Buy to Let in Midlothian 1st Dec 2015

Location is key for buy to let investors, and landlords tend to purchase in areas they are knowledgeable of in terms of property prices, monthly rents and the local amenities that attract tenants to an area.

However it may well be worth considering unfamiliar territory, especially if you live in one of Scotland’s main cities. Towns on the outskirts frequently enjoy lower property prices, and therefore higher rental yields.

Before investing you need to think about what you want from your investment. Are you looking for long term capital growth, or are you looking for a good monthly rental yield? You also need to think about who you are planning on renting to. If you are thinking about students for example, you would want to choose in an area close to colleges and universities.

This month’s newsletter is looking at buy to let investment properties in Midlothian.

Economically, Midlothian is flourishing, with strong representations in the science and service sectors, alongside other traditional strengths such as construction. Midlothian is ideally placed for road access to all major cities. Public transport links supply both Edinburgh and Glasgow, and beyond. It is full of numerous towns and villages where renters want to live, and many bargains are to be had.

Investment Opportunity 1

Our long, long experience of the Penicuik property market means that we can be invaluable to buyers, sellers and renters in the Peniciuik property market.

This property is a 3 bedroom semi-detached house at 5 Meggat Place in Ladywood, Penicuik. It has been on the market for quite a while but it is worth having a look at. The house has been done up to a high specification throughout and it truly is in lettable condition.

It’s on the market with Alan McDougall at a fixed price of £118,500 and it would rent for £800 pcm, therefore you could be looking at an annual gross yield of 8.1%.

Although the property has been on the market for quite a while now, as the current owners bought it for £117,500 in 2011, I am not sure there will be that much negotiation on price ...... I suspect they need around £118,000 and will stay in the property until they get this price!

So how does our long, long experience of the Penicuik property market help with this opportunity? Well, it de-risks it! We used to rent out this property before the current owners bought the house and did it up so we know it is a good buy to let property – we walk the walk as well as talking the talk!

Investment Opportunity 2

New properties can be attractive to certain buy to let investors, particularly new investors, and so our second buy to let opportunity is a new build property.

Miller Homes are building flats at Dalmore Mill which is between Penicuik and Auchendinny. Dalmore Mill was the home to Midlothian’s last remaining paper mill and stands in a hollow, on Glencorse Burn, near the North Esk River. The properties are bright spacious two bedroomed apartments with an open plan L shaped living and kitchen area with French doors. Being new builds, they will come with a fully fitted kitchen, a fancy bathroom and all mod cons. These properties also come with an allocated parking space.

The 2 bed flats are on the market for prices starting at £135,000, let’s assume you buy one at £135,000. Rents of new properties are harder to assess as they, or properties similar to them, have never been rented before but you will likely get £625 - £650/month. This gives you a yield of 5.6% - 5.8%. This yield level is lower than normal for 2 bed flats in Penicuik due to the new build nature of the properties.

For other buy to let investment opportunities, follow the Penicuik Property Blog:

The buy to let market certainly seems set for continued growth. It poses a tempting prospect for anyone new to property investment, and existing landlords are already reaping the rewards, and adding to their portfolios. The Key Place is keen to work with people considering buy to let investing. We can help can source high yield properties in the areas in which you want to buy, find the best mortgage, complete the acquisition and fully manage your investment. Contact us now for further information.