Everybody knows that houses in the north of the UK are cheap. Very cheap. If you’ve ever lived in or around London you will undoubtedly have heard someone moan about how they could buy a mansion up north if they ever made the decision to sell their house.
The thing is that very few people ever do. Whatever the reason, be it the colder weather or the distinct lack of vegan restaurants that are so common in London, the majority of those who live in the south of the UK never make the jump for affordable property.
Putting your money into property investment is a smarter decision than simply leaving it in a savings account and if done properly can produce a small fortune in returns. Here is why you should consider placing your savings into the UK’s northern property market.
Low Risk Investment
What a lot of people fail to realise is that just because you’ve bought property in the north of the UK, it doesn’t mean you have to live there. The opportunity for property investment is definitely too quickly overlooked. Rent prices over the last few years have seen a distinct rise in the north east of the UK but with house prices remaining fairly stagnant. You don’t have to be a rocket scientist to realise this is a great opportunity for those who want to make a low risk investment with strong returns.
House prices in the north east of England are the lowest in the country and are perfect for those with some savings looking for a safe place to invest it. As the population of the UK increases so does the demand for housing and the value of property. This means that even in the event of a market crash, property will always bounce back to its original value. The only exception to this rule being the UK suffers huge population loss through war or natural disaster, in which case losing money on property investments will be the last of your concerns.
The north east of England attracts thousands of new faces every year that are all looking for temporary housing. They aren’t looking to buy but to rent. Students are a great source of continuous revenue. All while there is a University in the area there is a consistent demand for rental properties.
Newcastle, Durham, Northumbria, Teesside and Sunderland all have between 15,000 to over 23,000 students enrol each year, many of them looking for somewhere to live. This can make your buy-to-let investment a steady earner immune to economic shocks, so long as you do it right.
The high rental yields found amongst student let properties aren’t entirely immune from different problems and stress that you wouldn’t otherwise find with other tenants. Young people who have recently discovered the joys of alcohol and are enjoying a new-found freedom away from their parents aren’t always the easiest to work with. They do however come with a reliable get-out-of-jail-free card though in the form of parents who often serve as guarantors for damages or missed periods of rent.
You Can Choose Your Work Rate and Profit Margins
However, many landlords see this high demand as a way of saving money by not always ensuring property maintenance is done correctly. This shoots themselves in the foot. More responsible and mature students that are less likely to cause you problems as a landlord will typically organise renting a house well in advance of the academic year. This means that the best properties go quickly and to safer more reliable tenants. The less well-kept properties will be left to those who waited longer and are assuredly less-organised students.
If you get your location right and make sure your house is well kept, your property will be one of the first to be swept up meaning you will be able to plan your finances accordingly without last minute panics to find tenants. This does, of course, take some organisation and effort on your part but is well worth it for the high rental yields and assured income.
The other option is simply going through a north east property management company. While building a property portfolio can be exciting and a great opportunity to learn, if you are unsure or are caught for time having an expert do the work for you is a good option.
These companies will often help you find the right property and manage it for you, meaning you won’t lose sleep at night knowing that your tenants have been throwing wild house parties all week. While you will certainly earn higher profit margins the more work you do yourself, it’s an option worth considering. You can always use the service until you find your feet and feel comfortable managing your property yourself.