Location is always going to be your first consideration, and most investors will have their own preconceived notions about where might be best place to build a portfolio. Often investors will look to capital cities due to their regional importance and large local population. In reality, most capital cities will offer much higher than average entry level’s, along with high overheads which can start to hit your NET income.
The north of England has become the nation’s buy-to-let hotspot, due to its chronic undersupply of new property and a solid local job market. London has certainly become unaffordable for some, and the Northern Powerhouse has created a collection of cities that offer all the comforts of the capital without all the extra living costs.
Realistically, you have a higher chance of raising the value of your portfolio through the more established northern cities like Manchester or Liverpool, than many of the larger cities in the south, which continue to become unattainable to most renters.
It is also worth considering some of the other emerging towns and cities in the North, such as Bradford, where prices remain affordable for the moment. These less established locations can offer greater rental yields, but will only remain affordable for so long as the population continues to grow.
There is a clear reason why the rental property investing sector is so well-liked. Its stable income and healthy price growth that keeps pace with inflation, has attracted an influx of new investors in a turbulent economic environment.
As a developer with extensive experience in the property industry, IPG is well-positioned to assist our investors in identifying the best properties to rent out, creating profitable portfolios that help out investors achieve their goals.
If you’d like to know more about investing in property, please speak to a member of the IPG today.
We'd love to hear from you! Please get in touch using our online contact form below and we'll reply as soon as possible.