In Falkirk, I am speaking to more and more landlords, be
they seasoned professional landlords or FTL’s (first time landlords), as they
read The Falkirk Property Blog that shows that the Falkirk rental market is
doing reasonably well, with rents and property values rising.
When I was having a chat with one of these landlords over
a cup of tea in Tea Jennys the other day, he asked me two completely unrelated
questions that got me thinking. The questions
were, how much faster are Linlithgow and Edinburgh property prices rising than Falkirk
ones and how much he should be paying per square foot?
Interestingly, we both thought that obviously Linlithgow
and Edinburgh property prices would be rising faster than Falkirk property
prices but, going by my mantra of ‘never assume nuthing’, I did my research and
was astounded by what I found.
Over the last twenty years, property values in Falkirk
have risen by 266.67%, compared to Edinburgh’s 258.42% and 259.17% in
Linlithgow.
This is an astounding result as it turns the historical
view of the capital growth vs income see saw on its head. The capital growth vs income see saw says
that the higher the capital growth the lower the rental yield and vice versa.
However, the property values research I did means that not
only has capital growth been greater in Falkirk than in Edinburgh and
Linlithgow, but your investment money also goes further in Falkirk as
properties are cheaper meaning there will be higher a rental yield – in Falkirk
you can get easily 6-8% whereas in Edinburgh you are lucky if you get 4-5% per
year and Linlithgow is somewhere in between.
So looks like ‘you can have your cake and eat it’!
What about the ‘how much he should be paying per square
foot’ question I hear you say? Well,
that’s a topic for a future blog post .... watch this space.
Whether you are a landlord, a ‘Homes Under the Hammer’
addict or just a homeowner who is interested in what is happening to the local
property market, then please visit The Falkirk Property Blog (www.thefalkirkpropertyblog.co.uk),
contact me for a chat (phone on 01324 469840), come
and see me in my office (6 Vicar Street, Falkirk) or email me (falkirk@thekeyplace.co.uk).
A few more interesting articles about the
Falkirk Property Market:
- 26% of Falkirk Tenants’ Salary goes on Rent http://bit.ly/25LoBwJ
- Falkirk’s ‘Generation Rent’ to grow by 32% by 2021 http://bit.ly/1spHi7q
- Why should you consider buying to let in Falkirk? http://bit.ly/1W1NNcY
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