A couple of local landlords and I were having a
discussion about the property market in Falkirk the other day, when the subject
of risk against returns arose.
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
areas of Falkirk which are perceived as being more desirable, such as the
Gartcows area, the High Station area and the Lionhorn area, 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 6-7%. This level of risk can be
typically taken with New Carron Village and the Ewing Drive area. If you are
after annual yields of 8% and over, you could take more of a risk with houses
in the poorer areas of town which may attract tenants of a low quality.
If you would
like to explore how we can help you with your property investments, or should
you require any advice about investing in the Falkirk property market, wish to
enquire about our Investment Analysis Reports, Property Sourcing, Residential
Lettings or Property Management services, please do not hesitate to contact us
on 01324 469840 or at on news@thekeyplace.co.uk.
Alternatively
please feel free to pop in and see us at our offices at 6 Vicar Street, Falkirk
for a chat, the coffee is always on.
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