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charles d

Property areas in Scotland

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Hi Hubsters,

 

 

I'm visiting Edinburgh on the Weekend 31st March for a Wedding with my wife and thought it would be a great opportunity to look at properties in the region as it is one of the possible regions I may invest in.

Could anyone give me guidance on the following area's as I would like to do a little research beforehand.

 

Edinburgh

Glasgow

Dundee

Dunfermline

Aberdeen

 

We have a car and would like to view the best places to potentially invest in whether it is 2 x Bedroom flats or 3 Bedroom Houses. 

Happy to Meet up with people who have good knowledge of the area also.

 

Many Thanks

 

Charles

 

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Hi Charles,

 

I live in Edinburgh and have 3 properties here (well will have hopefully when latest one completes on 31st) and one through West and have a very good knowledge of my local area (Dalry). Interesting to see you thinking of Scotland as it doesn't get much coverage on the podcast but obviously has it's pros and cons like anywhere. I find Edinburgh a great investment opportunity, strong fundamentals in that it is a tourist hot spot with many events through the year that have an international draw (I do holiday let and AST), it's a big university city and has a good jobs market with fairly big financial companies based / headquartered here.  There are fairly strict planning regulations so you won't see masses of homes flying up (although student accommodation is popping up on most gap sites around me!) therefore supply will always be low in comparison to demand (in my mind). The other cities / towns you mention are also of interest (watch Aberdeen though, massively influenced by the oil price as we've seen and also the 'is there oil or not for next x many years' question).  Maybe add in Stirling, popular tourist city, university city and very central so travel to Edin / Glasgow easy.  See article below about being the most affordable city in the UK!

 

http://www.mortgageintroducer.com/stirling-uks-affordable-city/#.WMfAQ7l1RaQ

 

Re Zeon, he makes a very interesting point about the referendum (think you mean remain in EU though Zeon ;) ).  I say interesting as this may affect my future purchases in the opposite way, I was thinking of diversifying to the northern power house for my next buy (considering RMP); as if the referendum affects Scottish house prices adversely at least I would have the insurance of a property (or more hopefully) in England.  My concern with Edinburgh is that if leaving UK, financial institutes leave, then 1000's of jobs could go.  That's a big if but who knows what the future holds.  Saying that, if Scotland leave UK and join EU maybe there will be positive immigration from rest of UK to Scotland.  Maybe another thread altogether but good point made by Zeon all the same :) Key maybe is just to diversify across borders :D 

 

I'm happy to catch up with you when you're up Charles, I find chatting about property really helps focus and nice to meet someone with the same interests and similar goals.  I've read your journal in the past too, looking good :)

 

Give me a shout if there's anything else you'd like to know.

 

Ollie

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Hi Ollie,

 

Thanks for noticing my error,  I have invested in Crewe recently with a refurbishment project which already has done very well.  I am going to spend some time on right move looking at Edinburgh, I always feel that uncertainty brings opportunities which is very exctiing.

 

 

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4 hours ago, ollie hughes said:

Hi Charles,

 

I live in Edinburgh and have 3 properties here (well will have hopefully when latest one completes on 31st) and one through West and have a very good knowledge of my local area (Dalry). Interesting to see you thinking of Scotland as it doesn't get much coverage on the podcast but obviously has it's pros and cons like anywhere. I find Edinburgh a great investment opportunity, strong fundamentals in that it is a tourist hot spot with many events through the year that have an international draw (I do holiday let and AST), it's a big university city and has a good jobs market with fairly big financial companies based / headquartered here.  There are fairly strict planning regulations so you won't see masses of homes flying up (although student accommodation is popping up on most gap sites around me!) therefore supply will always be low in comparison to demand (in my mind). The other cities / towns you mention are also of interest (watch Aberdeen though, massively influenced by the oil price as we've seen and also the 'is there oil or not for next x many years' question).  Maybe add in Stirling, popular tourist city, university city and very central so travel to Edin / Glasgow easy.  See article below about being the most affordable city in the UK!

