Having a property portfolio can sound like a hopeful dream, something that is for the uber rich, oligarchs or tycoons. But, for the busy working professionals we work with across London, the idea of having one, never mind a number of properties, seems implausible.
However, the truth is not only is this possible but also hugely advantageous to any individual looking to build a residual income through Property.
Benefits of having a property portfolio
- Resilience: If there are any issues with one of your properties, you will be protected thanks to the wage you receive from the others
- Leverage: with economies of scale your savings will be stretched much further
- High cash flow: You will receive much better returns on a portfolio against one property
“Well this is all well and good,” we hear you cry, but how on earth can you be expected to invest in multiple properties in London where the average purchase price is £505,000 (according to the UK House Price Index…)
Well at Lifestyle Property People we like to think we have come up with a pretty nifty solution, allowing you to invest in properties at a far lower cost, but with more robust returns.
Now the average price of a house in Leeds is just £85,000, which is a massive £420,000 cheaper than the capital city. But, not only can you save yourself a huge amount of money, you will also have access to far more robust and impressive returns.
The capital growth rate in Leeds is 6.9% compared to London where it is just 1% (according to Hometrack.com). In fact, according to our research, you will receive a fantastic return on investment of 8% in Leeds (according to the CV Library).
Investing in Leeds not only means you could reap far richer rewards, but it will also allow you to see a far richer and more promising return on investment. More importantly, it could actually mean that with less than £100,000 you could have your very own property portfolio.
So to review, and one more time for the cheap seats in the back, Leeds:
- Has a much higher Capital Growth than London
- Has a lower entry point
- Has A better rental cover
- Offers you the opportunity to buy multiple properties meaning you are far more rent resilient and your investment is far more buoyant.
If you would like any more information about the Leeds property market, our blog offers a wealth of information so please do feel free to check it out here.
If you fancy taking a peek at the rest of our blog and learning a little more about investing in property in Leeds please do take a look at some of our lovingly written blogs here. Or if you would like to have a conversation with one of our friendly team members please do give us a call on 0203 633 4280.