It is win win for Falkirk landlords – capital growth AND rental yields are higher than in Polmont, Larbert and Linlithgow!

I am speaking to more and more Falkirk landlords as they read The Falkirk Property Blog that shows that the Falkirk rental market is doing reasonably well, with rents and property values rising. 

When I was having a chat with one of these landlords over a cup of tea in Finnegans Cafe the other day, he asked me two completely unrelated questions that got me thinking.  The questions were, how much faster are property prices in surrounding towns rising than Falkirk ones (she has properties in Falkirk, Larbert and Linlithgow and is thinking about buying another one) and how much he should be paying per square foot?

Interestingly, we both thought that obviously Larbert, Polmont and Linlithgow property prices would be rising faster than Falkirk property prices but, going by my mantra of ‘never assume nuthing’, I did my research and was astounded by what I found.

Over the last twenty years, property values in Falkirk have risen by 243.12%, compared to Larbert’s 238.23%, Polmont’s 242.72% and 240.95% in Linlithgow.

This is an astounding result as it turns the historical view of the capital growth vs income see saw on its head.  The capital growth vs income see saw says that the higher the capital growth the lower the rental yield and vice versa. 

However, the property values research I did means that not only has capital growth been greater in Falkirk than in Larbert, Polmont and Linlithgow, but your investment money also goes further in Falkirk as properties are cheaper meaning there will be higher a rental yield – in Falkirk you can get easily 6-8% whereas in Larbert, Polmont and Linlithgow you are lucky if you get 5-6% per year.

So looks like ‘you can have your cake and eat it’!

What about the ‘how much he should be paying per square foot’ question I hear you say?  Well, that’s a topic for a future blog post .... watch this space.

Whether you are a landlord, a ‘Homes Under the Hammer’ addict or just a homeowner who is interested in what is happening to the local property market, then please visit The Falkirk Property Blog (www.thefalkirkpropertyblog.co.uk), contact me for a chat (phone on 01324 469840), come and see me in my office (6 Vicar Street, Falkirk) or email me (robert@thekeyplace.co.uk).

www.thekeyplace.co.uk

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