Investing in Glasgow

Glasgow dominates as the ideal investment location in Scotland for landlords. One of the latest data from Your Move Scotland reports that landlords in Glasgow, between April and May saw a faster rise in rent than in any other place. According to the report, the rental prices in Glasgow and Clyde increased by about 1.9% month-on-month. This is far much ahead of the 0.2% average that’s realized across Scotland.

Scotland Rental Prices

Rental prices in Scotland have on a yearly basis increased by 1.7%. This is mainly due to the strong price growth in the Highlands and Islands. The average rent within Scotland now stands at £582 although it’s adjusted seasonally. On a non-seasonally adjusted basis, the average rent stood at £589 in May. During the month of May, rent rose in most of the areas within Scotland as the market demand also increased.

When evaluated on a monthly basis, it’s Glasgow and Clyde that reported the strongest increase in prices as the average rent increased by 1.9% between April and May. The move kind of reversed a recent trend of falling rents within the city as the average rent stood at £597. Such a move helped in placing ahead of the Islands and Highlands as prices increased by 0.6% on a month-to-month to reach £692.

Why Glasgow Dominates

The region has so far regained its position as the most expensive place to rent in Scotland. This comes after an average price rise of 3.8% that was realized last year and is faster than any other place. On an annual basis out of the five regions surveyed, four of them saw a rise in prices. The East part of Scotland experienced a rise in price at 2.7% to reach £544. The annual growth realized in Edinburgh and Lothians of 1.9% left the average rental prices standing at £689.

The South is the only region that experienced a fall in the prices as the typical rental property now going at an average of £542 which is 0.9% lower than a year ago. It also remains the cheapest place to rent property in the country.

On a national basis, there has been an increase in the average Scottish rental price by 1.7% over the year to May. The average now stands at £582 each month as seasonally adjusted. The figure is about 0.2% higher than that of a month ago. The non-seasonally adjusted rental average was at £589.

Here are some of the reasons why Glasgow dominates the Scottish rental market;

Encouraging trends for landlord returns

According to a report by Your Move Scotland, landlords continue to enjoy strong returns. This is because yields have remained at their strongest level since the month of November 2018. There has been an increase in yields from 4.6% to 4.7% in March being the first time for such a rise to be seen since in two years. The level of increase has also remained steady for three consecutive months into May.

It, therefore, means that investor returns continue to favorably compare to those that are found in England and Wales. North East and North West were the only two regions that offered higher returns than the Scottish rental average this month. The rise was at 5% and 4.8% consecutively.

Stability in Tenant Finances Shows why Glasgow Dominates 

According to a report by Your Move Scotland, there was a level of stability in the proportion of tenant arrears in the month of April and May. 10.1% of the tenants in this month encountered a form of a financial challenge. This is a similar ratio to the previous month. The figure is far much lower than 10.7% which was recorded in March. The number of households that had serious arrears for two months or more was 10,192.

New Regulations for Landlords

In just under a year, the new regulations involving energy performance certificates are likely to come into force. By the 1st of April 2020, rental property will be required to have an EPC rating of band E at least. Scotland’s letting Agents such as Your Move have committed to spending their time informing landlords of the upcoming changes.

This is to enable the landlords to make the necessary preparations so as to abide by the regulations. Landlords that fail to comply are likely to face fines. The fines may go up to £4000 if their property rating fail to meet the required standards. new regulations for the landlords is something that they should start thinking of.

The Lettings Director of Your Move Scotland; Brian Moran said, “Although the property purchase market may have slowed in some areas; demand for rented homes continues to outstrip supply. this was strongly witnessed in the Islands and Highlands.region. The prices in these areas have leaped in the past years.

The major cities of Scotland; Glasgow and Edinburgh have also shown impressive monthly figures. That has also demonstrated the enduring popularity of the areas. It’s therefore quite clear why Glasgow continues to dominate the Scottish rental market. As long as the demand for rental property continues to soar, there is a clear indicator that landlords can benefit from rental property investments

In conclusion

Glasgow dominates the property investment in Scotland and you can also position yourself well and make a leap into the market. Are you considering venturing into property investments and not quite sure of how to get started? Why not get assistance from property investment experts. Check out some property information for more insight on lucrative property investment opportunities that you can take advantage of. 

