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Investment Areas in Scotland


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Hi Folks,

I'm looking to start investing in property, and (like everybody else) am looking for the up-and-coming towns & cities.  Where do you all think the growth areas in Scotland will be over the next few years.  Will there be any major infrastructure projects that will change how the cities & towns relate to each other.  For example the new Borders Railway opened up more towns to commuting in to Edinburgh.  

Of course Edinburgh keeps rocketing up, so it's a no-go as far as I'm concerned (not many £ in my pocket to start with).  But where else is worth a gamble?  Commuter towns serving Edinburgh?  Along the M8 corridor and into Fife?  

Dundee certainly seems to be on the up with the new V&A, gaming programming centres and the University & hospital continually making headlines.  Again, should we be looking at the commuter towns around Dundee?

Stirling/Falkirk are always popular because they can both easily reach Glasgow & Edinburgh, but will they're already pretty highly priced, will they grow much.

Inverness is a bit of a trek to get to, but is a growing city.  Is it worthwhile investing there or has it already peaked?  What would drive the growth there?

I know Aberdeen pretty well (lived & worked there for many years), but it is too closely tied to the oil & gas industry to provide stable sustained growth.  

Ayrshire (particularly close to my heart) doesn't appear to be very ripe for growth, but maybe this multi-million pound Ayrshire Growth Deal will bring investment, jobs, and families to the area.

There doesn't appear to be much to drive the growth in the islands other than tourism.  Personally, I'm not going to buy property there (certainly not in my first efforts as a BtL landlord) as there won't be the number of trades/services available to give prompt support.  Also, it may well deprive locals of housing that is already in short supply.

What do you think?  Where have I missed?  Have I got it all wrong?

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  • 1 month later...

Hi Crawfordy, I have just joined the Property Hub forum..no properties yet but building a strategy as we speak. Just 1 question..why has no one responded to your request for information/advice???? I would have thought a forum like this was designed to assist property investors new and old??

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Aye, me too (on all your points). 

When looking through the past posts on the Scotland file they seem to be a bit sporadic where there isn't the same level of interaction.  Not many posts and very few replies.  I had hoped to stimulate discussion on this front, but not much has happened.  I did also post the same material on the Scottish Property Investment Network (SPIN) facebook page and got a lot of people telling me where to invest or approaching me to invest in their projects.  But not much in the way of talking about large infrastructure developments or why certain areas would be coming to the fore.

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Hi to you both. 

You’re  right in that there’s not a huge Scottish community in here but when you take the population of Scotland in comparison that’s probably on par. 

I try and post where I can to answer Scottish questions but I’m no expert either but listen and read a lot of property articles and podcasts. 

Where to invest? I wish I knew. I don’t remember any new infrastructure projects so that probably means the new money will go to Edinburgh and Glasgow. Plenty new buildings going up there but prices are yields don’t work for me. 

I go for rental income not capital gains as I don’t think Scotland sees much capital gains. I try and buy at below market value and add value to get most of my cash out. 

I invest in Kirkcaldy as it’s local and I self manage. It’s got a train station to Edinburgh but I have to admit that although there’s plenty new housing being built there’s not a huge amount of social facilities. Dunfermline is better but more costly. I make a good return on my money so I’ll keep there for now. 

Good luck and keep in touch. 

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Hi Craig,

I had thought about Kirkcaldy a bit because I stayed there many years ago, 1999.  But I ruled it out as I didn't think that commuter links to Edinburgh were that good.  Maybe my memory is out of date.  Is it much better?  At the moment, I'm going to stick at home (Ayrshire) and do some flips here are that way I can do some of the work.

Cheers,

C.

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The commuter links are fine now. 20 mins on train to Edinburgh gateway and 35 to Edinburgh Waverley. Good motorway to Edinburgh and new bridge is helping car and bus traffic.

It's not a bad call staying close to home as I also do work myself and being 5 minutes from a project is a god send.

