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Where Should You Invest?

News

Where Should You Invest?

23/04/19

In the age of inflation and an uncertain economy, ‘money saved is money earned’ no longer holds true. You need to make your savings work as hard as you do. With dismal interest rates and an unpredictable political climate, there is no point in parking your savings in a bank account.  To beat inflation and secure your future, you must have a strategy to manage your income well and outpace inflation.  Investing in property is one obvious way of managing your wealth and generating a secondary income stream. Rental yields and the potential for capital gains have made property investment a consistent choice for many investors.

But where should you invest? 

One of the most popular choices for property investment is Liverpool. The city has been undergoing extensive regeneration works for over a decade and plans to redevelop 5 miles of the historic waterfront are set to take 30 years. Here are some reasons why you should consider Liverpool for your next property investment:

Major Shopping Destination 

Liverpool has undergone a drastic transformation ever since Grosvenor Estates took charge and redeveloped the heart of Liverpool into a shopping, residential and leisure complex. Liverpool One is one of the largest shopping complexes in the UK and quite different from other shopping centres. It is wildly popular today as one of the top shopping hotspots in the UK.

UK’s Buy-to-let Capital 

Liverpool consistently ranks as one of the top choices in the country for landlords wanting to earn the highest rental yields.  For example, the L7 areas that include Edge Hill and Kensington just outside the city centre, have the best rental returns. Whereas L6 and L1 come close with average rental yields around 11.52% and 9.36% in rental returns.  The reason for this is due to the low house prices, high demand for tenants and good rents. If you are an investor looking to diversify your portfolio, there are new properties and developments constantly added to the market.

Great Value Properties 

Liverpool has one of the best earnings to house price ratio in the UK. Properties typically cost around 4.8 times the local annual salary. Liverpool has truly benefited from the major overhaul that resulted from its success as the European City of Culture in 2008. In 2018, alone Liverpool saw the average house prices rise by 5.9%, above the UK’s 4.3% average. This trend is forecasted to continue over the next few years.

Student Property Investment 

Liverpool is a popular choice for investors looking at student property from a buy-to-let perspective. Starting from Granite House on Stanley Street near the hubbub of Liverpool’s retail district to L1 and L3(many of the campuses are on L3, including the John Moores University, the University of Liverpool and The School of Tropical Medicine). Even L5 that covers Vauxhall and Everton area has attracted significant investment.

Government Funding 

Liverpool has access to a lot of government funding than it did in the past, owing to major redevelopment and regeneration. This funding plays a huge role in transforming the city and attracting more people, generating more jobs and increasing the demands for housing.

Rising Interest From The Overseas 

Not only has Liverpool caught the attention of UK-based property investors, but it has also attracted investors from over the world. Many from the Far East, in particular, are investing heavily in Liverpool’s property market, leading to a rise in demand for property. This results in a higher appreciation of property and better rental yields.  With rental prices increasing year-to-year in Liverpool, wide-scale transformation and development projects, new employment opportunities and a thriving student population. Liverpool is a safe bet if you are starting to build your property investment portfolio in the UK.

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