Top 6 buy to let hotspots in 2013
Have you ever heard of “grandlords”? You soon will. According to recent research, the number of over-65s becoming landlords to fund their retirement rose by 11 per cent in 2012 compared to 2009. It is not just granddads and grandmas, though: as purse strings are tightened, buy to let investment is an increasingly popular option for people of all ages seeking a stable income.
Want to boost the profits of your portfolio? Where should you be looking?
Investment property portal TheMoveChannel.com (click here to find out more), rounds up the top buy to let hotspots of 2013.
Spain’s low property prices have made it a popular destination for bargain second home hunters but also an ideal market for buy to let investors. Indeed, tourist numbers have risen 3.9 per cent in the last year, driving up the potential yields from holiday lettings. At the heart of it, though, lies Murcia: with the Paramount Theme Park on the way as well as the new airport, the region’s profile is rapidly increasing. Indeed, visitors jumped 8.1 per cent there in the last 12 months, outstripping the rest of the country. Demand from investors has soared too, now accounting for 25 per cent of all Spanish enquiries.
North Dakota, USA
While many cities in the US struggle with their economy, North Dakota has been booming. 18 billion barrels of oil were uncovered in the Bakken Formation, driving people and prospectors to the area. Now, it is the fastest growing state in the USA, with the lowest level of unemployment. As its thriving population seek places to stay, rental opportunities have rocketed with strong, reliable returns. North Dakota is now responsible for 10pc of all oil production in America – and the most popular property listing in May 2013.
As North Dakota grows, Detroit filed for bankruptcy this year – a move that saw many write the city off as a financial failure. Not so for investors. The numbers paint a different picture entirely, with house prices surging 71.5 per cent since 2011. Sales have increased as well, as landlords take advantage of the city’s high demand for rental property, ranking Detroit as one of Realtor.com’s Top 10 Turnaround Towns – and one of 2013’s best buy to let markets.
The UK property market is enjoying a significant recovery at the moment, with prices rising and first time buyers climbing up the ladder. London is leading the way and remains a popular hotspot for wealthy overseas investors, but the capital’s soaring values have left landlord yields flat. For higher returns, regional cities are best, with Leeds, Manchester and Newcastle are performing well. Birmingham tops the table, though, with an average yield of 10.6 per cent in the B7 area, according to a recent report from Move with Us.
As countries around the world bounce back from recession, none can keep pace with Dubai. The emirate’s housing market has rebounded from financial crash as soaring prices and transactions sealed its status as an economic safe haven. Dubai remains a rental-driven sector and rising rents have only made it more attractive for landlords looking for a more exotic portfolio.
If in doubt, go skiing. When it comes to rental yields, the ski season is a reliable period of the investment calendar – and the French Alps is one of the best places to buy. Indeed, one resort this year reopened in the summer to take advantage of the coldest spring in 25 years, while demand for ski property on TheMoveChannel.com in the last 12 months has started to snowball.