Some industry experts are anticipating the outpour of “silver landlords” within this year.
So before I delve more into this topic, “silver landlords” are pensioners hoping to buy an investment property with their retirement money or life savings. The industry is bracing for their entry into property investment, because recent changes in pension laws gave these retirees more freedom on how they can spend or invest their savings.
Experts from Savills are claiming that these “silver landlords” would opt to invest in Buy-To-Let properties because of their dual benefits.
First, buy-to-let investing can supply them with a stable income whenever there is a tenant staying in the property. Second, they can also choose to sell the property in case house prices double in the near future.
Aside from that, record low rates of Buy-To-Let mortgages are helping more people (not only senior citizens) buy investment property through loans – and when they enter the market this way, they get additional tax incentives in the process!
With the bonuses I’m enumerating, I know I’m already sounding like the people in “As Seen On Tv”! Believe me, I’m not trying to sound like them.
It’s just that the deal is too sweet for “silver landlords” nowadays that the only remaining question for them is where in the UK should they invest in Buy To Let properties?
Choosing where to buy is not only important for every investment, since location could mean zero or double pay out for your investment in the future.
For “silver landlords” looking for a place with big potential for high rental yields, then the best bet is to find a place in Greenwich.
However, if the London property prices are just too much for your budget, then you can also consider buying a house in either Peterborough or Newcastle. These locations placed 2nd and 3rd on the list of places which produced high Buy To Let income yield for thepast 12 months.
Top 10 places for Buy To Let income yield:
- Greenwich, London
- City of Peterborough, East Midlands
- Newcastle upon Tyne, North East
- Leeds, Yorkshire and The Humber
- Salford, North West
- Reading, South East
- Birmingham, West Midlands
- Luton, East of England
- City of Plymouth, South West
- Medway, South East
On the other hand, investors looking for the best return on capital growth. It’s better to steer away from the Capital and probably go up North!
Savills found that houses in York have the highest return on capital growth over the past 12 months compared to other cities in the UK.
Top 10 locations for Capital Growth
- York, Yorkshire and The Humber
- Guildford, South East
- Woking, South East
- Cambridge, East of England
- St Albans, East of England
- Bath and North East Somerset, South West
- Norwich, East of England
- Kensington and Chelsea, London
- Cardiff, Wales
- Solihull, West Midlands
The ‘right’ place will ultimately depend on your investing strategy. Hence, it’s very important to have very clear priorities – whether you want to focus on high rental yields or whether you want to be in the best position to profit from capital gains.