Liverpool offers best buy-to-let postcode for 2020

SIX OF the 25 postcodes listed in the TotallyMoney’s buy-to-let areas in the UK were listed as Liverpool. L1 came out on top of the list since it offers the best and highest yield of 10%. This is the second time the city has been named within the top postcodes, and it only shows how much regeneration is changing and growing the city. Northern cities are currently popular when it comes to property investment since they’ve overtaken southern cities such as London due to higher property prices and rental demand. Liverpool is a city of rich culture and vast history which has meant it is home to some beautiful landmarks and areas. Within recent years, people (especially investors) have started to look towards the North since the property prices are more affordable and the yield is larger, but there is still room to grow and develop the cities. 

What should you look for when purchasing a buy-to-let property? Liverpool is a top city, but how can you tell when a city and a property is worth putting your money into?

Below is a list of things to look out for when you’re starting your first/next property venture…

High rental yields

Rental yield is the return an investor is likely to achieve on a property through rent. It is a percentage figure that is calculated by taking the yearly rental income of the property and dividing it by the total amount that has been invested in the property. The higher the rental yield on a property, the better. Finding out a rental yield is a good way to measure a property’s potential return, but it’s not always the end calculation. You must consider your financial situation before investing since your yield won’t be as high if you’re choosing a mortgage alongside some of your cash. The average rental yield in the UK is around 5%, but some cities like Liverpool have average yields of 10%. This is impressive, and the yield can be a deciding factor for those who want to make the best returns.

Affordable prices

Property prices can get expensive, but if you can purchase an investment that is affordable then you’re sure to see a positive impact on your finances. If it’s the case that you can only afford a cheaper property then don’t be disheartened, there is plenty of room to grow your portfolio when you’ve got some more money in the bank. Property investment company RWinvest has multiple high-yielding, affordable properties within high demand cities like Manchester and Liverpool. Their properties are offered to investors with below-market value prices and exciting amenities that every investor should want to take the opportunity. 

Tenant demand

It’s important to have tenant demand, as if you don’t, there won’t be any need for having a property to let out. Tenants who want to live in your property are the bread and butter of your investment, they ensure you acquire your monthly payments, and they keep your property tenanted. Larger cities will have a higher tenant demand than smaller ones, but it’s actually surprising the high number of tenants who are interested in suburb living and will opt for a property that isn’t in the city centre. Ensure before you complete your investment journey that you have a picture of your tenant audience to be sure there is a demand there for the property you love.

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