Bristol is gaining attention as a prime spot for buy-to-let investments, thanks to its growing rental market and vibrant community.
The reason? Well, there’s a huge demand for long-term renters here, and rental prices are climbing. Lili Oliver from Oliver Roth mentioned that the city’s population is booming, and incomes are pretty decent too. Plus, it’s a lovely place with great infrastructure.
If you’re thinking about investing, the paper suggests looking into HMOs, especially in St George. You could snag a four-bedroom terrace there for around £450,000. Not too shabby, right?
But here’s the kicker: Bristol is also facing a housing crisis. Last year, it was the priciest place to rent outside London, with average rents hitting £1,734. Ouch!
And if you’re trying to buy, it’s tough too. Rightmove found that the average asking price for a two-bedroom property is about £280,112. That’s a hefty sum!
Monthly mortgage payments aren’t a walk in the park either, averaging around £1,039. Bristol ranks seventh for the most expensive places to buy a home.
There was even some drama last year when a new apartment development was marketed in a way that upset locals. The marketing focused on high rents and profits for landlords, which didn’t sit well with those struggling with the housing crisis.
Alliance Investments was behind the Chocolate Factory development, targeting buy-to-let investors. This didn’t go over well, as many felt it was contributing to homelessness and pushing people out of their neighborhoods.
Lili Oliver also pointed out that the yields for buying in Bristol aren’t amazing. Aldermore estimates average annual yields at 4.4%, which might not be worth the hassle compared to just putting your money in the bank.
However, if you go the HMO route, you could see better returns, estimated between 8% to 12%. It’s more work, but it could pay off in the long run.
