Glasgow is arguably Scotland’s second-most famous city, second only to the capital Edinburgh. But while it isn’t the capital, Glasgow is bigger, offers more things to do, and is a very attractive place for property investors.
That said, the question remains: Is Glasgow a good place to invest in property?
Well, that depends. There are many upsides to investing in Glasgow, such as a massive population, a decent rental yield, and relatively low prices for buy-to-let homes. So, if you’re looking to kickstart your investment portfolio with a long-term investment with a lot of upsides, Glasgow is great for that.
However, many things must be considered before investing in a Glasgow property. So, in this article, let’s look at the Glasgow rental market as a whole to help you determine if this is the right investment for you.
A Look at Glasgow’s Rental Market
One of the reasons Glasgow’s rental market is very attractive is due to the sheer number of people living in the area. Around 20% of Scotland’s entire population resides in the greater Glasgow area. The city is full of economic opportunities, which is why there’s a massive rental market that investors might be interested in tapping into.
Glasgow housing prices are much more affordable than the rest of the UK. With the average property price at about £199,306, you can save a lot of money by investing in Glasgow compared to big cities in England. That said, even with the low initial investment, you can still get a decent rental yield, which we’ll touch on later.
Since Glasgow has a huge population, there’s a massive demand for rentals of all types. While the actual rates largely depend on the unit and number of people, it isn’t difficult to start renting out a property or flat in Glasgow.
Again, this isn’t the only consideration you need when finding the right place to invest in a buy-to-let home, but Glasgow’s rental market shows some definite promise. This is why many investors are interested in the location.
What Rental Yield Can Investors Expect in Glasgow?
As mentioned earlier, the average price for a Glasgow house is around £199,000. However, you can find even cheaper prices depending on the exact area and type of property you’re buying. So, you can find properties even lower than £175,000, which is significantly cheaper than other major cities in the UK.
On top of that, the average rental yield for investors in Glasgow is around 8%. This is huge, considering that most major cities in the UK, such as Liverpool offer an average rental yield of 4%. That said, these estimates are based on long-term lets. So, the exact rental yield you can expect will vary depending on the area, size of the property, and other factors.
However, the bottom line is Glasgow presents a decent rental yield for investors. This is why Glasgow presents an attractive and unique opportunity if you’re looking to sell a buy-to-let property in the area.
How Can You Become a Landlord in Glasgow?
If you want to rent out a property in Glasgow, you need to join the Scottish Landlord Register. All landlords in Scotland are required to apply for this register and won’t be able to rent out a property without being within it.
Additionally, Houses in Multiple Occupations need to be licensed by the Glasgow City Council. Lastly, short-term rentals need planning permission and a license before operating. But as long as you have the appropriate documents and have registered, you can easily rent out property in Glasgow.
With that said, you also need to be aware of all the landlord rules and regulations. That way, you can safely rent out a property to a tenant in Glasgow without running the risk of being sued and potentially losing thousands of pounds in the process.
Should I Buy a House or a Flat?
One of the biggest decisions you’ll have to make before investing in a property is the type of property you want to buy. The two most popular buy-to-let options in Glasgow are houses (detached, terraces, or semi-detached) and flats/apartments.
When deciding which type of property to buy, you should consider your budget, the area where you want to buy the property, and the tenants you want to attract. If you’re looking to buy a rental property in the city center, flats are the most popular and the type of tenant you will typically attract will be young people.
If you want to attract older tenants, consider a house in one of Glasgow’s nearby areas such as Scotstoun.
What Happens If You Want to Stop Investing?
One of the major struggles of renting out a property in Glasgow is maintaining the business. Granted, Glasgow offers great opportunities for property investors because of its massive population and rising popularity. That said, there are many investors that have gotten what they wanted from their investment or don’t want to deal with the ins and outs of renting out property in Glasgow.
So, what are your options if you find yourself in this situation?
Well, for most people, the best course of action is to sell your tenanted property. In most cases, this can be quite complicated as there are many things to consider. However, when you go through an agency that specialises in these transactions, it will become much easier.
When you sell a tenanted property, you will no longer have to worry about maintaining your Glasgow property. On top of that, you can put your money into other investments that you find interesting.
Since Glasgow is a very attractive investment opportunity right now, it isn’t hard to sell a tenanted property. In fact, there are many buyers that will be willing to pay your price for the property. So, if you want to do this, make sure to find the right agency to help you out, and the process will be much quicker and easier.
If you don’t want to have anything to do with your rental but would still like to rent it out, find a reputable rental agency in Glasgow. For a small fee, they can manage your rental property for you.
Should I Invest in Property in Glasgow?
If you’re looking for a unique investment opportunity in the UK, you might want to look at Glasgow properties. While the prices in this city are far lower than those of major cities like Manchester and Liverpool, Glasgow offers great rental yield and a massive rental market to tap into. On top of that, Glasgow is a location on the rise. So, there are many potential long-term benefits to investing in a property in this area.
That said, there are many things to consider before investing in any area. Even if Glasgow offers a huge potential, it’s important to look at the bigger picture before actually investing your money.