Overseas buyers are seeking investment alternatives for lower cost investment property with higher rental yields such as the North West, as the property prices in London continue to soar coupled with low rental yields.
UK is acknowledged as the preferred choice for long term property investments by most overseas investors as regulations on property buying process and selling laws are systematize, the process of title ownership is managed with clarity, reducing one’s vulnerability.
London has remained uniquely resilient throughout the recession with continual demand from overseas buyers, who in no small part contributed to its price increases and declining rental yields.
However, there is a swelling number of investors who are venturing in other areas such as the North West for low cost property and increasing rental yields amid speculation of a cooling property market in London. Lancashire is one such town to see thriving demand of its low cost 2-bed and 3-bed houses.
In comparison, a typical 2-bedder house on the outskirts of London could easily cost more than a quarter of a million with around 3% rental yield than a 2-bedder house in Lancashire at around £55,000 which comes with 8% rental yield. In vague terms, that’s almost as good as getting five properties with potentially greater capital growth against an open option of owning just one house in London.
The relocation of the BBC and future developments such as MediaCityUK will urbanize the working and living environment of the North, convincing investors from outside the region on the potential aspects of the rate and demand from tenants, particularly the young professionals.
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