Investing In property in edinburgh
Ring out the old, ring in the new! If an Edinburgh buy-to-let is top of your list for 2023, how do you know which property is a solid investment or what rental yield you’re likely to achieve?
Buying property to let in Edinburgh can provide additional income and offers the opportunity for you to grow your initial investment. However, it’s important to make the right choices. Making a purchase in a less desirable area or paying over the odds thinking you can command a higher rent than is realistically achievable, can have a significant impact for many years to come.
Where and what property for buy to let in Edinburgh?
Choosing the best location is important. The right property type also makes a big difference to the rent you can charge and the number and quality of potential tenants. The property market experiences fluctuations for many reasons, so expert knowledge of the local area and rental market is key. An area that’s been popular for some time can suddenly change if the local schools are no longer top of the league tables or an undesirable business opens nearby.
So if you’ve got money to invest but are new to the lettings market, how do you make those all-important decisions?
Do your research into the Edinburgh rental market
There is a lot of useful information online that can help to inform your decision. One great source is the quarterly Citylets reports. They’re based on more than 50,000 lettings records and provide the most current data on the Scottish residential lettings market.
The reports are published every three months and offer unbiased information about trends and rents in Scotland's main cities, including Edinburgh. They are a vital tool for landlords and agents and a useful guide for tenants and people looking to buy a rental property.
Visit the area at different times
If you’re buying a property in an area you don’t know well, it’s worth visiting at different times of the day and on various days of the week to check out traffic issues, noise problems and any other red flags.
A house that appears to be in a traffic-free street at the weekend can look very different at school pick-up time, and a quiet area midweek can be packed with football fans heading to the match on Saturdays.
Ask the locals
Another way to find out about an area is to ask the people living there. Drop into local shops and ask if it’s a place where people tend to stay or somewhere with constantly changing residents, which can be a warning sign.
Ask about any local problems such as flooding, break-ins or anti-social behaviour. Equip yourself with as much information as possible before you commit to buying a property.
Get expert insight from local letting agents
Local letting agents should have their finger on the pulse when it comes to understanding the latest picture on the rental market. They should quickly be able to give you a good indication of the rental yield you’re likely to achieve for properties in particular areas. They should also be able to give you a steer on areas that may be less popular for tenants and up and coming areas that could prove excellent investment opportunities. These are all services our team of property management experts can provide for you completely free of charge.
The condition of the property can have a big impact on price, together with the desirability of the area, the number of rooms and availability of outside space.
Since the pandemic, tenants’ priorities have changed. With more people working from home, extra rooms that can be used as offices and gardens have become more desirable. The need to be near the city centre or close to good transport links has lessened so the popularity of areas has changed significantly.
Get Expert Advice
If you’re completely new to the buy-to-let market, the best option is to get expert advice. At Clan Gordon, we’ve been looking after rental properties for Edinburgh landlords for more than 15 years and currently support more than 500 landlords across the city.
Schedule a call now and find out how our award-winning service takes the headache out of letting.