Birmingham Best in UK for BTL Rental Yields
According to a report published by LendInvest, Birmingham has taken pole position as a buy to let investment hotspot, representing the best value for new landlords in Q2 2015.
At the end of the second quarter the data shows landlords in Birmingham, Ipswich, Liverpool and Glasgow are benefitting the most from advantageous rental yields.
LendInvest , who prepared the research gathered data for new tenancies from postcode areas throughout the UK and found four of the 10 highest rental incomes were in Birmingham: B44 yields 13.6% annually, B42 11.9%, B98 10.5%, B23 9.1%. Others in the top 10 were postcodes in Ipswich 10.8%, Liverpool 9% and Glasgow with G34, G21 and G22 yielding 11.9%, 10.1% and 9.2% respectively.
Using 1,000,000 sales and 500,000 rental listings provided by Zoopla, LendInvest took the average asking rental price per year and divided it by the average property asking price to calculate yield and then sorted the numbers according to postcode areas.
The Midlands provides a great investment opportunity
Jane Morris, managing director of Property Let by Us said: ” Many landlords tend to invest near to where they live but if they look further afield, they could easily increase their yields and capital growth. The Midlands provides a great investment opportunity as the property is much more affordable than the South East and the yields are high. For example, in Coventry, a three bed semi will cost around £125,000 and will provide rental yields of around 6.57% “.
British BTL investments have risen in popularity in the last two years, receiving a further boost earlier this year when changes to pension regulations kicked in, introducing in excess of 200,000 new investors to the market.
UK property markets have been dominated by investors for almost two years amid rising concerns of affordability issues for families struggling to get on the property ladder. According to homeless charity Shelter, 80% of UK homes are unaffordable to a family of renters earning average wages seeking to buy their first property.
In London, the charity identified just 43 properties they classified as ‘genuinely affordable’ including a houseboat and mobile homes.
A poll conducted by Huffington Post just prior to the May elections revealed that around 19% of private renters in the UK need help from family and friends to pay rent.
In essence, the figures indicate the potential rental yields achievable in certain areas based upon fresh tenancies during the respective quarter. How those figures stack up over the longer term and what is actually received by the landlord in rental income each year, remains open to question.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Dubai Sports City a Run Away Success
With Dubai investing heavily in its infrastructure ahead of hosting the 2020 World Expo, several major residential developments have been kick-started after work ground to a halt following the financial crisis.
Dubai Sports City, part of the huge Dubailand development is one of the ambitious projects attracting increasing buyer interest in the Emirate. The 5 million m² community currently home to 15,000 people across 6,000 apartments and 1,000 villas is expected to house 70,000 when it is completed in seven years.
The development has been a major Dubai real estate hotspot since 2013 when the project was resurrected after falling by the wayside in the aftermath of 2008’s global financial crisis. The mixed-use residential area is built around a number of world-class sporting facilities, some of which are still under construction or planned for the future.
A number of the residential components of Sports City have been delivered although there is still a lot of construction activity in the area. Of existing projects, 70% of villas and 60% of apartments are occupied and Sports City expects to attract 5,000 residents this year as the mixed-use project continues to gather buyer interest, swelling its population to 20,000.
The world’s first integrated purpose-built sports city
In February, GGICO launched apartments targeting middle-income families with price tags starting at €200,000. The offering sold out within weeks, boosting expectations of the development’s take-up rate over the remaining seven years to completion.
Dubai Sports City is the world’s first integrated purpose-built sports city, featuring 5 international sports venues and a series of major sports academy facilities. The area is supported by excellent infrastructure for resident families with retail parks, schools, leisure facilities, cultural attractions as well as the wealth of sports options available.
Dubai Sports city’s chief financial officer, Vijay Sajjanhar said: ” We have a great mix of residential, sporting facilities and food and beverage outlets which are proving big success stories. We are running a marathon, not a sprint, ” referencing the development’s long term goals as part of the Dubailand mega-development.
Article by +Roxanne James on behalf of Propertyshowrooms.com
The Rise of the First Time Buyer in South Africa
The young professional demographic in South Africa has expanded to the degree that more young people are in a position to buy their first home much earlier than their peers a couple of decades ago.
The increase in first time buyer activity in South Afr…
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