Investment Property News

• Between March and May, the number of homes sold across Edinburgh, the Lothian’s and Fife rose by 43% annually. The number of homes coming onto the market rose by 11% over the same period.
• House prices rose in most areas of East Central Scotland, with the average house price in Edinburgh up 2.9% annually at £212,431.
• Almost 60% of homes sold in the Capital achieved or exceeded their valuation – the highest level since Home Reports were introduced.
• Selling times have quickened, with the median selling time across East Central Scotland falling from 12 weeks to just under seven weeks.
• The majority of sellers are now choosing to market their homes at Offers Over rather than at Fixed Price or Offers Around.

Buy to let interest only mortgage. 75 % loan to value, fixed for 2 years at 3.99 % then variable rate of 5.35 % thereafter with 5.2 % APR overall cost for comparison. An early repayment charge applies during the fixed rate period. There are no booking or arrangement fees with this product. Other fees may apply. As an example a £150,000 purchase with a £112,500 loan would cost £374.06 per month. For further details contact ourselves or Paul Demarco at ESPC Mortgages.

Are you interested in investing in property but dont’ know where to start? Then come along to an informal information evening in Glasgow on the 27th February. The event is being run by Letfirstand we will be in attendance to answer questions you may have. Should be a great evening so do come along. I am certainly looking forward to discussing property investment with other investors and would be investors. Full details here.

The Edinburgh Solicitors Property Centre recently asked me to write an overview for the West End area of Edinburgh. Here is the ESPC article.

A question we are asked continually and whilst the answer will always vary from client to client dependent upon specific goals and the amount they wish to borrow the example below illustrates what can realistically be achieved.

• Investment of £100,000
  Borrow £150,000 (60% Loan to Value)
  Purchase a central 1 bedroom flat for £90,000 and a central 2 bedroom flat for £160,000
  Combined gross annual rental income of £14,700 per annum (£500 and £725 pcm)
  Gross Yield of 5.9% on £250,000 (£100,000 investment and £150,000 loan)Combined net, after costs, rental income £11,000
  Annual loan repayments circa £6,000
  Net Profit £5,000 per annum on £100,000
  Net Yield 5% on £100,000 Investment

  With £100,000 invested in good quality buy to let property a net yield of 5% is realistic. This takes no account of capital appreciation which would see the yield improve even further.