Are property prices going up or going down and is now the time to invest or should you hold off until there is a clear trend that property is definitely increasing in value?
The answer is decidedly yes, now is a good time – for selective investors who do their research.
Across the country there are a number of areas with a real microclimate for property prices and rental yields. What’s difficult is that they’re not usually the ones making the headlines.
Depending on which paper you opened or website you clicked on throughout May, stories have been contradictory every single day. And even the Nationwide’s most recent figures are somewhat inconclusive: in fact, they show two trends – property prices going up at the same time as going down.
But property prices aren’t everything for investors. Of course, it’s crucial to find a well-priced investment. However, in the long term, the success of the investment will be determined by factors including its location and rental potential, which is where microclimates come in.
One such microclimate is Edinburgh. Scotland’s capital is not only a tourist attraction it’s also one of the UK’s major hubs for education and research. For property investors that means a steady stream of students and young professionals looking for quality accommodation for a set period of time. Cities such as Manchester or Leeds offer similar prospects.
Growing universities are a great indicator for potential property investments, but there’s more to choosing the right investment. Student (and graduate student) populations tend to congregate in preferred areas of town, often within walking distance to their uni, but also close to pubs, bars, shops and so on, making it absolutely crucial to find not only the right city but also the right area within it.
What’s more, most students enjoy living with their friends. Using Edinburgh again as an example, four and five bedroom flats are the most popular among undergraduates and rental contracts tend to be completed several months before the entry date, giving an investor a high degree of security.
Lastly, don’t renovate on the cheap. While it may seem tempting to save initially, a property that’s been upgraded professionally and is well appointed will wear better and ensure a higher rental yield for years to come.
All in all, don’t hesitate to look into property investment now. There are plenty of buy-to-let mortgage deals available and if you do your research you’ll be rewarded with generous long term gains.