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Ha funny! I spent many an enjoyable year in Kirkcaldy and have been looking at this as an area of investment...Only because I know the area really well and understand the areas that apeal and dont! Your right though very much a passive income approach there with minimal capital gain but long term would probably be ok.  

 

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On 7/3/2019 at 5:07 PM, Craig W M said:

Hi to you both. 

You’re  right in that there’s not a huge Scottish community in here but when you take the population of Scotland in comparison that’s probably on par. 

I try and post where I can to answer Scottish questions but I’m no expert either but listen and read a lot of property articles and podcasts. 

Where to invest? I wish I knew. I don’t remember any new infrastructure projects so that probably means the new money will go to Edinburgh and Glasgow. Plenty new buildings going up there but prices are yields don’t work for me. 

I go for rental income not capital gains as I don’t think Scotland sees much capital gains. I try and buy at below market value and add value to get most of my cash out. 

I invest in Kirkcaldy as it’s local and I self manage. It’s got a train station to Edinburgh but I have to admit that although there’s plenty new housing being built there’s not a huge amount of social facilities. Dunfermline is better but more costly. I make a good return on my money so I’ll keep there for now. 

Good luck and keep in touch. 

Hi Craig,

 

What areas of Kirkcaldy are you investing in and what type of properties? Any chance you could share a bit more details on your experience.

I live in Aberdeen and I think the market is still struggling to recover from the downturn a few years ago and property prices are still dropping due to that and significant number of new build homes coming to market at very competitive prices. The rental market around the city centre is AB10, AB24 and AB25 are still strong though the rental income is not as high as it’s used to but returns are still decent. I don’t advise to invest in Aberdeen for capital gains except if you think the oil industry will pick up to 2011-2014 levels of employment...challenging to see from my perspective.

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Hi Kingsley,

I agree with you about Aberdeen.  I lived there for several years and have been back on&off for various contracts.  The city as a whole is too dependent upon the Oil & Gas.  At least with the other cities, Dundee, Inverness, Edinburgh, Glasgow, etcetera they aren't tied directly to one specific industry.  This means that when one industry takes a downturn (as they all do) the shock isn't felt as hard as Aberdeen did when the O&G went downhill.  Having had experience of Aberdeen, I look at places with a diverse economy.

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I typically go with 2 or 3 bed mid terrace houses. Ex council are well built but watch out for non standard construction. I’ve also got a maisonette. I stay clear of flats as Kirkcaldy seems to have a huge amount up for rent. The houses I have are always snapped up as there aren’t many for rent and I also do them to a good standard. 

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  • 2 weeks later...

Hi, thought I'd chime in too. I'm looking at Glasgow. BTL no refurb.

I know south side and west end really well.  East end looks very promising but ive never really ventured out there apart from the forge.

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Hi Usman,

Both the Southside & West End are both really solid bets as I think rentable properties there will be in demand for many years.  I think there is more growth potential in the East End, but I too don't know it well enough (yet) to be confident in purchasing.

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On 7/15/2019 at 9:14 PM, crawfordy said:

Hi Usman,

Both the Southside & West End are both really solid bets as I think rentable properties there will be in demand for many years.  I think there is more growth potential in the East End, but I too don't know it well enough (yet) to be confident in purchasing.

I haven't found a good deal in West End yet. Its always in demand rent-wise but the property prices are quite ridiculous tbh. Southside is a bit better. There are good pockets in East End but it area in general has a bad rep. Maybe in the past this was true but recently things have improved drastically. 

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  • 1 month later...

For a general area, I mark out the zone on rightmove (where you can customise the search map) then select rent (including let agreed).  If you end up identifying a specifc property that you are interested in purchasing, then contact a few of the local letting agents and ask them what they think they can get.  Don't just rely upon one letting agent.

I don't have any specific recommendations for letting agents in Kirkcaldy.

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  • 1 month later...

I'm watching this link with interest...

