If you’re looking to Investing in City Centre Property market, urban areas are always recommended, and among the best performing spots.
But why are city centre apartments so popular among property investors, both experienced and inexperienced?
Well, here are some of the key factors in what make it so successful.
Affordability in certain areas
Looking at the UK market specifically, it goes without saying that London is an extremely expensive place to buy property, but in areas around the country that are growing in popularity, there are plenty of opportunities to make money.
Many northern cities in the UK, such as Manchester and Liverpool, are starting to spread the influence away from the once all-powerful south, with many moving their businesses and shifting north for a cheaper cost of living and more opportunity.
For investors, particularly those that are starting off and don’t have as much capital stored away to spare, the cost of property in the north is much more appealing and enticing.
Again in Liverpool, for example, the current cost of an apartment stands at about £148,522, as opposed to £533,300 in London.
This is according to current averages estimated by Zoopla at the time of writing.
This isn’t to say that London is not a good investment prospect, but it depends on what you’re looking for.
Experienced investors could get three properties for the price of one, and spread them across some different investment pockets in order to diversify and bolster their portfolio.
RWinvest a company with new modern apartment buildings in Liverpool such as Parliament Square – a luxury apartment build for professionals in the city – state in their guide to the area that the city continues to rank others nationwide for buy to let opportunity.
The Student Market
As more and more young people want to move into the city for university, the opportunity to make lucrative returns from the housing demand rises.
Student property developments are perfect for the first time investors, as they are typically compact and manageable, meaning there aren’t as many different factors to consider throughout the investment process.
If that wasn’t enough, student property as an asset class itself is extremely popular among investors, as it’s one of the top performing property types currently in the UK.
High rental yields are the highest in this type, giving you the strongest prospect for secondary rental yields.
Association with the surrounding area
As any experienced investor will tell you, the area that you decide to purchase property in is absolutely crucial in achieving financial success.
By investing in a popular city centre, not only will you draw in more tenants, due to the consistently increasing demand to live in urban areas, but you’ll also benefit from the surrounding growth.
Struggling to find a tenant with your city centre property? Another one of the many benefits is that you can actually leverage the surrounding regeneration to your advantage.
Look at some of the nearby points of interest and desired facilities, such as university campuses or popular nightlife spots, and use them as a marketing tactic.
The more central you are the more desirable a property tends to be.