UK landlords are taking to major cities throughout the UK for investments in buy to let property. With buzzing cultures, masses of regeneration and a plethora of employment opportunities – it’s obvious why both tenant and investor hunger for property remains so dominant in urban centres. However, some buyers have discovered a new way to invest their money, and it doesn’t involve city centre locations…
When you think of the suburbs, you can forgive yourself for imagining wide roads with semi-detached houses lined with trees and white picket fences. You’re not wrong. Although, areas outside of the city are proving just as popular for new residential properties designed for modern tenants and there are tons of pros for a suburban property investment.
The first benefit of investing in the suburbs is that it’s significantly more affordable. If you want to invest in a property and escape steep city prices, then a suburban development could be just for you. You can obtain larger apartment units or houses with more rooms for less money than what you’ll pay in the heart of the likes of London or Manchester. For example, a tiny studio in a city centre zone might cost you more than a 2-bedroom apartment just 15 minutes away. Investors aren’t only paying for their property but are also paying for the area, and as trends suggest, cities are always going to be more expensive and are experiencing rapid growth rates of up to 30% over the next four years.
2. More Choice of Tenants
Secondly, a wider range of tenants can be targeted with buy to let investments in the suburbs. Usually featuring schools, quieter streets, a community feel and lower crime rates, families and young couples planning to expand their home unit can be ideal residents for apartments and houses just outside of the city. Although high-rise apartment blocks slap-bang in the middle of a business hub might be attractive for graduates and young professionals, it’s unlikely that a family of four are going to want to live in a building of this nature and in this type of location.
3. Diverse Property Investment
Tenants can have the best of both worlds in outer-city settings with natural landscape features like beaches on offer close by to new developments. More leisure activities such as marinas and golf clubs are also usually standard for the suburbs which are considered to be generally more affluent. Features like this are hard to come by right in the thick of a UK metropolis. Plus, in today’s modern world, transport links are second to none and tenants can get escape the peaceful streets and reach the bustling city in short journey times using public transport or even by car.
Property investment firm RWinvest offer a whole host of investment properties, but are tapping into the suburban trend by locating golden areas such as Crosby which is just a 15-minute train ride into Liverpool city centre. Supplying amazing rental yields of 7% and more, assured for multiple years, areas like this epitomise the cost-effectiveness of buying into a property away from a main town where prices are cheaper but rental yields are just as good.