JUNE 04, 2019 | BY A & S Property
Top BTL locations based on speed at which you can recoup your investment
New research looking at the best buy-to-let markets to recoup your investment on both property price and stamp duty costs based solely on annual rental return has revealed that Scotland currently ranks as the number one country in the UK.
The research, commissioned by Benham and Reeves, found that Scotland is the quickest country in the UK recoup your investment on both property price and stamp duty costs based solely on annual rental return, with the annual rent repaying stamp duty and average property price in 17.7 years.
Northern Ireland was the second quickest at 18.9 years, followed by England at 25 years and finally Wales at 26.4 years.
With Scotland and Northern Ireland home to the quickest return on a top level, it is no surprise that they account for the top three quickest areas in the UK, with Glasgow the quickest of them all at 13.3 years followed by Belfast at 15.8 years and Aberdeen at 17.8 years.
Nottingham was the quickest area in England to see rental income recoup the cost of buying a property at 18.4 years, followed by Newcastle at 18.5 years.
In London, Tower Hamlets is the best buy-to-let investment for the fastest return, with annual rental income taking 21.4 years to return the average house price and stamp duty costs of £452,821.
Barking and Dagenham (22 years), Newham (23 years), Greenwich (23.5 years) and Enfield (25.7 years were also amongst some of the best options in the capital.
Marc von Grundherr, director of Benham and Reeves, said: “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.
“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.”
Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!