We’ve had a big response to our update on bank lending, and we’ve been asked a lot of questions around the Investment Market. I’m pleased to share some general advice around buying and investing.
1. Timings. In general it’s a good time to invest. It’s still a buyers market, and there’s great value to be had.
2. Areas. The best areas to head for are city centre. They are experiencing the best yields and the highest occupancy. The more prime the better.
3. Type of property. Traditional property has always been the best performing compared to new build (measured across both yield and capital appreciation).
4. Rental Market. There have been lots of headlines around a strengthening rental market. Scotland is generally performing better than England. The Student Market is particularly buoyant. Prime city centre areas are best.
5. Yields. Average yields in the industry are 5%. Larger traditional property in city centres gives a yield of 7% and above (that’s an improvement of around 20% due to lower prices and higher rents).
6. Capital appreciation. The long term average is 7% pa. On a geared return that’s a 28% return.
Banks are more active again. The number of buy to let products rose by 26% in the last quarter. B2L lending has increased by 40% on the previous year.
Everything seems to point to investing – but investing wisely. Buying in good areas and at a good price is key.
If we can help, let us know. www.grantpropertyinvestment.com
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Great comments and blog guys !!!!
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