Investing in Scotland

Investing in Scotland has become the desire for many property investors and there are a number of reasons that contribute to that. Scotland is increasingly becoming the most preferred place for investors in the UK region. Of course, there are many reasons for that as much as the weather isn’t one of them.

From a culture of workplace innovation, creativity, and international ambition, there are a number of things that attract foreign investors to Scotland. The beautiful landscape; a wonderful infrastructure alongside a supportive business environment are some of the reasons.

Here are some of the reasons why you should consider investing in Scotland;

Availability of Skilled Talent is key to Investing in Scotland

Despite being a small country, Scotland has the highest concentration of Universities in Europe and that translates into the accessibility of a very highly skilled workforce. Over 50% of the working population in Scotland has higher education qualifications.

The Universities are not only training a workforce for tomorrow but are also producing spinouts at a terrific rate. Quite a number of companies are being formed based on research undertaken in Scotland than in any other University within the UK.

Many People Enjoy Living in Scotland

Scotland is famously known as a hub of innovation and provides investors with a good environment for work-life balance. From the excellent transport links, thriving urban social scenes, and stunning countryside; there are a lot more that investors can enjoy as they live in Scotland.

Scotland is a happy and friendly nation and whether you choose to work, invest, or visit the country, you can be assured of receiving the warmest welcome. Edinburg and Glasgow rank as some of the friendliest cities in the world.

Property Investment Hotspot

The property market in Scotland has remained resilient despite the recent political uncertainty. There are shorter property selling periods in Scotland than in the UK. Scotland offers a favorable business environment for investors through the provision of incentive friendly deals. If you’re interested in a business location that offers connections, expertise, products, and services that you might need then Scotland is the place.

Scotland Offers Value for Money

On average, hiring workforce in Edinburgh costs 33% lower than in London. The cost of living is also far much lower in Scotland than in other parts of the UK. The costs of housing in Edinburgh are 35% lower than in London with the costs of transportation also at 48% cheaper.  The renting costs of Edinburgh are also estimated to be less than half of the London properties.

Scotland is an Innovative Country

The history of innovation is well known in Scotland with revolutionary innovative ideas such as the steam engine, television, and more. It is the country that transformed communication with the invention of the telephone. Scotland has some of the world-leading universities, research institutions, and colleges that have so far paved the way for some of the exciting developments in technology, aquaculture, and big data among others.

Innovation is key for businesses and could be what translates to either failure or success for the business. Innovation is embraced in Scotland, where innovation is taught, felt, and also incorporated in the people’s daily way of life, work, and play.

Financial Powerhouse

Europe’s major leading influential and financial hub is Edinburgh. This has been as a result of the activities involving financial services that have led to many investors making some ambitious strategic investment decisions. There has been a surge in fintech both with established businesses and start-ups. Scotland’s fintech community is growing quite fast and the country has been ranked for five consecutive years as the best performing destination for inward investment outside of London.

Scotland is growing quite fast and has one of the highest employment rates in Europe. Its cities are thriving business hubs with the key cities being among the top cities outside London.

Scotland is a Nation for Self-Starters

This country is home to Edinburgh which is the most Entrepreneurial city in the UK. The aspect of good schools, affordability, hospitable people, and accessibility to world-class nature are some of the key things that appeal to self-starters. The quality of life alongside a supportive business environment is another key thing that makes Scotland attractive for self-starters. It is also home to some of the world’s biggest and innovative companies.

If you’re considering starting a business then Scotland is definitely the best place to start.

Collaboration as a Top Priority

In Scotland, there’s a common belief that great things happen when people work together. It’s due to this fact that Scotland has several collaborations between Universities and Industries than any other country. Scotland Universities work with about 26,000 companies every year as they explore on turning ideas into products and services.

Scotland has a history of friendship and collaboration that cuts across every aspect of the society from academia, tourism, cultural exchanges, business, trade links, and more.

Efficient Connections

Investing in Scotland is worth considering due to good transport links that exist both internally and externally. The improvements in the transport links have made accessibility within the country to be easier. The country has 5 International Airports providing travel to 150 destinations. It, therefore, becomes easier to skip to a one-hour flight to London or on a longer-haul one to New York. When in Scotland, one can easily travel between the two major cities, Glasgow and Edinburgh within an hour.

