Entering the property investment market can leave new buyers with many decisions to make. Along with considering the type of property to invest in, there are a whole range of other factors to consider. Deciding exactly where to invest can be tricky, and investors need to calculate the best place to buy to get the biggest return on investment.
For this reason the city of Liverpool should be a top consideration for every new property investor. There has been much development in recent years and Liverpool is emerging as a great place for investors to put their money. Low property prices and high rental demand means that Liverpool can be a wise choice for property purchases.
Liverpool has seen an influx of business and industry moving into the city over the past decade. Now known as one of the ‘Northern Powerhouse Cities’, Liverpool’s economy contributes to the nation as a whole and is the 5th largest metropolitan area in the UK. With an economy that is growing at an impressive rate, the demand for housing is high, making the city an excellent starting point for newcomers to the property investment market.
The city also attracts much in the way of new business and smaller start-up companies, and larger businesses like manufacturing, financial, and pharmaceutical organizations have established operations in Liverpool. AstraZeneca, Land Rover, Santander, and Nestle all have a presence in the city.
With all the growth being experienced in the city it is no surprise that Liverpool’s population is on the rise, which is great news for any new property investor. The wider metropolitan area is home to around 2.5 million people, and the growing economic opportunities are continuing to attract job seekers to the area. Along with the diverse range of employment opportunities, Liverpool boasts several impressive universities, providing ample opportunity for student accommodation
Large law firms, fintech companies, and film studios attract many younger people who are seeking employment. As a demographic this segment of the population prefers to rent homes rather than buy to provide flexibility. New investors can take advantage of this need and easily position their properties to appeal to the younger ‘ready to rent’ market.
Low House Prices
Even with such large areas of investment and growth, Liverpool’s house prices remain relatively low. Some areas have seen a large increase in the past year and supply still lags slightly behind demand which leaves an ideal situation for investors wanting to cash in on the buy to let market.
Despite property price increases in select areas, Liverpool still remains an affordable place to live. The city has been pinpointed as the 3rd best city for property investment and recent studies indicate that property prices will continue to rise and outpace the rest of the country for the next 3 years.
Many new property investors fail in the first year of operation. Generally this is due to overextending or failing to recoup profits due to poor investment choices. Liverpool with its long history and diverse population has a solid rental market. The city appeals strongly to the younger generation with lots of entertainment and things to do.
A bustling nightlife scene, great shopping, art galleries, museum and an attractive waterfront means that investors can expect to receive some of the highest rental yields in the country. The student rental market is the fastest growing sector in Liverpool and new property investors can capitalise on the increasing demand.
Considering all of the economic factors and high investment opportunity combined with strong ongoing demand, Liverpool is an excellent choice for new investors wanting to build their portfolio.
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