Falkirk property investors – do you have a game plan?

Last weekend I was on holiday with family and friends.  We were staying in Port Appin on the West coast of Scotland.  It’s the sort of place you need to provide your own entertainment and we played many, many board and card games!  One of the board games we played was Monopoly (the original one, not the fancy new ones you get with card readers) and I had actually forgotten how much fun it was and secretly how competitive I am. Yes it’s just a game but I had a game plan (buy everything I land on except the Stations and the Utilities!). 

Having a game plan is key when investing your money in a Falkirk property.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the Gartcows area, the High Station area and the Lionhorn area which are perceived as being more desirable, where you may be able to achieve an annual yield of around 4-6%.

If you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-8%. This level of risk can be typically taken with properties in New Carron Village and the Ewing Drive area, I am happy to discuss and outline specific streets in these areas.

If you are after annual yields of 8% and over, you could take more of a risk with properties in other part of Falkirk, for example certain streets in Camelon and Tamforhill, which are more likely to attract tenants that are relying solely or mainly on benefits.  Many landlords shy away from these sort of properties because they ‘can’t be bothered with the hassle’.  However, they are worth considering.  Sure you can get bad tenants that are on benefits but you can get bad tenants that are not on benefits ..... and, as I have mentioned in a previous blog, 46% of tenants are on housing benefit so there are probably far more people on benefits that you may think.  Do not get me wrong, there are specific risks with tenants who rely solely or mainly on benefits – mainly around getting paid! – but I have proven strategies to reduce these risks that I would be happy to share with you.

As always, if you would like to send any deals you have seen online over to me or you would like to pop in and have a chat, then you can either email me news@thekeyplace.co.uk or call me on 01324 469840. Our address is 6 Vicar Street, Falkirk (just down from the High Street). The kettle is always on and we will even pull out the posh biscuits!

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