Great Track Record

Scotland is a key investment destination for overseas companies and for six years in a row; it is ranks as the top location for foreign investment outside of London. Over 5100 global companies are also set up in Scotland and this is due to a number of factors such as the healthy market activity, lower property prices, accessibility, and more.

The government has created an environment that supports companies to grow, innovate, and also access markets. Such a move helps with ensuring that Scotland remains as one of the top destinations for foreign investment. Scotland has a great track record for an educated, skilled, and adaptable workforce that foreign investors can engage for business growth.

Get more information on property investment that can be of help to your property investment journey

 

 

best investment returns

When considering venturing into property investment that can give you the best investment returns; there are some of the best cities in the UK that you should consider.  Property investments in the UK cities tend to offer the best returns for landlords. The yields obtained from property investments in the cities tend to outpace that of the Coastal homes that are in the countryside or coast as much as they are more picturesque and appealing.

According to a 2019 report by Howsy, a UK Rental Property Management Platform; the average rental yield from the 20 most lucrative cities for Landlords in the UK, was 5%. In comparison, the UK rental yield provides investors with returns of 3.56%. In order to calculate rental yield, you should divide the annual rental income by the price paid for the property.

Here are some of the UK cities that offer the best investment returns for landlords;

Glasgow

According to a report by 2020 report by Howsy, Glasgow in Scotland heads the list of UK cities that has the highest rental yields with the average yield being at 7.93%. Glasgow is sometimes referred to as the second city after Edinburgh which is the capital of Scotland. Glasgow is, however, much bigger, with a higher population, a bigger economy, and the market too. There are a number of reasons why landlords should consider Glasgow for property investment.  Glasgow is the largest economy in Scotland and also the fourth-largest economy in the entire UK. There are new and emerging industries such as marine technology, health, and life sciences, biotechnology, digital, and creative among others.

Belfast

The UK market as much as it’s cyclical has been proven to be a successful investment and such has resulted in a massive expansion of the buy-to-let property sector. Belfast is such an ideal location for property investors as its one of the vibrant cities in the UK with a robust growth that’s more likely to continue. Belfast is home to some of the modern infrastructure which is still being improved to help cater to the growing population.

The affordability of residential property is one key thing that makes the city suitable for landlords. There is also a growing demand for high-quality rental accommodations for young adults, students, and international visitors. Belfast, Northern Ireland comes second in the list of some of the best investment returns for landlords with the yield standing at 6.55%.

There is also a growing need for commercial property. With Northern Ireland being the key filming location for popular TV series such as Game of Thrones; it has also helped in promoting the city to the global tourist market.

Nottingham

Nottingham is not just a perfect place for property investors; it’s also one of the best cities with the highest yield in property capital. According to a research carried out by Mortgage Broker Private Finance, it indicated that the average rental yield stood at 5.6%, Investments also tend to perform well in terms of capital growth as it was predicted that Nottingham is more likely to realize an average house price growth at the rate of 0.8% per month.

It, therefore, means that the property price is more likely to increase with over 100% between 2019 to 2027. The attraction to Nottingham is influenced also by 25% of its population which are aged between 16 – 24 years. This is a key prime demographic that will be more interested in rental property as they get started in their career.

Manchester 

Manchester City is one of the UK’s standout locations for property investment. Affordable property alongside high rental yields is some of the key things that attract investors to this city. The city has a strong local economy, high population growth, and an all-round appeal that makes it ideal for landlords interested in high returns. The average rental yields in Manchester are at 5.45%.

Manchester’s city is home to a number of UK’s leading public companies. It also has such a booming financial and professional services sector. The city has such a fast-growing and future-proofed economy that makes it appealing to investors. While other cities struggle with the weight of traffic, Manchester is working towards providing quality transport options that visitors and residents demand.

Get more information about the property market and investment options that you can opt for.

Coast and County

For landlords seeking for cities that offer the best returns, it’s important to note that these cities are the most preferred place for buy-to-let property investment. This is mainly due to the higher level of rental income, and the ever-increasing demand for rental homes. According to Calum Brannan, founder, and CEO of Howsy, it comes as no surprise that these cities are homes to the highest yields overall.

