Win win for Penicuik landlords – capital growth and rental yields are higher than in Edinburgh!

In Penicuik, I am speaking to more and more landlords, be they seasoned professional landlords or FTL’s (first time landlords), as they read the Penicuik Property Blog that shows that the Penicuik rental market is doing reasonably well, with rents and property values rising. 

When I was having a chat with one of these landlords over a cappuccino in Cafe Marmaris the other day, he asked me two completely unrelated questions that got me thinking.  The questions were, how much faster are Edinburgh property prices increasing than Penicuik ones and how much he should be paying per square foot?

Interestingly, we both thought that obviously Edinburgh property prices would be rising faster than Penicuik property prices but, going by my mantra of ‘never assume nuthing’, I did my research and was astounded by what I found.

Over the last twenty years, property values in Penicuik have risen by 270.51%, compared to Edinburgh’s 266.48%.

This is an astounding result as it turns the historical view of the capital growth vs income see saw on it’s head.  The capital growth vs income see saw says that the higher the capital growth the lower the rental yield and vice versa. 

However, the property values research I did means that not only has capital growth been greater in Penicuik than in Edinburgh, but your investment money also goes further in Penicuik as properties are cheaper meaning there will be higher a rental yield – in Penicuik you can get easily 6-8% whereas in Edinburgh you are lucky if you get 4-5% per year.

Whether you are a landlord, a ‘Homes Under the Hammer’ addict or just a homeowner who is interested in what is happening to the local property market, then please visit the Penicuik property Blog (www.penicuikpropertyblog.co.uk), contact us for a chat (phone us on 01968 674601), come and see us in our offices (6 Bank Street, Penicuik) or email us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).