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A Guide to Property Bonds in the UK. How to Invest?

Editorial Staff

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london property bonds
Image: Unsplash.com

How to invest in property bonds in a UK hot spot? Where’s the best place in the UK to invest in property bonds? These are the most common questions asked by the investors interested in the property in London.

Overall the general perception about London is that it’s one of the economic capitals of the world, not just the UK. We read a lot of stories in the press consistently telling foreign investors to be the first to inject tens of billions of pounds into the London property market.

This is one of the biggest reasons that the property bonds in London represent a potential slice of an enormous financial pie. Not so if you scratch below the surface. As a consultancy firm, we are keen to point out the best property bond opportunities with the strongest yield. A much better than the capital than you may think.

The properties with the strongest yields are typically found in the north. When an investor asks our consultants how to invest in property bonds to diversify their portfolio and what are the best yielding options are in the UK. The answer over the previous few years has typically been the same. The focus on the northwest Liverpool, Manchester, Preston and similar towns and cities represented the best place to invest in property bonds.

A theory that has recently been backed by research published by Totally money. Totally money has found that ten of the highest yielding postcodes include none from London.

Totally money’s investigation analyzed more than 500,000 properties listed for sale and to rent, and then overlaying average rents and asking prices and so much more. They found that landlords renting out a property in northern postcode was receiving an astonishing yield of 12.6% a year. In facts when extended the list of the top 25 postcodes, London still isn’t involved. While properties across Scotland the Midlands and the Northeast entering the mix.

The reasons are various but one of the most popular is that these cities have a high turnover of students. Prices in Liverpool especially are boosted thanks to the area’s student population of 70,000. While other areas that we’ve mentioned have a typically high influx of students looking for affordable accommodation.

Something which isn’t as achievable in London, especially if you don’t have the time to fully investigate the landscape and wisely invest your capital.

Bonds also represent an opportunity for investors to potentially grow their savings through the property without the hassle of becoming a landlord, providing maintenance, dealing with problem tenants, and other issues that may arise.

If you want to invest in property in the UK then you should investigate the opportunities properly. The hype created in the advertisement is not always true. The best thing you can do in this regard is hiring a local property consultant or property agent. There are many investment companies which can help you make a better property investment decision.

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