Apart from that, the coast and county also prove to be quite lucrative going by what the figures show. There are plenty of options across both the locations that offer yields above the national average as reported by Howsy.

Countryside Market Towns also Provide Best Investment Returns

Countryside market towns are considered as the second-best investment options. From the windy streets, farmer’s markets to the picture-perfect houses, there are a number of things that make countryside market towns suitable for property investment. According to the top-20 most profitable market towns, the average yield stood at 3.72% in 2019. In the coastal towns, the average yield was slightly less at 3.59% according to the report.

If you are already into the property market and considering the best cities to invest in; you have a range of options to choose from. Investing in property has been known as a solid long term investment for landlords nut it only comes true when you make the right choice. Investment profits tend to vary based on where you choose to invest and that’s why making the right choice is important.

In conclusion

Take your time and explore some of the best investment returns that you can consider. Get more insight into properties and things you should take into consideration as you invest in the property market. 

Glasgow property investors

In today’s tough economic times, investing in property is proving to be a highly lucrative business option for investors. Glasgow property investors have increased due to the increased demand for rental properties. The majority of the people prefer staying in rented accommodation than buying properties and that has led to increased demand for a rental property in Glasgow. According to a report published by Hometrack in March 2020, the average value of UK properties has increased by 1.9%. This has been year on year since 2018.

As much as positive growth is always considered as a good thing; such figures when considered in isolation aren’t exceptional. When you take a closer look at the stats throughout some of the individual cities; it’s quite noticeable that real value can be realized in cities such as Glasgow where growth has been strong and evident for a number of years.

Here are some of the reasons why property investors flock to Glasgow;

Why Invest in Glasgow

Glasgow has to a great extent surpassed the UK rental averages in recent times. The city has so far experienced such a strong annual growth of 5% during the period 2018 – 2019. This is a clear indicator as to why a huge number of investors are considering Glasgow, the Scottish powerhouse for their next property investment. Clients should consider looking beyond the averages in Glasgow. They should instead consider securing properties that are growing at the rate of 6% – 8% per annum.

Glasgow city has an urban population of over 600,000 and about 1,8million in the wider Glasgow area. Glasgow city is also the driving force behind the Scottish economy. The city is also renowned for its academic stature, culture, sporting prowess, and it’s also one of Europe’s most diverse and vibrant cities.

A Smart Connected City

Glasgow is located at the center of Scotland’s only metropolitan region. The city, therefore, benefits from a transportation network that’s well developed and that also enhances high connectivity. Doing business within Glasgow and the entire UK is therefore far much easier due to the smart connectivity within the city and beyond.

Digital connectivity is another key factor that contributes to the flocking of investors into the city. Glasgow meets and even exceeds the demanding technological requirements and expectations of a modern business community. The city is undergoing a digital transformation, and a large investment is in full fiber digital infrastructure across the entire city. The investment in digital connectivity in Glasgow’s core infrastructure is delivering gigabit-capable broadband to almost all of the public sector buildings and businesses within Glasgow.

The modern digital infrastructure has in its foundation a technology that’s fit-for-purpose. Glasgow city is gradually rising in the ranks as UK’s digital leader, a key reason that makes the city attractive to property investors. Due to the high levels of digital connectivity, there is an increased level of innovation and productivity which also makes the city to be ideal for investors.

Voted as the Friendliest City in the World

According to Rough Guide’s Poll; Glasgow was voted recently as the friendliest city in the world. Publications such as Lonely Planet; National Geographic Traveller, and the New York Times have also mentioned Glasgow as a must-see destination. In addition, places such as Finnieston in the West End have been touted regularly as the trendiest place to live in within the UK.

From the culture, diversity of the city, the vast green spaces, and the historical aspects; there is almost something for everyone in this city. This includes the residents and visitors to the city.

The UK’s Third Largest Financial Centre

Glasgow has a modern economy that’s quite diverse and draws its strength from a number of sectors and subsectors. Over 48,000 businesses; 28% of which are Scottish companies that are established in the Glasgow city region. The sectors and subsectors support 856,000 jobs with 34% being Scottish. Glasgow city is also home to the impressive who-is-who of major global organizations, blue-chip companies, and the International SMEs.

