The Herald - The Herald Magazine
THE VOICE OF PROPERTY
PROPERTY consultancy Galbraith reports Scotland’s buy-to-let sector has taken a turn for the better this quarter as investors seek to capitalise on good rental returns and the rising property market. As a result, landlords are now returning to the residential letting sector following several years without market growth.
Galbraith lettings adviser, Marsaili Macleod, comments: “In recent years investors have been more interested in the holiday lets sector as this was often considered a more profitable option than residential lets. Now we are talking to more landlords who are interested in the core residential lets market for two reasons. Firstly, strong demand from tenants and lack of supply means rental prices are rising and landlords can pick and choose from waiting tenants. Secondly, property prices have risen considerably in Scotland over the past two years and many of our clients are planning ahead and investing in a buy-to-let property which will achieve good capital growth and fulfil their financial objectives while offering security.”
She adds: “These factors, compared with the hassle of managing a holiday let and having to achieve high rates of occupancy all year-round, are enticing landlords back into residential lets as an investment.”
Galbraith highlights a typical twobedroomed apartment in Inverness, which might sell for £165,000. If purchased with a 25% deposit (£41,250) the achievable rent for the property would typically be set between £750 and £775 ppm. Lenders are currently offering capital and interest mortgages, or interest-only mortgages, for buy-to-let properties with monthly repayments lower than the likely monthly rental fee. This offers the potential to achieve a return each month, even taking into account the LBTT 4% charge on second homes.
DARGAVEL Village is a multi-million pound regeneration development bordering Bishopton – comprising mainly semidetached and detached family-orientated house styles from a variety of house builders. However, flat seekers can be appeased by the latest phase from Stewart Milne Homes, which includes a selection of architectdesigned executive apartments. Prices start from £223,000.