Looking to buy investment property in Glasgow? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Glasgow, the types of deals available and the likely returns. Remember, buying property in Glasgow has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.
Property Investors in Glasgow have received a lot of Government and economic support. Much of this support has come indirectly in the form of the lowest interest rates in history. This has been bad news for savers, but of course good news for those buying investment property in Glasgow using mortgages.
Buying investment property in Glasgow with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis.
Once these properties have been renovated and rented then investors in Glasgow may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Glasgow or elsewhere.
How easy is it to make money from buying investment property in Glasgow?
This model is an absolute pain the backside for potential property entrepreneurs in Glasgow.
Which properties in Glasgow should you buy? What areas of the Glasgow housing market are going to give the best returns? Do you know the planning application process with the council? Or about the change of use regulations?
The question you have to ask your self about buying investment property in Glasgow is how hands on you want to be?
If you want a new career as a developer or property project manager then go for it.
If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Glasgow High Street then there are many investment funds, not readily available to the general public.
If you want a new career as a developer or property project manager then go for it.
If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Glasgow High Street then there are many investment funds, not readily available to the general public.
Map of Glasgow
Glasgow ( GLA(H)Z-goh, GLA(H)SS–; Scots: Glesca[ˈɡleskə] or Glesga[ˈɡlezɡə]; Scottish Gaelic: Glaschu[ˈkl̪ˠas̪əxu]) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated population of 635,640. Straddling the border between historic Lanarkshire and Renfrewshire, the city now forms the Glasgow City Council area, one of the 32 council areas of Scotland, and is governed by Glasgow City Council. It is situated on the River Clyde in the country’s West Central Lowlands.
Glasgow has the largest economy in Scotland and the third-highest GDP per capita of any city in the UK. Glasgow’s major cultural institutions – the Burrell Collection, Kelvingrove Art Gallery and Museum, the Royal Conservatoire of Scotland, the Royal Scottish National Orchestra, Scottish Ballet and Scottish Opera – enjoy international reputations. The city was the European Capital of Culture in 1990 and is notable for its architecture, culture, media, music scene, sports clubs and transport connections. It is the fifth-most visited city in the United Kingdom. The city hosted the 2021 United Nations Climate Change Conference (COP26) at its main events venue, the SEC Centre. Glasgow hosted the 2014 Commonwealth Games and the first European Championships in 2018, and was one of the host cities for UEFA Euro 2020. The city is also well known in the sporting world for football, particularly the Old Firm rivalry between Celtic and Rangers.
Glasgow grew from a small rural settlement on the River Clyde to become the largest seaport in Scotland, and tenth largest by tonnage in Britain. Expanding from the medieval bishopric and royal burgh, and the later establishment of the University of Glasgow in the 15th century, it became a major centre of the Scottish Enlightenment in the 18th century. From the 18th century onwards, the city also grew as one of Britain’s main hubs of transatlantic trade with North America and the West Indies. With the onset of the Industrial Revolution, the population and economy of Glasgow and the surrounding region expanded rapidly to become one of the world’s pre-eminent centres of chemicals, textiles and engineering; most notably in the shipbuilding and marine engineering industry, which produced many innovative and famous vessels. Glasgow was the “Second City of the British Empire” for much of the Victorian and Edwardian eras.
In the late 19th and early 20th centuries, Glasgow’s population grew rapidly, reaching a peak of 1,127,825 people in 1938. The population was greatly reduced following comprehensive urban renewal projects in the 1960s which resulted in large-scale relocation of people to designated new towns, such as Cumbernauld, Livingston, East Kilbride and peripheral suburbs, followed by successive boundary changes. Over 985,200 people live in the Greater Glasgow contiguous urban area, while the wider Glasgow City Region is home to over 1,800,000 people, equating to around 33% of Scotland’s population. The city has one of the highest densities of any locality in Scotland at 4,023/km.
What are Property investment funds
These funds are hidden in plain sight. A global network of nods and handshakes at the Rotary club or on the Golf Course. Some people refer to these private investment vehicles as hedge funds or REITS. However, they are not. These are the funds that wealthy individuals and families invest in to get richer.
The barrier to entry to these exclusive clubs is around £50,000 although do remember that these private investor funds have collectively trillions of dollars under management.
And no, these funds are not available at the bank in Glasgow, nor are they covered by the FCA. Your IFA or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.
Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.