 

http://www.mortgageintroducer.com/stirling-uks-affordable-city/#.WMfAQ7l1RaQ

 

Re Zeon, he makes a very interesting point about the referendum (think you mean remain in EU though Zeon ;) ).  I say interesting as this may affect my future purchases in the opposite way, I was thinking of diversifying to the northern power house for my next buy (considering RMP); as if the referendum affects Scottish house prices adversely at least I would have the insurance of a property (or more hopefully) in England.  My concern with Edinburgh is that if leaving UK, financial institutes leave, then 1000's of jobs could go.  That's a big if but who knows what the future holds.  Saying that, if Scotland leave UK and join EU maybe there will be positive immigration from rest of UK to Scotland.  Maybe another thread altogether but good point made by Zeon all the same :) Key maybe is just to diversify across borders :D 

 

I'm happy to catch up with you when you're up Charles, I find chatting about property really helps focus and nice to meet someone with the same interests and similar goals.  I've read your journal in the past too, looking good :)

 

Give me a shout if there's anything else you'd like to know.

 

Ollie

Hi Ollie,

 

Thanks for taking the time out to reply as you have definitely dropped some key knowledge and great that you know the place well. I'll definitely would be up for catching up. 

 

What at areas do you think are in Stealth mode at the moment that have the potential? Also out of the area I suggested also your local recommendation where do you think is good to invest?

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4 hours ago, ZeonRichards said:

Let me know how you get on with this please. I was thinking that if Scotland leave the UK and remain in the EU their housing market could really increase.

Good Point Zeon,

 

So many possibilities with all that is going on with Brexit

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Cool Charles, drop me a PM with your contact details, happy to catch up :)

 

My area is already seeing a ripple from the city centre, new restaurants, upgraded railway station, new tramline etc. It's a good time to get in here or even the areas on my corridor out of town which if you zoom into Edinburgh on the heatmap linked below are still cool blue but still near town and transport links!

 

http://www.zoopla.co.uk/heatmaps/

 

See below for how stations affect house prices.  Now, the tram extension isn't 100% guaranteed in Edinburgh, but if it goes ahead in next couple of years, investing in Leith near a tram stop would be my tip. Easy to find where they are from public information.  Also a place called Western Harbour which imploded during the last crash.  Prices still massively below 2008, if tramline gets extended to there then there's a direct link to the airport and maybe the wasteland surrounding those high end flats will eventually be developed (very long term investment that one).

 

https://www.theguardian.com/money/2014/aug/20/distance-from-station-value-of-house-nationwide-uk

 

Ollie

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Hi Ollie,

 

i am also interested in Edinburgh. I am looking at buying flat near city center for holiday let. I see area in Abbeyhill  have reasonable price but still close to center and other attractions. Do you have any advice with this area?

thanks,

Lien

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20 hours ago, lien ta said:

Hi Ollie,

 

i am also interested in Edinburgh. I am looking at buying flat near city center for holiday let. I see area in Abbeyhill  have reasonable price but still close to center and other attractions. Do you have any advice with this area?

thanks,

Lien

 

Hi Lien,

 

Abbeyhill is pretty good for city centre accessibility. My brother has a place off Easter road as a holiday let (slightly further away) and does well. I am looking at my home area of Dalry at the moment and investigating down Leith walk also as I'm keen to source near transport links (hopefully tram will go down Leith Walk soon). They key with Dalry is it is either one bus or tram from the airport then a short walk (also has a rail station 5 mins away).  From plane landing to arrival is usually one hour.  There are a lot of people that visit by train also so Abbeyhill pretty good for Waverley (short bus trip).

 

Do some Google travel estimates to the places your looking at from airport and stations and see if you would be happy with that as a guest.

 

Here's a great post about some of the major developments planned for Edinburgh, big one at St James (near Leith Walk) and also Haymarket (near Dalry).

 

http://www.skyscrapercity.com/showthread.php?t=1912484

 

What's your budget? Bearing in mind a holiday let LTV of 70%.

 

Cheers

 

Ollie

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54 minutes ago, rob bence said:

Hey Guys,

 

Sure you'll enjoy this Thursday's podcast - we have a Scotland special for you! :)

 

Cheers,


Rob

Ha cheers Rob,

 

Will be listening intently! You'll give me and Charles something to discuss when we catch up in a week B) 

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Hi Ollie,

 

thank you very much for your answer! 

I just looked at one flat on Milton street with reasonable price. However one of letting agent told me that the occupancy rate is not high on that street.  My budget is around 200k. 

What is occupancy rate you have for your holiday let in Dalry? 

 

Thanks

lien

 

 

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Hi everyone!

 

Quality podcast this morning. Surprised to hear Glasgow is similarly overheated as Edinburgh, but looking at prices on Rightmove, I believe that. Does anyone know the Glasgow Harbour area? My offer at the beginning of the week got accepted.

