Why invest in Scotland?
There are plenty of very sound financial reasons for investing in Scottish property. Here we outline just a few of the most important ones:
Never been a price crash
Relative to other parts of the UK, Scotland has never experienced a dramatic drop in property prices and provides a good opportunity for those wishing to buy up lucrative properties boosted by such low entrance prices.
Low prices
The average house price in Scotland is £138,941 (approximately 30% less than the UK average). That's why many buyers are now purchasing carefully selected below market value properties throughout Scotland.
High yields
Low prices mean high yields. Historicaly Scotland's yields have outstripped the rest of the UK. A yield is the purchase price calculated against the annual rent (eg, if the purchases price is £100K and the rent is £700pcm (£8400 per annum), £8400 divided by £100,000 = 8.4% – this is the gross yield.
Yields do not take into consideration property expenses or allow for void(empty periods) – this is known as net yield. Banks calculate yields based on the gross.
Massive rental demand
Rental demand in Scotland is rising. This has been driven by a combination of factors – notably a greater number of single-person households (through divorce and younger people delaying marriage or setting up home together), an increase in the student population as well as a large number of new migrants coming into the market.
High capital gains potential
Capital gain is the profit gained when selling the property. Scotland as a whole is likely to increace in value due to the current low values compared to the rest of the UK. AIMS sources properties in key locations, studying town planning proposals and other social aspects to pin-point hotspots or up and coming areas that are the next big thing. This is where the biggest short to medium term gains are available.
Local knowledge
Scotland, like the whole of the UK, is made up of many micro markets. Don't be misled by generalisation in the property market. This is particularly important and goes from street to street and in some circumstances house to house.
Other advantages
With AIM, there is no 'chain' – so you don't have to worry about everything falling through at the last minute.
All of our properties are fixed price and below market value, so you can grab a bargain without entering into a bidding war.
Our properties are tenanted, with rent paid from day one, so you can have peace of mind that your investment is working right from the start.
All Scottish property is freehold as opposed to leasehold, meaning you actually own your property.