Rising rents have made the buy to let market more attractive than ever before for those investor looking for an income producing asset.
Fuelled by high deposits in the buying market rented property has never been in so much demand in the city of Edinburgh.
The increase in demand has seen average rents rise by more than 5% year on year for some properties and it looks set to continue for the near future.
Low interest rates for savers means buy to let could be a good alternative
If you are looking for an alternative investment vehicle and are considering an investment property then here are some things which you should consider beforehand.
Choose an area where there is likely to be demand such as near to a university or hospital, close to good schools or where there are good transport links.
Research what type of property is available and which offers the best value in the area you are interested in.
Always remember that it’s not about personal preference – it’s about the type of tenant you are targeting.
Think about who you want to rent to – for example if its students then you may want to look at a property with lots of bedrooms. However professionals may want a smaller flat with parking.
Avoid areas where the supply of rental property already outstrips demand.
There are many other things to consider
As you might imagine, there are a number of other things to consider before embarking on an investment property such as tax, purchase costs and landlords responsibilities.
Doing your sums to ensure that your return on investment both from an income and potential capital appreciation perspective is feasible is the starting point of your decision making process.
Neilsons can help
We understand the residential market in Edinburgh and the Lothians and are able to guide you on the best areas for purchasing investment property. We can also help you understand how to budget for the purchase of a buy to let by giving you a complete breakdown of the total cost of buying including all outlays.
Why not ask us for a no obligation consultation today.