This article was first published on financegirl.co.uk
1. The strategy
The main difference between
Flat prices in Britain’s most popular cities for tourism
|City||Number of overnight stays* in 2015,
thousands per year
|Average flat price in March 2016,
*at least 1 night stay
2. The location
Location is the single most important decision in this process because it will determine both occupancy and revenue on the investment. Central locations and popular boroughs attract business and tourist flows that fill up the apartment throughout the year. Needless to say, a bad location is a killer. Cities like Edinburgh, Manchester, Birmingham, Glasgow and Liverpool are all vibrant cultural and business destinations.
Popular and upcoming areas in top five British tourist cities
|Edinburgh||Old Town, New Town, Stockbridge|
|Manchester||North Central, Northern Quarter, China Town, Salford Quays|
|Birmingham||Moseley, Egbaston, Stirchley, Cotteridge|
|Glasgow||City centre, Dennistoun|
|Liverpool||Albert Quays, “Baltic Triangle”, Sefton Park|
Just in terms of tourism, Edinburgh is the most visited city in Britain (excluding London) according to the Office for National Statistics, hosting more than 1.5 million overnight stays per year (i.e., lasting at least one night) and Manchester, over 1.1 million. Not to mention that all these cities are important academic hubs with hundreds of thousands of students, many of which come from abroad.
3. The property
Small flats, like studios and
4. Important trends
Things to look out for include positive demographic trends (i.e., growing population, rising incomes) and rising GDP (i.e., new businesses opening, corporate headquarters, luxury property developments) and infrastructure projects (i.e., roads, railroads, public transport) that will enhance access and promote the flow of people to and from the location. Buying in the right place is the best way to protect the investment from unnecessary risk.
Factors that will increase occupancy
|Location & infrastructure||Attractions|
|Business areas — corporate headquarters||International sports edifices|
|Public transport access||Bars and restaurants|
|Hospitals||Historical landmarks & buildings|
|Universities||Shopping centres — pedestrian streets|
Location is paramount to surviving a downturn: homes in popular central areas will always be in demand and price growth is better. Peripheral real estate (e.g., the suburbs) however is more likely to lose value and generally a lot harder to sell if push comes to shove.
5. Managing the property
Investors are recommended to hand over the
Leigh Stewart — Tranio.com
Disclaimer: Always consult a local property management specialist before making investment plans as there are specific laws pertaining to land use and zoning. New arrivals onto the