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Is It Worth Investing in Buy-to-Let Property in Stoke?

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Is It Worth Investing in Buy-to-Let Property in Stoke?
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In these uncertain economic times, more and more people are looking into investing in property that can be rented out. This is because buy to let properties allow you to generate a steady income stream and invest in a market that is much less volatile than others. Investing in a buy to let property is not as simple as it sounds though – invest in the wrong place and you could be left with a home producing poor rental yields or even worse, sitting empty, costing you money instead of generating profits.

To avoid this nightmare scenario, look for areas that are either earmarked as up-and-coming areas to invest in or places where there is a lot of buzz – and get in quick by using cash house buyers to buy your current property from you in as little as 7 days allowing you to reinvest elsewhere.

One such area worth investing in is the city of Stoke on Trent. Let’s look at why.

What is Stoke like?

Stoke-on-Trent offers outstanding transportation links, abundant green spaces, and a diverse range of shops, theatres, pubs, and restaurants. The city continues to witness the development of new projects, further solidifying its status as a gem in the heart of the Midlands.

In terms of connectivity, Stoke enjoys excellent access to major road networks and rail services, seamlessly connecting it to other parts of the UK via the M6 motorway and Stoke-on-Trent train station, which provides high-speed connections to Birmingham, Manchester, and London Euston.

Considering all these positives, it becomes evident why Stoke is an exceptional city to invest in, offering a combination of historical significance, thriving cultural scenes, and convenient amenities.

Why you should invest in buy-to-let property in Stoke

If you are thinking of taking the plunge and investing, Stoke is a great choice even once you scratch beneath the headline attractions, as we explain below.

Top of the Yields

While the city may not often find itself at the top of various rankings, it has secured a remarkable position in the league of property investment success. Research by Property Partner has revealed that Stoke-on-Trent landlords see the highest annual rental yield from buy-to-let properties, with the potential for rental yields approaching 6%.

These impressive figures and findings demonstrate the immense potential for property investment in Stoke-on-Trent making it an appealing choice for savvy investors seeking to maximise returns.

Top Place to Start a Business 

In a 2021 survey conducted by fasthosts, Stoke-on-Trent came an impressive 13th place in the ranking of the best places to start a business in the UK. Surpassing prominent cities like Manchester and Leeds, Stoke-on-Trent continues to shine among the elite startup hubs.

One of the key drivers of Stoke’s popularity as a business destination is its advantageous geographical location. Situated in the heart of the country, the city enjoys excellent accessibility and robust transport links. Major cities such as Birmingham are only a short distance away, making Stoke-on-Trent an ideal base for entrepreneurs seeking proximity to larger economic centres.

Top Universities 

Keele University and Staffordshire University are prominent higher education institutions known for their size and popularity. In the 2022 University League Tables published by the Complete University Guide, both universities secured positions within the top 100.

Investing in buy-to-let properties in student areas offers several advantages. The consistent demand from the student population ensures a reliable tenant pool and minimises vacancy risks. Rental yields tend to be higher in student areas due to the shared accommodation nature, allowing landlords to generate increased rental income. Students typically rent properties for the duration of their academic courses, offering the potential for long-term tenancies and reduced turnover costs. The student rental market tends to be more stable, and less influenced by economic fluctuations. There may be opportunities for rental growth over time as the reputation of the university or demand for student housing increases.

Local Investment 

Stoke-on-Trent’s recognition as one of the best up-and-coming areas for investment in 2022 by The Sunday Times comes as no surprise when considering the remarkable statistics and potential it offers.

Notably, local business support and investment experts, Make it Stoke-on-Trent and Staffordshire, predict that over £2 billion will be invested in the region in the coming years, specifically targeting office, industrial, and retail projects.

The ‘Master Plan’ for Stoke-on-Trent, conceived in 2011, is now coming to fruition, exceeding initial expectations.

Key locations across the area have received approval for major distribution centres, marking significant progress. However, the most thrilling transformation lies ahead at Stoke train station and its surroundings. These plans will accommodate the projected growth in rail travel, the impact of the new HS2 rail line, and the overall expansion of the city.

A standout element of this development is the Goods Yard, a vibrant micro-neighbourhood urban quarter funded by £16 million from the Levelling Up initiative.

These positive developments complement the already impressive projects taking shape throughout the city.

These ongoing investments and initiatives reflect the city’s commitment to growth and creating a thriving environment for businesses to thrive, which in turn encourages people to move into the area. Stoke-on-Trent is undoubtedly embracing its future as a city on the rise.

Pros and Cons of Buy-to-Let

Remember though, buy-to-let investments offer both advantages and disadvantages. Here are some pros and cons to consider:

Pros

Rental Income

Buy-to-let properties can provide a consistent rental income stream, which can be a reliable source of passive income.

Long-Term Appreciation

 Over time, property values have the potential to increase, allowing investors to benefit from capital appreciation.

Tangible Asset

Real estate is a tangible asset that investors can see and touch, providing a sense of security and stability.

Tax Benefits

Certain tax advantages may be available to buy-to-let investors, such as deductible expenses like mortgage interest. Make sure you seek advice to ensure you do not miss out.

Cons

Financial Risk

Property investments come with financial risks, including potential fluctuations in property values, unexpected maintenance costs, and periods of vacancy.

Time and Effort

Managing a buy-to-let property requires time and effort, such as finding tenants, property maintenance, and handling administrative tasks.

Market Volatility

The real estate market can be subject to fluctuations, which can impact property values and rental demand.

Tenant Risks

There is a risk of problematic tenants, including late or non-payment of rent, property damage, or legal disputes, which can add stress and financial burden to the landlord. Nightmare tenants can be a real headache if not managed correctly. If you’re looking to release equity from your existing property to invest in Stoke, or if you’re simply looking to sell quickly without the hassle and uncertainty of the open market, you may want to consider selling to cash house buyers. At We Buy Any Home, we can provide a fast, secure, and straightforward route to selling your property, often completing the sale in as little as seven days. This can be an ideal solution for those looking to reinvest their capital quickly in burgeoning property markets like Stoke-on-Trent.

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