Property Investment In Edinburgh in 2021
Ring out the old, ring in the new… With a worldwide pandemic impacting our lives in 2020, none of us will be sorry to see the back of the year and make a fresh start in 2021.
The new year is a good time to take stock of your finances and make decisions about short, medium and long-term investments. Low interest rates mean pensions and traditional savings now offer a poor return, but there is another option for medium to long-term investment that has great potential – and it’s less of a headache than you might think.
Edinburgh letting agents are finding a buy-to-let property is increasingly popular because it’s more tangible than other forms of investment and in recent years has proved more profitable too. On average, rental properties have an annual rental yield of around 6% compared to savings account interest rates of around 0.6%, which are based on the current Bank of England base rate of 0.01%.
Even tying your money up for longer periods in savings plans doesn’t guarantee a great return. Property consistently outperforms other types of investment – and you can see where your money is going!
The government’s free and impartial Money Advice Service offers comprehensive information about buy-to-let investments and explains how money can be made both through capital growth (selling the property for more than you paid for it) and rental yield (what your tenants pay in rent minus any costs for maintenance etc).
First, you’ll need to make sure you buy a property in an area where there is rental demand. Properties where there is a large student population, or in exceptionally desirable locations, can offer a higher than average yield.
Every investment comes with risk, and you might be concerned about not finding tenants, time-consuming maintenance and property management and a host of other issues that go hand-in-hand with owning a buy-to-let property.
But you don’t have to do everything yourself. Using a property management company like Edinburgh’s leading letting agents Clan Gordon takes the stress out of owning a buy-to-let property, offering expertise and professional support every step of the way.
An established property management company can be there right from the start, even offering advice on where to buy a property and the rental yield you can expect dependent on area and property type.
They know the pitfalls and have wide-ranging experience, having dealt with dozens of landlords and tenants, so it’s worth making them your first port of call when you’re thinking of making a buy-to-let investment.
Once you own a property, they can manage everything to ensure you meet all your legal obligations, find reliable tenants who pay on time and keep your property well maintained.
They’ll draw up contracts, keep up-to-date with current legislation, oversee maintenance and repairs and be the main point of contact for your tenants – so you don’t have to take the 3 am call when a pipe bursts!
If you’re ringing the changes in the new year and making decisions about your investments, it’s worth considering the benefits of buy-to-let property ownership.
If you’d like no-obligation information and advice, call Edinburgh letting agent Clan Gordon team for a chat on 0131 555 4444 or schedule a call.