It is no secret amongst property Investors that Liverpool is one of the top places for property investments and in recent news, it's been named as one of the top places for strong rental yields. The city, which attracts 58,000 students and 30,000 graduates each year is a hotspot for those looking for lucrative property investments.
In the areas surrounding the universities, the house prices are much less than the national average, attracting Investors from across the country, particularly at our auctions. The average house price in Kensington is £114,555 for a terrace property, in Toxteth, it's £91,305 and with rental yields of 5.22% across the city, it is a "no brainer" for those wanting to turn their hand to property investment.
As a Liverpool estate agent, we have many investor clients who use the services of our residential branches, letting agents, auction house and commercial property consultants to grow and manage their property portfolio. As we work with Right Click Finance, our Mortgage & Insurance partner, our clients are able to secure a buy-to-let mortgage that offers the best deal for their circumstances.
For those looking to get into the property business, Right Click Mortgage Broker Liam O'Brien explains the process:
"A Buy to let mortgage is where you buy the house with a mortgage from a lender that allows you specifically to rent the house out. You receive rental income which you pay tax on. The difference between that and your payment to your mortgage lender, minus any other costs, is your profit. Generally, your deposit would be 25% of the value of the property, which means you borrow 75% of the house value as a Buy to let mortgage.
Typically you would take the mortgage out as an interest-only mortgage, which means you're only paying the interest to the bank and you make more profit per month because your payments are low. However, you can still take a traditional capital and interest mortgage but you’d make less profit per month because your monthly payment to the lender would be higher. It would also be wise for you to speak to an accountant about your tax position and whether you should buy the houses in your personal name or whether you should set up a limited company that you own the shares in."
Where are the Best Places to Buy Investment Properties in Liverpool?
Wavertree
With about a ten-minute drive into the city centre, Wavertree is a popular place for students and young professionals to live without paying the hefty price that comes with living in the center of a thriving cosmopolitan city. Its popularity amongst students and ethnic communities has created a fantastic mix of independent bars and restaurants on Smithdown Road with The Tavern Co and Maggie Fu being some of the most popular haunts for those looking for great food and a buzzing atmosphere.
As one of the best estate agents in Liverpool, if we do say so ourselves, houses for sale in Wavertree are hot property and are never on the market for long. The affordable housing the great links to the city centre makes it a much sought-after place to live.
The majority of properties here are terraces and you can find them on the market for around £136,671 but many property Investors turn them into HMOs or Houses of Multiple Occupancy and rent out the rooms.
City Centre
As a city, Liverpool has over £20 billion of investment opportunities available, pair this with its six million-strong workforce and prosperous tourism, it's a playground ready and waiting for Property Investors. The city's residents whether permanent or on a temporary visit, all need a place to live and work - that's where you come in!
Our Commercial Department, Venmore Commercial, is one of the longest established commercial estate agents in Liverpool and are experts in helping Investors find their next project. Liverpool's incredible nightlife scene stretches across the city, most recently with the Baltic area becoming the new "go-to" place for bars, clubs and pubs. This has resulted in a surge in interest in living spaces closes to the area and the old towering warehouses of past industries are now home to cool apartments just a stone's throw away from the likes of the Baltic Market, Peaky Blinders Bar and Bongo's Bingo.
Other areas that are popular include the Business District, a place where you can find some of the country's most successful companies; legal firms Hill Dickinson, DWF and Weightmans have offices here. There is a great market for rental accommodation with high levels of professionals that work in the area.
Anfield
The £260 million Anfield Project is a regeneration scheme that started in 2012 with the vision of creating 1,000 new homes, expanding Liverpool's football stadium and enhancing the high-street with new shops, temporary markets and tree-lined pavements. Being home to Liverpool Football Club, the area is frequented by thousands of tourists every football season, making it a popular place for short-stay rentals and football fans are quite happy to pay just to be in walking distance of the stadium.
However, with its location being so close to the city centre, it is a popular place for families to live. It's one of the cheapest places in Liverpool for property and for those who can afford it, they choose to either flip it with top-spec furnishings and appliances or rent it out. Our rental department, TVG Lettings, works to successfully manage the properties of Landlords across the region. If you're looking to have someone take care of the tenancy, get in touch with our team and see what they can do to help you.
