Why should you consider buying to let in Penicuik?

We have mentioned in previous articles about the difference between Penicuik and the surround towns, such as Roslin and Loanhead, this always gets a response from people asking me lots of questions. This time, I wanted to highlight, why you should be looking at buying a property to let in Penicuik. 

Many people in our part of Midlothian, over the last few years, have seen the buy to let market become all about nest egg investment. It has been fuelled by pitiful interest rates on building society savings and reflects the fact that building society savings accounts are paying half a per cent interest and pension returns are struggling to match expectations, turning more and more people into landlords to secure their future. 

So what can you expect from your rental property investment? In the short term, rental yields are important, and in Penicuik, the average annual yield is in the order of 5.5% per year. However, that is based on averages, and as most landlords in Penicuik tend to buy starter home homes, apartments and terraced houses, the majority of which are achieving 6% to 8% per year depending on location and price in the town.

In the long term though, the question of capital growth is as important, if not more important (because if you have great short term yields, but the value of the property doesn't keep up with the rest of the market, you will have an asset that in real terms is dropping). As we mentioned in a previous article, average property values in Penicuik currently stand at £175,108. On the other hand, property investment is a long term game, so I wanted to share with you the research I did for a couple of Penicuik landlords. Property values in Penicuik have risen by 12.1% in the last 5 years. Roll the clock back 10 years to 2005 and property values have increased by 28.2% since then when.

So, not only can you get a better return on your investment with regards to the annual yield compared to savings accounts at the moment, you also have got the additional capital growth with a property. Penicuik is also still developing, with more properties being built and business opening and expanding. This, along with Penicuik’s close proximity to Edinburgh should make for a stable market, bringing new people to the area. This will also keep the demand for property high, which will maintain and grow the property prices further.

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Penicuik rental market for the first time, call us on 01968 674601, email us on robert@thekeyplace.co.uk / linda@thekeyplace.co.uk or visit our office at 6 Bank Street, Penicuik, EH26 9BG for further details. The kettle is always on and we are always excited to get stuck into finding new Buy to Let deals in and around Penicuik. Let us take the stress away from you.

Don't forget to visit www.penicuikpropertyblog.co.uk to view back dated articles and deals from the Penicuik Property Blog.