Thursday, 7 February 2019

Penicuik buy to let property opportunities compare well with Edinburgh ones

 

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 cup of tea in Haigs the other day, he asked me two completely unrelated questions that got me thinking.  The questions were, how is Penicuik doing from a property point of view compared to Edinburgh and how much he should be paying per square foot?

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

Over the last twenty years, property values in Penicuik have risen by 247.02%, compared to Dalkeith’s 247.00%, Musselburgh’s 244.65%, Linlithgow’s 247.00% and 247.01% in South Queensferry ….. and when you take a look at Edinburgh property values over the same period, they have increased by 248.26%.


This is an interesting result as it shows that Penicuik is doing similarly well to other towns around Edinburgh and these towns are it turn doing similarly to Edinburgh itself.
However, this is only looking at capital growth and it is worth taking into account other factors.
Firstly, there is income yield – in Penicuik and similar towns you can get easily 6-8% per year whereas in Edinburgh you are lucky if you get 4-5%.

And then there is the ease with which you can get a house.  It is difficult to get a buy to let property in Edinburgh that makes financial sense at the moment given the strong strong demand for people who want to live in the property themselves and are prepared to pay ‘over the odds’ to get this ‘dream’ property.  Whereas, it is easier to get a property at a sensible price in Penicuik and similar towns at the moment.

Therefore, whilst the capital growth in Edinburgh is a tiny bit more than in Penicuik, the higher rental yields and the relative ease with which you can buy a Penicuik property mean that Penicuik properties make good buy to let investment opportunities ….. so long as you buy the right ones of course!

What about the ‘how much he should be paying per square foot’ question I hear you say?  Well, that’s a topic for a future blog post .... watch this space.

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.thepenicuikpropertyblog.co.uk), contact me for a chat (phone on 01968 674601), come and see me in my office (6 Bank Street, Penicuik) or email me (robert@thekeyplace.co.uk).


#penicuik #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #privaterentedsector #prs #firsttimebuyers #lettingagents

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