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Property Investment

Why invest in property?

Where should I buy properties?
Scotland offer in our opinion access to high yielding property returns. With property prices amongst those most affordable in the UK at between 3-4 times income and not like other parts of the UK where properties even now, are 5 times income or more.

Scotland also allows access to coastal properties which typically have often outperformed the market over the medium term, with prices of flats starting from £25,000 and some 3 bed houses at £40,000 should ensure your property is cash flow positive.

The quality of the investment properties in Scotland can if available include the much sort after sandstone tenement properties, a popular property that is full of character and often much desired.

When is a good time?
Now is the ideal time to invest in property due to current market conditions, with property prices last seen at this level in 2004. With levels of investment returns at an all time low, and with the volatile stock market fluctuations, this asset class is probably best left to those chasing speculative returns with high risk. Property by contrast, even in these testing times, is seen as a solid investment and low risk.

What type of property?
This really depends on your aims. We can assist in forming a strategy with you to help with investment portfolio planning and your property mix. A well constructed property investment portfolio often contains various property types, in different locations, therefore having a balancing effect and ideally reducing risk, whilst maximising your exit strategy.

Costs associated with property investment?
Typically with mortgage companies lending up to 75% of the purchase price, only a 25% deposit is required. With our average purchase prices for 3 bed houses currently at £60,000 and flats at £40,000, only a small amount of deposit money is required to secure the first rung of the Buy-to-Let property ladder.

Effort required?
It does require effort to be a good landlord, and things do go wrong, but typically over time it can be financially rewarding and often long term tenants mean that you have little day to day involvement.

Risk identified with property?
Property continues to represent a safe long-term investment. The Department of Records states that in the last 32 years property has risen in 28 of the years and fallen in only 4. So, the trend for property values remains consistently upwards, despite short term market fluctuations.

Demand for new housing is outstripping supply and there's a current shortage of 4 million homes in the UK. With the population expected to rise by 10% by 2030 and council restrictions on new developments, there's no way the supply can meet the demand.

Property investment should be considered as a medium – long term investment. Ideally you should be looking to keep your property for over 3 years, preferably 5 years or more to reduce fluctuations in market conditions.