When faced with a choice between a City Centre investment or one in the suburbs, many would instinctively invest in the City Centre. With the better yields often being found in outskirts or suburbs, perhaps the choice should be given more consideration.
City centre investments have clear appeal. Often, they are new, shiny buildings in key locations with assurances of quick capital growth. This is appealing, especially for investors looking for a short-term investment. However, those with a long-term investment in mind should look more closely at opportunities outside of the centre. With lower purchase prices, properties in these locations will usually have a higher yield – Capital growth is likely to be lower, but this matters less over a longer term.
More research may be required when purchasing in less central areas – tenants need to be attracted to the location by better value, accessible transport links and good local amenities. Try reading our “How to spot and up and coming property hotspot” post to get more tips on spotting a good area to invest in: https://blog.heatongroup.co.uk/news/how-to-spot-an-up-and-coming-property-hotspot/
As prices rise rapidly in the North West’s City Centres, we expect to see more investors realising the advantages of a property in key and upcoming locations outside of the central zone – Especially with young professionals seeking more reasonable rents away from the rapidly rising costs of the city.
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