Scotland`s east coast offering investment opportunities
Released on = June 28, 2007, 10:09 am
Press Release Author = Jimwatson
Industry = Real Estate
Press Release Summary = Many of those looking to invest in property are already looking to Scotland, with its many lifestyle advantages such as the comparatively small size of its cities, at least against London, plus the proximity of outstanding countryside. These cities offer an improving cultural scene, more city living and easy escape to the wilds. Glasgow, for example, lies less than an hours\' drive from the Loch Lomond and Trossachs National Park.
Press Release Body = Many of those looking to invest in property are already looking to Scotland, with its many lifestyle advantages such as the comparatively small size of its cities, at least against London, plus the proximity of outstanding countryside. These cities offer an improving cultural scene, more city living and easy escape to the wilds. Glasgow, for example, lies less than an hours\' drive from the Loch Lomond and Trossachs National Park.
But the advantages are not just about the proximity of lochs and mountains. Property agency Rettie recently stated that Scottish cities were an \"obvious investment choice for those looking to invest and save\", offering an \"attractive investment prospect for a wide range of buyers.\"
Rettie\'s director of land and homes Mathew Benson and director of residential sales Tony Perriam explained that \"Scotland has historically had a relatively high price differential with the south east and many other parts of the UK.\" This relative value differential was in turn, they stated, driving price movements upwards as investors picked up on the opportunities presented, they stated.
The three cities they cited as the main examples of this were the east coast cities of Edinburgh, Aberdeen and Dundee. All three had seen a \"surge\" in residential property prices according to last month\'s Lloyd\'s TSB Scotland House Price Monitor. Of these, Aberdeen has a reputation as a boom town with a thriving oil industry and the fastest rising house prices in Scotland while Edinburgh enjoys the status and prestige of a capital city.
Dundee, however, is a different case, according to Kevin Mitchell, chairman of property specialists Edinburgh Residential. He states Dundee is \"simply now catching up with property prices\" after many lean years, since there is no notable expansion in population or employment prospects to drive the market in other ways.
There are areas of popularity offering the buy-to-let market opportunities that are common to all three cities, with all three scoring 62 per cent in the recent poll by AccommodationForStudents.com to find the best town or city to study in, just behind the top destination of Aberystwyth. Nonetheless, the differences are there, with each one offering its own opportunities.
In Aberdeen, first-time-buyers are being pushed out of the city more each year due to the oil industry, Mr Mitchell stated, saying: \"Aberdeen is always a terribly, terribly strong market. If the oil industry is making money house prices go up.\" This may suggest that where a buy-to-let investor can get property in the city rather than surrounding districts, those keen to live in Aberdeen may take up the lifestyle-friendly option of renting when this is made available rather than looking to buy further out and have a longer journey to work.
In Edinburgh, Mr Mitchell notes, there is a different scenario, in which older properties are much more popular than new build with locals, meaning the most popular investments will be buildings with a bit of age but potential for conversion.
Overall, Messrs Benson and Perriam at Rettie are keen to emphasise, Scotland has highly favourable yields for property investors. As they put it: \"Even with rental incomes offering yields at below five per cent and sometimes below three per cent gross, this is still not unattractive compared with the yield on most equities or indeed many bonds.\"
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