If you're looking for investment opportunities, a Buy to Let in Glasgow could be an option for you to consider...
In this insight, we consider the city, how it's growing and talk to the experts about their opinions on buying property to let in Glasgow.
The city has an excellent public transportation network. Glasgow is becoming a cultural hub with a thriving arts scene. This makes it an attractive place to live for many people. These factors make Buy to Let in Glasgow an appealing investment.
Finding a tenant is not a worry in Glasgow, rents are increasing and investment opportunity is better than ever.
In this insight, I've teamed up with Alan Ferguson, an estate agent with Keller Williams, to provide all the information you need to know about Glasgow Buy to Let.
I've included the additional considerations for Buying to Let in Scotland, how you can benefit from Scottish Home reports, and the value of seeking Mortgage advice.
Glasgow has a strong property market and steady economic growth. This provides opportunities for Buy to Let. Glasgow's diverse range of properties, from traditional tenements to modern new builds offers a chance for investors at any stage to begin their Buy to Let journey.
Yes. Glasgow is an excellent area for buy-to-let investors. It has a strong rental market due to its large population and steady economic growth. The city has a wide range of properties available. Different investors can find properties that meet their investment criteria in Glasgow. In the last decade, rental values have dramatically increased. The increase has provided investors with huge returns. Additionally, Glasgow has a large student population. Investing in student accommodation can be a good option for buy-to-let investors.
Some areas that have been traditionally popular for property investment include:
The West End - Known for its Victorian architecture and proximity to the University of Glasgow. The west end is ideal for student buy to let opportunity.
The South Side (Shawlands/Battlefield/Newlands) and the East End (Dennistoun) - These areas are known for its range of more affordable properties. All areas West End, South Side or East End-adjacent make fine areas to buy-to-let. This, as well as the city centre, I would say is a great geographic spread of where rental demand is highest.
In terms of up-and-coming areas, it's worth looking at areas that are currently undergoing regeneration or redevelopment. These areas include:
These areas may offer good investment opportunities as they become more increasingly desirable places to live. It's also worth keeping an eye on areas with upcoming infrastructure improvements, such as new transport links, as these can have a positive impact on property values.
The type of property that is best to buy to rent in Glasgow will depend on the specific rental market in the area. However, based on my knowledge of Glasgow, some popular types of properties for rental include:
Glasgow has a large student population, and there is typically strong demand for rental properties near the University of Glasgow and Glasgow Caledonian University.
Glasgow has a large population, and there is typically strong demand for rental properties that can accommodate families, such as three- and four-bedroom houses.
Glasgow has a diverse range of properties available, and flats and apartments are popular options for renters.
Properties that are in good condition are more likely to be in demand and generate higher rental income. Additionally, properties that are conveniently located near public transportation, shops, and amenities are also likely to be in high demand.
The Buy to Let Mortgages market in Glasgow does differ from areas in other major UK cities. Although the products work in the same manner, with similar rates, there are a few other factors that you need to be aware of when deciding if the buy to let venture is worth it.
In Scotland, if you are buying a second property, you need to pay an additional dwelling supplement tax. This additional tax for second homes is 6%, where a 3% surcharge on stamp duty is applied in England.
Each home that is placed on the open market has a home report. The report states what the value of the property is. It is completed by a surveyor and if it is dated within 3 months of the purchase it can replace a Mortgage valuation. This can speed up the time to offer, as you do not need to wait for a valuer to assess the property.
The home report gives you an idea of anything to be fixed in the property. It contains any defects reported. Such as issues with timber and damp. Anything that would be of interest to the lender will be included in the report.
Using a Scottish home report can save you money that you would have paid for a survey.
If an Estate Agent has a number of enquires on a home they can set a closing date. By the closing date, each buyer must have a best and final offer in.
It’s important to have a good solicitor in place. Your solicitor will be required to communicate your offer in writing to the seller. Written bids from the buyer alone are not sufficient. The seller will then be made aware of the bids. They will then choose the best offer.
When buying a property in Glasgow, there are several key things that investors should be aware of and consider to ensure that their investment is a sound one. Some of these include:
This includes understanding the local housing market, researching comparable properties, and checking for any potential issues with the property or the surrounding area.
Scotland’s laws and regulations that can affect your ability to rent a property. It's important to be aware of these and how they may affect your investment. In Scotland, we are faced with stricter licensing, higher taxes and increased regulation. Be aware of this.
Buying a property is just the first step, there are ongoing costs associated with owning a property such as maintenance, insurance, and repairs. These costs can add up, and it's important to factor them into your investment plan.
It's important to understand who your target tenant is, what they're looking for, and how to market the property to them. A good letting agent will assist with this vetting to find your ideal tenant.
Even in the best of markets, a property may experience vacancy, it's important to have a plan in place for managing this and ensuring that your income stream is not interrupted.
Seeking professional advice: If you're not an experienced property investor, it's a good idea to seek the advice of letting agent, estate agent, or Mortgage adviser to help guide you through the process and ensure that you make a sound investment.
It's important to keep in mind that buying a property is a long-term investment. The value of a property can fluctuate over time. It's always recommended to conduct thorough research and due diligence. Seek professional advice, and have a realistic understanding of your own financial situation before making any decision.
It's always a good idea to seek advice when reviewing the Buy to Let mortgage market. Buy to Lets are mainly used for investment purposes. It's important to find the best mortgage for you, which is competitively priced. If you choose to speak with an adviser, they will be able to take the time to understand your needs and provide a Mortgage plan that will maximise the potential for earnings on your Buy to Let.
If you are looking at Buy to Let in Glasgow, it's worth having an adviser who has experience in navigating the area and market. This is especially true if you are new to Buy to Let in Scotland.
Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.
Our website offers information about financial products such as investing, savings, equity release, mortgages, and insurance. None of the information on Sunny Avenue constitutes personal advice. Sunny Avenue does not offer any of these services directly and we only act as a directory service to connect you to the experts. If you require further information to proceed you will need to request advice, for example from the financial advisers listed. If you decide to invest, read the important investment notes provided first, decide how to proceed on your own basis, and remember that investments can go up and down in value, so you could get back less than you put in.
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