the best areas to buy rental properties?
Scotland
One big surprise at the moment when it comes to property investment is just how lucrative Scotland is proving to be. Many of the top 10 hotspots in the UK for property investments are in Scotland.
The rental yields in some parts of Scotland are as much as 8.5% which may not sound a lot on its own, but when you consider how this can work out against a considerable property price, this can be quite a lot of money.
The top areas to invest in property in Scotland are East Ayrshire, West Dunbartonshire, North Lanarkshire, Renfrewshire and North Ayrshire.
Another great plus point about Scotland (particularly if you are based in England) is that the property prices are low, much lower than in other parts of the UK, which means that any money you have raised to invest in property, can be put towards a great one.
North East England
It seems like the North of the UK is doing well when it comes to property investment, as, after Scotland, the next hotspots when it comes to rental yield are all in the North East of England.
These include Hartlepool, Middlesbrough and Sunderland too.
Much like Scotland, the reason behind this high rental yield is that the property prices to buy there are all much lower than they are in the South of the country. Which means that you are going to be able to buy more property for your budget.
So, does this mean that London is out?
The answer to this is no. If you can, then London will always be a great place to buy a property to rent out, as it is a popular place to live for many people. Another thing to remember about London is that the rental income will be higher than they are throughout the rest of the UK, in monetary terms at least.
But, this doesn’t necessarily relate to the rental yield. The reason for this is that the properties in London are incredibly expensive to buy when compared to the rest of the UK, which means that even though you are renting a property out (often for triple what you could charge in other parts of the country) the initial investment that you need to make into the property is going to also be much higher.
That said, London has a variety of other perks and benefits to being chosen, which means that if you are considering the city for your rental property, it can still be a worthwhile option.
More often than not, whilst there are still some places in the UK that are better to buy a rental property in than others, it is down to you as a landlord to make the money. So long as you invest wisely and do what you can to make sure that your property is appealing, then you should soon see your money coming back to you.
Also Read: How to Invest in Commercial Property?