Is buy-to-let still a good option for your long-term investment plans?
There is a lot of hype in the media just now about the buy to let market not being as lucrative as it was a few years ago due to changes in tax legislation for landlords. But is that myth completely true or just speculation? If you are a landlord and are investing in property as a long-term investment should you be considering alternative options?
We’ve taken a look at the wider Scottish investment market and can safely say that buy to let property purchase in Scotland (and Glasgow in particular) is still a good investment (if you buy in the right areas) and here’s why.
- According to the UK House Price Index 2019, house prices grew in Scotland, on average, by 1.3% in the year to January 2019.
- Glasgow is the 3rd best city in Scotland to own buy-to-let property*, averaging a gross yield of 6.9% in G5 postcode with an average rental price of £816 per month and Dennistoun (G31) averaging a gross yield of almost 9% and a monthly rental of £703.**
- There are some lucrative hot-spots in Glasgow where property prices are starting to rise, particularly for young professionals. Read our recent blog to find out more about these hot-spots.
- Inward investment is on the increase in Glasgow. Barclays recently announced their move to Glasgow doubling their staff to 5000 employees over the next 2 years***.
- Glasgow boasts 3 of the UK’s leading universities and attracts students from all over the world, a great source of tenants for Glasgow properties.
On the opposite side of the coin, investment in stocks and shares are currently yielding on average 5% (according to the FTSE100). However, with Brexit looming, the markets are volatile and there is a lot of uncertainty hanging over the future of the markets. It is also very difficult to pick the right stocks and shares that will generate a consistent high yield.
What about savings accounts? According to the FDIC, the average UK high street bank savings account is yielding an interest rate of only 0.09%.
Taking the alternatives into account, it demonstrates that property investment is still a good option for your long-term investment plans. Are you considering investing in property as a long-term investment? Tell us what you are considering as part of this decision?
*Source: TotalMoney.com
**Source: One Stop Properties
*** Source: The Guardian
