17th
Jun 2015
According to information released by a peer to peer lending investor, Birmingham has beaten London to top spot in areas for landlords to invest in buy-to-let and to achieve higher rental yields.
They put this down to the fact because of higher capital gains tax being levied because of the escalating house prices.
The most prosperous postcodes (highest yielding) in Birmingham are, B44 – 13.6%, B42 – 10.5%, B98 – 10.5% with B23 at 9.1%
Jane Morris, MD of a letting company said: “Many landlords tend to invest near to where they live, but if they look further afield, they could easily increase their yields and capital growth.
“The Midlands provides a great investment opportunity as the property is much more affordable than the South East and the yields are high. For example, in Coventry a three bed semi will cost around £125,000 and will provide rental yields of around 6.57%.
“Many of the landlords that we work with are netting between 6.57% and 9.1% from their properties in Birmingham, Coventry and Nuneaton.
“My advice to any landlord looking to invest outside their area is carry out thorough research on property prices, rent prices, and yields to ensure they make the right investment.”
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