09
Jul
2019

Scotland is a buy to let hot spot for investors

Scotland is the best place in the UK for buy to let investors to recoup the cash put into an investment property.

The statistics show property is a long-term strategy as landlords in Scotland take an average 17.7 years to clear the price paid and stamp duty outlaid on day one of the investment.

Glasgow is the best UK property hot spot - taking an average 13.3 years for landlords to make their money back. Aberdeen takes the second place with 17.8 years.

Property investors are paying an average £129,764 for a rental home with £5,190 stamp duty - totalling an investment cost of £134,954.

Rent is around £10,140 a year, giving around 13.3 years to see the property outlay back in the bank.

“Buy to let investment is a complicated business, even more so given the changes to the sector of late, however, the primary indicator of a good investment is always going to be the rental yield available,’ said Marc von Grundherr, director of Benham and Reeves, the firm collating the data.

“While a buy to let investment includes all sorts of additional concerns such as contingency budgets, capital growth and so on, we wanted to highlight on a more digestible level where offers a good investment option when it comes to recouping the cost of that investment via your rental income.

“What this research demonstrates is that while buy to let remains a lucrative business despite the Government’s attempts, it should be viewed as a long-term one and not a method for making a quick buck. For those serious about the sector whether it be as a professional or amateur landlord, it’s important to understand the commitment before diving in if you wish to see a profit.”

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