When faced with a choice between a city centre investment or one in the suburbs, many would instinctively invest in the first, but are they right to follow their gut?
Whilst city centre offers no-brainer quirks like a good location and seemingly constant undersupply, one might be wrong to write off an investment in a more suburban area straight away.
With the better yields often found in outskirts or suburbs, perhaps the choice should be given more consideration before going for a city centre property.
City centre investments have clear appeal.
Often, they are new, shiny buildings in key locations with assurances of quick capital growth. And this is appealing, especially for investors looking for a short-term investment.
However, those with a long-term investment in mind should look more closely at opportunities outside of the centre. With lower purchase prices, properties in these locations will usually come with a higher yield. And whilst capital growth is likely to be lower, this matters less, as outskirt investment are ones where you make the real gain over a longer term.
UK regional rental prices: North West leading the way for yield and demand
More research may be required when purchasing in less central areas. Some things to look into are how to attract tenants to the location. Is the property offering better value, accessible transport links and good local amenities? So make sure you do your research before committing to either of those two investment options.
As prices rise rapidly in the North West’s city centres, we expect to see more investors realising the advantages of a property in key and upcoming locations outside of the central zones. Which will especially lead to more young professionals seeking more reasonable rents away from the rapidly rising costs of the city.
