Buying a property to rent-out has many advantages and is often a great investment in times like these, when interest rates are low and the economic forecast is uncertain.
But, before you dive in, make sure you’ve asked yourself these three questions: am I buying in an area where there is demand for rental properties? Am I paying the right price? Is my property going to rise in value? This short guide to investing in buy to let property in Newport should help answer those questions.
Property prices in Newport have risen by a considerable 7.8% compared with the rest of England and Wales’ 1.4% and yet the average price of property in and around the city is still around £2000 below the national average. Add to that the fact that household growth is expected to increase by 8.1% by 2021 (a projected 7000 new households) and you’ve pretty much ticked all three boxes.
The £2 billion regeneration of Newport over the last fifteen years is one of the keys to this healthy investment landscape: the new University of South Wales campus at Caerleon, the stunning Riverfront Arts Centre and Celtic Manor which hosted the 2010 Golf Ryder Cup, are just some of the many features that have made Newport an attractive destination for students, young professionals, and families.
The city sits happily between the larger hubs of Bristol and Cardiff – just 12 miles away – and ongoing road and rail improvements, in particular, the ultra-modern central railway station makeover, are giving Newport what those in the know are calling ‘commutappeal’.
The new university campus is here, which makes this historic roman fortress town a watering-hole for the student population. It has a lively, cultural atmosphere and, as you’d expect, plenty of pubs. It’s a desirable area and graduates tend to stick around so there’s plenty of rental demand from young professionals. However with relatively high prices in comparison it’s better to think of this as a long term investment – don’t expect much yield in the first few years.
West of the river and much closer to the city centre, Stow Hill has a bohemian reputation and a vibrant feel with local venues like Le pub and the Pen & Wig catering for the tastes of a wide range of residents. Stow Hill is an ideal location for those who work in business or retail in the city centre and want to be close to nightlife too. Property prices are rising here, so it’s definitely worth a look.
A little further out of Newport, Cwmbran is a large satellite town and one that is very popular with families. A large, modern shopping centre and plenty of good schools make the area attractive for those looking for more of a sense of community, including both renters and investors.
Economic development and population growth make Newport a city ripe for investment, particularly in the buy-to-let market. We’ve highlighted just three possible areas to start your search but make sure you do your homework so you get the best deal for your money.