I currently have a couple of properties in East Lothian but am looking to invest further afield where the properties cost less! I've been looking at Dundee where costs seem to be pretty fair and the returns look pretty good - just got to hone in on the perfect area/location! If anyone has any advice, please let me know...

I use the letting web website for researching rents in specific areas: https://www.lettingweb.com Its also pretty good to check out how quickly properties let and give me an idea of the quality of the properties being let. 

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18 hours ago, kevin rettie said:

I'm watching this link with interest...

I currently have a couple of properties in East Lothian but am looking to invest further afield where the properties cost less! I've been looking at Dundee where costs seem to be pretty fair and the returns look pretty good - just got to hone in on the perfect area/location! If anyone has any advice, please let me know...

I use the letting web website for researching rents in specific areas: https://www.lettingweb.com Its also pretty good to check out how quickly properties let and give me an idea of the quality of the properties being let. 

Only thing I can add to Dundee is that i know the student market is really good. The university has come along significantly. So logically you could expect more student lets. 

Have you travelled to look at properties? Its a bit of a trek from Glasgow. Do you have someone who can assess a property for you in Dundee?

 

 

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Hi Usman

I have not travelled up to Dundee yet but am planning a trip soon. I have made contact with a couple of agents and will meet with them too when I go up. I have some areas in mind that I want to check out and understand the market in these areas. I have never let to students before either so I need to understand the ins and outs of this too... lots of research still to be done!

 

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I've been wondering about Dundee as well. It seems to be the focal point for the games & coding sector along with a well established bio research sector.  I haven't done any significant research on it, but it's looking like it's got more opportunity for growth than Edinburgh which already has high prices.

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  • 1 month later...

I have invested in Dundee a few times over the past couple of years and event though I keep my eyes peeled on what is happening elsewhere in Scotland, I have reverted to Dundee as preferred area of choice; diverse economy (yes gaming sector, but also public health/hospitals, some fin. services, tourism, University employment, design/arts, even Port regeneration...), great transport, lower cost as compared with Edin/Glas/Aberdeen, and good yields. Massive (relative) youth/student population makes it a no brainer for the student market, but also as mentioned diverse and skilled workforce makes professional market achievable also.

Hope this helps somebody!

Cheers

Paul

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  • 2 months later...

Hi all,

 

It's good to see a bit of chatter about Scotland. I'm quite new to this, bought my first flat in Renfrew end of 2018 (cheap, little growth potential but good return), it let fairly quickly. I'm just in the process of buying a second property in Dennistoun (East Glasgow) and moving to a new agent. Will be interesting to see how quickly this one lets. Would be keen to hear others' experiences in these areas with regard to agents etc

Caroline

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  • 4 months later...

Hi guys. New to the forum. I’m surprised there isn’t much chat from scottish property investors here.  This could be a good place to give advice/ ask questions with like minded folk and build a scottish property community. 
 

a little about me, currently have 5 buy to lets and my own home across the central belt, 5 in Edinburgh and one in Glasgow. I am looking at investing again but Edinburgh (my primary interest is , as I’m sure you’ve seen, ridiculous nowadays). I am now looking further afield and wanted to know if anyone had any experience in Falkirk or Kirkcaldy. It seems you can get decent property for good price and high enough yields. 
 

any ideas would be welcome

 

cheers
 

 

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Guys great so see more chat about Scotland. This Website/forums would benefit from a separate "scotland" link which i might purpose to property hub as Scotland / england are clearly different in many aspects of property and each element is dealt with. Even more evident now that the virus has came about and rules in england (opening up the property market 6 weeks early) vs scotland is totally different. 

Would anyone be interested in a general whatsapp property group maybe called "scotland property hub" were we can bounce ideas, mentor and ask any questions about the markets in scotland etc?

Happy to start it if there is some interest? 

Cheers,

Eamon

Home Equity Gains Group 

Property Investor & Developer

http://www.hegg.info ;)

https://www.instagram.com/hegg_ltd/?hl=en B)

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