Glasgow is the UKs third largest financial center and ranks among the top 50 in the world. Some of the biggest names in finance and global business, international leaders in areas such as medicine and pharmaceuticals, engineering, research services, and a vast range of global brands refer to Glasgow as home. Their presence in the city helps in endorsing the status of Glasgow as a world-class business destination.

The number of enterprises in Glasgow has over the past 5 years increased by approximately 25.9%. The increase is such a larger percentage than that of both Scotland and the UK. That’s a clear demonstration of the entrepreneurial spirit and business friendliness that exists in the city.

 Higher Student Population

Glasgow is one of the cities with the highest number of the student population in Scotland. It’s also the second-highest in the UK when it comes to student population. There are over 185,000 students from 140 countries that are living and also studying in Glasgow. The institutions of further education within Glasgow graduate over 20,000 students each year. That helps in ensuring that there is a steady and healthy flow of talent which is quite ideal for investors looking for a skilled workforce.

Whether you’re considering investing in property for the very first time or you are already a seasoned investor; it’s advisable that you consider investing in properties that guarantee the much needed rental returns. The increased demand for rental properties is a clear indicator that Glasgow has a higher potential for rental income.

Get information on buy-to-let properties in Glasgow that you can consider investing in. You can also visit www.gaucimagri.com for more information on property investment and some of the key cities that you can consider investing in.

GM Property Investments Hub

OUR SOURCING PROCESS

 

Based on our vast investment experience we’ve fine-tuned our property investment process to create an efficient, streamlined system for our clients. This allows us to secure property investments at the most competitive price and in the shortest time frame possible.

There are a number of key elements within our process. For some clients, each and every step is equally important and for others, some aspects carry more value than others.

For example, negotiation may be most important for some and have purchased numerous properties over several years we’re primed to apply professional negotiation skills on your behalf. Value can often be found “on the way in” when investing in property and its imperative to negotiate effectively.

Our intimate local knowledge may be the most crucial thing for you. We apply our expertise to handpick you high performing investments in key locations across the city. Equally importantly we’ll ensure you avoid investments in less desirable locations which could prove costly or problematic.

Accurate financial projections should be vital to all investors, and we can’t stress enough how crucial it is to run the numbers ahead of any potential investment. We provide accurate detail on your expected purchase price and all associated costs as well as what you can expect to receive by way of rent return and projected capital growth.

Whatever’s most important to you when investing the good news for our clients is that our two core products (Our Investor VIP and Investor Plus Services) contain each of the above elements in addition to several other key items.

OUR STEP BY STEP INVESTMENT PROCESS:

 

  • Initial Consultation: We help you clarify your property investment plans and establish a clear plan for what you’re looking to achieve. We also agree on a set budget before explaining all associated costs as well as the returns you can expect before then proceeding to the next steps.
  • Professional Services Introductions: Before making any investment it’s important to ensure you’ve engaged with relevant professional services such as mortgage brokers, accountants, solicitors and letting agents. We have partnerships in all these areas and will connect you to the right people.
  • Property Identification: Based on your own unique budget and criteria we identify all suitable investment opportunities in the marketplace (via on and off-market channels) before presenting them to you with all associated data.
  • Financial Projections: We provide a detailed financial projection of any property we propose, included anticipated purchase price, achievable market rent, and corresponding yield values. We’ll also include detail on the prospective tenant market for your investment as well as expected growth at the property.
  • Property Assessment: A member of our Investment Team will attend the property in person to provide you with a detailed assessment and to highlight any issues of note. We’ll also fully assess the Home Report (a system unique to Scotland) at this stage.
  • Professional Negotiation: At this key stage we open negotiations on your behalf with the selling agent. This is a vital part of the process and plays a crucial part in ensuring you secure your property at the most competitive price possible.
  • Connect to Conveyancing: Once successfully negotiated we then pass the matter over to your solicitor who will formalise the purchase of the property by conducting the conveyancing process. They’ll work with you to agree a “date of entry” on which the keys for your new property will be handed to you (or your letting agent).

To discuss our property investment process in more detail complete the form and a member of our Investment Team will be in touch.