If you don’t know about these firms, and opportunities then these investments aren’t for you. You will need at least some experience with previous investments to be eligible and of course they are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.
Some of these funds don’t invest in property at all. You’ll know them as hedge funds. However, there are a considerable number of Asset backed Investment vehicles delivering significant income and long term growth.
Top three international investment properties realtors in the UK and Glasgow
Is buying property investment in Glasgow a good idea?
The top three actively managed funds directly significant offshore funds into the UK market seem to think so. Of course there’s much speculation about whether rates will rise and the uncertainty around buying property investment in Glasgow. One fact remains often overlooked though, during the frantic and heated investment discussions around the dining tables of Glasgow
Many individuals and families in Glasgow want a safer, long term investment. They realize that property is a relatively illiquid investment and they simple was a property secured investment that provides a nice balance of income and capital appreciation.
Many people looking at buying investment property in Glasgow have plenty of business and investment initiatives already in play, whether it be in Glasgow, further afield or in a safer offshore investment fund.
Types of investment property in Glasgow
The main types of property investment in Glasgow is:
Undeveloped land in Glasgow
Greenbelt land in Glasgow (speculative investment)
Brownfield land around Glasgow (and apply for planning)
A buy-to-let mortgage is a mortgage loan designed specifically for this purpose. Buy-to-let is the process of buying an investment property in Glasgow that is specifically let and is one of the most common types of mortgage in the UK and many other countries. Obviously buy-to-let in Glasgow does not have to be done with a mortgage and the sector does attract a significant number of cash buyers.
The purchase – to – rental of real estate is usually a residential property in Glasgow, but some terms also include a small number of commercial properties, such as office space and retail space. As with a lease, the benefits of buying a rental property in Glasgow as a landlord can include the ability to build up assets as house prices rise over time, as well as the benefit of a low interest rate.
The main risk is that a landlord may borrow to buy the property in Glasgow, expecting the house to be sold at a higher price later, or that rental income will cover or exceed the cost of the loan.
Once the price has fallen, this lever could push the landlord into negative equity and, if he cannot meet the terms of his mortgage repayment, the bank will try to take possession of the property and sell it to get the money he borrowed. Banks in Glasgow can lend to both landlords and tenants, suggesting that the capital is being used for investment rather than rental income, as a professional investor might do.
Buy to hold in Glasgow
Long-term rental property in Glasgow is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.
While some investors in Glasgow may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.
Buying and owning real estate is an investment strategy for investors in Glasgow who buy and hold real estate over a long period of time. The owner usually intends to sell the property later, but leaves it to you to help you buy or finance it.
The rental income from the property in Glasgow generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.
The value of the Glasgow property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.
Investors considering a Glasgow property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.
If the investor plans to sell the Glasgow property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.
Convert Glasgow property to Serviced Accommodation
For property investors in Glasgow, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Glasgow and then converting these homes into serviced apartments to maximize yield.
The types of property used for serviced accommodation in Glasgow are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.
Disadvantages of investing in Serviced Accommodation in Glasgow
Serviced accommodation is more of a business strategy than a property strategy, and the workload is far more intensive. Seasoned veterans liken serviced accommodation investing in Glasgow to the same as running a traditional bed and breakfast. It’s no surprise that the other name for Glasgow serviced accommodation is a holiday let.
You’ll need to furnish your serviced accommodation in Glasgow
You’ll need to clean the rooms and change the sheets every time your guests leave.
Who does all the laundry?
Who does all the cleaning?
Who’s going to do all the work for you?
How are the guests actually going to get in?
Massive Payments to Online Travel Agents
Are you going to have somebody to do a meet and greet?
Buying investment property in Glasgow to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.
Alexander Bentley leads Remedy Investments™ a private equity fund specializing in operational real estate. Remedy Investments™ has significant expertise in developing Luxury ApartHotels across Europe and the wider APAC region.
Alexander Bentley is the creator & pioneer behind Remedy Wellbeing Hotels & Retreats. Under his leadership as CEO, Remedy Wellbeing Hotels™ received the accolade of Overall Winner: International Wellness Hotel of the Year 2022 by International Rehabs.
Because of his incredible work, the individual luxury hotel retreats are the world’s first $1 million-plus exclusive wellness centers providing an escape for individuals and families requiring absolute discretion such as Celebrities, Sportspeople, Executives, Royalty, Entrepreneurs and those subject to intense media scrutiny.
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