Are you planning to invest in your first property? If so, the first thing you need to think about is where you’re going to invest by establishing the best locations. While the majority of investors tend to focus on city centre investments, there is still some interest in countryside property. To help you with your decision, you should take a look at the following location guide which will help you determine which investment is right for you.
When looking for a home, people tend to look for somewhere safe and comfortable, which is precisely why the countryside is so appealing. Although, the majority of people that move to the outskirts are retirees who have moved away from busier areas to relax and enjoy their retirement. By moving to the countryside, they can escape the beeping and screeching noises which can be found in central regions and swap this for the sounds of nature.
Another benefit of investing in the countryside is that it is more attractive to buyers or renters who are looking to lead a more frugal lifestyle. In comparison to the city, house prices and utility bills are much more affordable for both residents and investors. However, those looking in rural areas should consider the travel costs as well as the lack of convenience for living in the sticks, as there are fewer employment opportunities which means you will have to travel a lot while wasting money on petrol.
Investors must also consider who they’re targeting when buying a property in the countryside, as more than likely the main demographic will be older generations, as statistics show that only 30% of people living in rural areas are of working age. This means you will have limited tenant demand, which will affect your investment profits as a whole.
In recent years, UK residents have become more drawn to the city-centre lifestyle having moved past issues such as noise pollution and the cost of living, as cities have become less congested and more affordable. This is evident through the rise in population in central areas. This increase is more apparent in cities like Manchester and Birmingham who are the two contenders in the race for the title of the UK’s second city. Manchester has experienced a 149% increase and Birmingham has seen a more significant surge of 163% of residents living with proximity to retail and commercial areas in the city centre.
The city that has experienced the biggest increase is Liverpool, with a massive 181% increase. This is due to the significant amount of regeneration within the inner city, including initiatives like Liverpool One and the ongoing Liverpool Waters Project. There has also been a massive improvement in the residential market, with luxury developments being built in Liverpool and beyond. Liverpool-based property experts RW Invest have been a big part of this regeneration by working with reputable developers to offer investors lucrative buy-to-let opportunities in the most upcoming areas in Liverpool and Manchester.
With the increase in population comes a massive surge in tenant demand, especially amongst young professionals and students who are looking to be located near their workplace or university. By investing in an area with high demand, you should expect to receive maximum profits in the form of rental income, as tenants will be willing to pay more for a property in a prime location.