 

Property: It's a modern "luxury" flat on the 6th floor, nice view, 1 bedroom.

Home Report price: 120,000

My accepted bid: 116,500

 

I am a little bit worried about the area. It seems "too" residential and a little bit far from "civilization" (corner shops, etc). Maybe similar to Western Harbour, Edinburgh in the sense that these flats were built around the financial crisis of 2008, and the area never picked up in a big way. I think my question is, does the property have a chance for capital appreciation down the road?

 

If anyone knows the area and has a view, please let me know. In the meantime, I listen to the podcast again. Many thanks in advance, everyone!

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I've not got much to add on other cities, but know a few things about Edinburgh. I'd say you've got three options in Edinburgh, which affects areas to look at; 1. invest for capital growth, 2. invest for yield or 3. hover in the middle. Thoughts below.

 

1. Invest for capital growth

Either look for nice shiny new build properties across the city, or look at areas like Bruntsfield, Marchmont, Newington, Morningside, New Town. You'll pay top dollar for these properties and yield might be a bit low, but the market is strong at the moment and if we're where the Robs think we are in the property cycle, you could be on to a winner.

 

2. Invest for yield

This is what I've always done, and I've targetted ex local authority type properties which with the rental market as it is right now are getting stonking yields of 8% plus on purchase price. 2 bed flats should rent for over £650pcm, 3 beds for over £800pcm in most areas to give you a rough guide. This means looking at less salubrious areas of the city, my faves would be Broomhouse, Stenhouse, Niddrie, Lochend, Restalrig and Pilton (not West Pilton though, it's Beirut). Big properties, good transport links and value to be had on purchase prices.

 

3. Hover in the middle

Always a good option to hedge your bets. The hot areas are Gorgie/Dalry and Leith Walk/Easter Road, these areas have always been prime rental spots and they're really seeing the benefit of the hot sales market at the moment, with rents climbing too. 

 

And if you're looking at properties in Scotland, Rightmove isn't always best. In Edinburgh you need to be looking at the local solicitors website, ESPC.com, and GSPC.com in Glasgow. Most property sales are done through solicitors, and they have their own local portals, so be sure to check these too. 

 

That's my two cents, I'll be at the meetup on the 6th so hope to see some local folks there.

 

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On 3/24/2017 at 7:17 PM, kevin dempsey said:

I've not got much to add on other cities, but know a few things about Edinburgh. I'd say you've got three options in Edinburgh, which affects areas to look at; 1. invest for capital growth, 2. invest for yield or 3. hover in the middle. Thoughts below.

 

1. Invest for capital growth

Either look for nice shiny new build properties across the city, or look at areas like Bruntsfield, Marchmont, Newington, Morningside, New Town. You'll pay top dollar for these properties and yield might be a bit low, but the market is strong at the moment and if we're where the Robs think we are in the property cycle, you could be on to a winner.

 

2. Invest for yield

This is what I've always done, and I've targetted ex local authority type properties which with the rental market as it is right now are getting stonking yields of 8% plus on purchase price. 2 bed flats should rent for over £650pcm, 3 beds for over £800pcm in most areas to give you a rough guide. This means looking at less salubrious areas of the city, my faves would be Broomhouse, Stenhouse, Niddrie, Lochend, Restalrig and Pilton (not West Pilton though, it's Beirut). Big properties, good transport links and value to be had on purchase prices.

 

3. Hover in the middle

Always a good option to hedge your bets. The hot areas are Gorgie/Dalry and Leith Walk/Easter Road, these areas have always been prime rental spots and they're really seeing the benefit of the hot sales market at the moment, with rents climbing too. 

 

And if you're looking at properties in Scotland, Rightmove isn't always best. In Edinburgh you need to be looking at the local solicitors website, ESPC.com, and GSPC.com in Glasgow. Most property sales are done through solicitors, and they have their own local portals, so be sure to check these too. 

 

That's my two cents, I'll be at the meetup on the 6th so hope to see some local folks there.

 

Top Tips Kevin,

 

Thanks for sharing. Where do you invest in Scotland?

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On ‎21‎/‎03‎/‎2017 at 11:01 PM, lien ta said:

Hi Ollie,

 

thank you very much for your answer! 

I just looked at one flat on Milton street with reasonable price. However one of letting agent told me that the occupancy rate is not high on that street.  My budget is around 200k. 

