Leeds is a great city to invest in, with a huge population, thriving industry and big plans for the future. If you are new to investing in Leeds, this beginner’s guide should give you everything you need to start out in Leeds property investment.
Think About Your Ideal Tenant
Leeds has a huge population, and it is worth narrowing down your idea of who your ideal tenant is so you can appeal to them directly. Leeds is famous for its impressive financial sector, and its affluent employees can be ideal tenants for investors. With over 124,000 people employed in the financial and business services industry, this is a great market for potential landlords. Leeds also has a huge student population of over 70,000 students and nine higher education institutions. This means that Leeds student property investment is another viable investment strategy you could consider. Think about what your ideal tenants will be willing to pay and what they are looking for from a rental property.
Look at Rental Yields
Rental yields are essential to any property investment. It is a percentage calculation that tells you how much of the total price paid you will receive every year as a result of rental income. It is always wise to look for a property with the highest yield possible as it means your property will pay for itself sooner. In Leeds, the average rental yield is 4.29%. However, certain postcodes in Leeds have amazing rental yields, and the LS6 postcode topped the list for rental returns in 2016, with an almost 11% yield. This popular postcode boasts a combination of affordable properties and excellent rental income. If you are looking for impressive Leeds rental yields, certain property investment companies like RW Invest have Leeds properties with high guaranteed yields for a set period of time.
Find the Right Price
Leeds property prices are currently surprisingly affordable, with the average property price for a flat at £145,649 and the overall average property price paid of £205,499. House prices are on the rise in Leeds and future regeneration and development plans are set to boost these further. This means that is an ideal time to invest in Leeds property. Over the last twelve months house prices in Leeds have gained £3,745 according to Zoopla, which can give property beginners an indication of the growth they can expect. It is worth looking at a wide range of Leeds properties before deciding on the type of investment property you want. If you have a limited budget, it may be worth considering off-plan property in Leeds or student accommodation.
Consider Future Plans
It is always worth trying to look ahead when it comes to property investment and there are big plans in store for Leeds over the coming decade. The new HS2 railway will make Leeds far more connected to the rest of the country and the huge plans for the South Bank area will be revolutionary for the region. Think about what amenities your ideal tenants will want to live by, it might be public transport, bars and restaurants or by big companies where they might work. It is wise to look at purchasing your first property in area that is on the rise, and will grow in value in the future.