What is occupancy rate you have for your holiday let in Dalry? 

 

Thanks

lien

 

 

 

Hi Lien,

 

Sorry for the late reply (that's like a copy paste I feel I use to start most replies now :D )

 

That property looks good and close to town / parliament / Arthur's Seat and also the sports centre that is going to have a huge refurbishment soon.  Here is another interesting property in a part of town I think is interesting:

 

http://www.rightmove.co.uk/property-for-sale/property-47317872.html

 

My occupancy rate is 80-90% on a minimum 2 night stay.

 

I caught up with Charles when he visited last weekend, although I wish we'd had more time as it flies when you're discussing property I find!  Happy to catch up if you're ever around too as it's easier to go over all the info :)

 

How's the flat hunting progressing?

 

*spoiler alert*

 

There was just an article in the local paper about the City if Edinburgh Council looking into regulating / licencing Airbnb type lets in the city.  I need to read again and try and absorb properly but I will be starting a new topic about it soon with a link.  Worth a read as this may affect your strategy.

 

Cheers

 

Ollie

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My weekend in Edinburgh was great. 

A Big Thank You to Ollie for meeting up with me for a quick chat but learned so much in such a short space of time. 

Great advice also from Kevin Dempsey. 

 

Gutted that I won't make the meet up this week with Rob D in attendance. 

 

Dalry is definitely a place worth investing as it has all the fundamentals. It's 5-8 min drive from the Centre of town. Close to the train station & transport hubs and 25 min drive to the airport. 

 

2 bedroom flats are limited and hard to find 1 bedrooms go very quickly. 

 

Leith Walk is also great similar to Dalry on the other side of the centre of town. Great potential. 

 

Both areas will go up in capital growth in my opinion based on th investment that is happening in the area and the yield isn't bad either. 

 

I need to do some more research but I will definitely be looking into it more. 

 

Airbnb is definitely a interesting topic to watch which I'm certain the Government will look to clamp down on. 

 

Either way way it's a city I will certainly be visiting again and will be staying in touch with Ollie. 

 

Have a good meet up all in Edinburgh 

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Hi everyone,

 

Really interesting thread to read, it's basically an outpouring of my thoughts over the last 3 months. Great information Ollie, would be keen to meet up for a coffee and a chat sometime!

 

We were initially looking to invest in the Leith Walk area but changed our minds and started looking in the Dalry area. We had an offer accepted last week for a 1 bedroom place on Caledonian Crescent (just behind Dalry Road). The flat needs a complete renovation which we'll be looking to complete before the festival. We're going to give Airbnb a go and if we get 80-90% occupancy rates we'll definitely stick to that!

 

From all the research I've done I definitely think Dalry and Leith Walk are solid investments with a mixture of capital growth and good yields.

 

Mike

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Quote

Hi Lien,

 

Sorry for the late reply (that's like a copy paste I feel I use to start most replies now :D )

 

That property looks good and close to town / parliament / Arthur's Seat and also the sports centre that is going to have a huge refurbishment soon.  Here is another interesting property in a part of town I think is interesting:

 

http://www.rightmove.co.uk/property-for-sale/property-47317872.html

 

My occupancy rate is 80-90% on a minimum 2 night stay.

 

I caught up with Charles when he visited last weekend, although I wish we'd had more time as it flies when you're discussing property I find!  Happy to catch up if you're ever around too as it's easier to go over all the info :)

 

How's the flat hunting progressing?

 

*spoiler alert*

 

There was just an article in the local paper about the City if Edinburgh Council looking into regulating / licencing Airbnb type lets in the city.  I need to read again and try and absorb properly but I will be starting a new topic about it soon with a link.  Worth a read as this may affect your strategy.

 

Cheers

 

Ollie

hi Ollie,

 

sorry for late reply! I was on vacation for a while :-) now I am fresh and come back to property world.

I got my offer accepted for a 2 bed room flat on Milton street and will get the flat in 6 weeks time. I will go for airbnb strategy at the moment based on your occupancy rate :-) I am living up in Aberdeen so I will need a company to manage it for me. Do you have any suggestion for this? I think I will invest more in Edinburgh and definitely Dalry/Leith walk is good area for investment.

May I have your number so that I can contact you when I am down to Edinburgh in few weeks time.

 

Thank you all for very useful comment. they are a lot of help for newbie like me :-)

 

best regards,

Lien

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